Big data is here to stay. Once considered a buzzword, the term big data has begun to transform the way organizations view the business world and their consumers. While other industries have wholeheartedly embraced the big data wave, healthcare is catching up only now.
By delivering a better planned healthcare system, improved patient outcomes & affordable care, there exists immense potential for big data to shake the very foundation of the $3 trillion healthcare industry in US. The role of big data in healthcare is set to expand and transform the way care is delivered and received in the US.
The track record of healthcare spending in the US hasn’t been sustainable. In fact, IDC Health Insights predicts it to double and reach $4.5 trillion by 2019. This means more pressure on the US economy by way of inflated healthcare costs and insurance premiums. The challenge for healthcare predictive analytics solution designers is to create ‘scenario-driven’ platforms that have the ability to merge distinct systems, associate on-time occurrences and manage them over a time span to justify the spend. Apart from the above, a number of payers are moving away from the fee-for-service to value-based reimbursement model. This helps in prioritizing clinical outcomes and the focus is shifted to care quality and disease prevention as opposed to treatment volume.
According to a McKinsey and Company report, healthcare expenditure in the US accounts for more than 17 percent of the gross domestic product (GDP). This figure is way over the average for a country with similar size and economic condition. The report suggests that to alleviate the over-expenditure and create new revenue sources, a paradigm shift in attitude needs to take place. McKinsey proposes a new value framework to facilitate this shift. The model uses Big Data analytics to determine what is ideal for patients and healthcare authorities. This includes having the “right supplier, right economic value, right innovation and care”, that motivates individuals to practice right ways of living. Hence, this encourages comprehensive Big Data to generate value-driven feedback mechanism.
Thus, a re-imagined view of big data in healthcare can boost profits while lowering costs in the long run. Critics may view this industry as highly fragmented, but analytics has the potential to generate positive results using various data channels. Health IT in isolation will not create sufficient value for care providers, patients and the industry. Instead, a model that loops all the ‘right’ elements together has a better chance of promising the ultimate goal of any business – A better bottom line.