Deloitte Report Reveals Why Health Systems Lack Integrated Healthcare Analytics Strategy; Recommends Adoption Framework
Many large health systems don’t have a clear, integrated healthcare analytics strategy, despite recognizing the critical role analytics will play in the transition to value-based payment models.
Deloitte’s 2015 report “Health System Analytics: The Missing Key to Unlock Value-Based Care” reveals a major gap between health systems’ belief in the importance of healthcare analytics and actual implementation. The report is based on a survey of 50 respondents—chief information officers, chief medical informatics officers, and senior technology leaders—representing 15 percent of health systems, academic medical centers, and large (revenue of at least $500 million) hospitals in the U.S.
Key Findings from the Report
- Fewer than half of respondents—20 out of 50—reported having an integrated healthcare analytics strategy.
- 1 in 3 reported they don’t know their organization’s spending on analytics.
- Only five respondents said they expect their analytics spending to grow in the next three years.
- 21 out of 50 respondents reported they don’t have a formal data governance model.
- Nearly half lack centralized analytics oversight.
Why So Many Health Systems Don’t Have a Clear, Integrated Healthcare Analytics Strategy
Organizations with centralized analytic strategies are best positioned to navigate the transition from fee-for-service payment models to value-based care. And, according to the report, health systems with mature analytics capabilities report greater success. So why don’t more health systems invest in analytics? The report explains why “analytics adoption and investment don’t match the hype.” Respondents cited numerous reasons for not investing in analytics:
- Lack clarity on current analytics spending.
- Culture, operating models, and fragmented oversight.
- Lack of access to funding and skilled resources.
- Numerous confusing vendor product offerings.
- Inconsistent industry definitions of analytics.
Recommended Framework for Analytics Adoption
“Surveyed organizations agree that analytics-driven insights will play a significant role in the implementation of their value-based care programs,” according to the report. Organizations need advanced analytics tools to glean insights from their data. The report recommends a framework for healthcare analytics adoption:
- Engage committed leaders across the enterprise who are committed to using analytics.
- Implement a structured data governance model and enterprise-wide analytics strategy.
- Manage analytics investments to drive tangible value for functional business units.
- Emphasize data and technology standards to promote interoperability and efficient use of analytics resources.
- Recognize cultural aspects of using analytics to make improvements.
Healthcare Analytics Will Continue to Grow
The need for healthcare analytics will continue to grow as health systems strive to manage vast amounts and varieties of healthcare data while competing in a value-based care environment. According to the report, widely publicized numbers for today’s global healthcare analytics market range between $4 and $5 billion. With an anticipated annual growth rate of 8 to 11 percent through 2020, analytics will be one of the highest spending growth areas in health systems.