Physician Data Analytics – Return on Investment
Last month, I discussed some ideas of how physician analytics can impact your future in 2015. This month I would like to discuss the return on investment of using physician data analytics for population health.
What is the payoff time period?
A recent poll by KPMG (In Healthcare Informatics, 01/15/15) revealed the following response to the question of how long it would take to recoup your investment in healthcare analytics:
• 20% = Pay off in 1-2 years
• 36% = Pay off in 3-4 years
• 29% = Pay off in 5 or more years
• 14% = No payoff.
Survey respondents indicated the biggest benefit from population health management is “to reduce avoidable medical costs and variability in care.” For a physician in private practice, the increase in physician efficiency and improvement of overall practice operations can also have a very positive impact on improving the “bottom line” (see my November blog for a case study example).
What is the benefit?
When asked what the biggest clinical benefit derived from using data analytics and population health management was, the survey indicated:
• 36% = Increasing preventive care
• 23% = Developing evidence-based protocols
• 21% = Managing chronic diseases.
Where is your organization?
When asked where your organization’s population health management capabilities were, the respondents indicated:
• 24% = Mature
• 38% = Elementary
• 23% = Infancy
• 15% = Non-existent.
As I have mentioned in my earlier blogs, the key point is not analytics itself, but whether or not your practice is on the “data analytics journey.” This may seem like a daunting task, but my recommendation is to start small, think simple and begin the process. The overall long-term benefit will be great and will position your practice not only for survival in the future, but move it into a “thriving” organization – one that you can be proud of and truly enjoy doing what you do every day – treating patients! The time is NOW to get on board!