Financial Analytics in Healthcare

Losing the revenue (Financial breakdown)

Between March 1 and June 30 of 2020, health systems lost around $202.6 billion. Healthcare infrastructure suffered a considerable loss, resulted in poor healthcare services.

IT team of healthcare institutions implemented cloud infrastructure to reduce the IT infrastructure cost and improve the operations.

Is the digital transformation solution to all the above problems?

Yes, digital tools can help healthcare providers to tackle the challenges. IT team with digital tools in the backend helped the providers continue the health care support for the patients even in the most challenging times.

Catalysts for Financial analytics adoption

• Market adoption As per latest MarketWatch report, Healthcare Financial analytics market is expected to grow at a CAGR of 24.5% during 2018-23. Factors such as growing federal pressures to curb costs, preference for telemedicine, Electronic Health Records adoption, initiatives focused on quality of care and personalized medicine / treatment plans, are expected to drive growth.
• Analytical tools are under-utilized As per research from Black Book Market research in 2020, 93% of C-suite executives believe that data analytics are “crucial” to future healthcare demands / operations. At the same time, 84% of them labeled the usage of advanced analytics at their organization “negligible”.
Most often analytics were used to justify past decisions and not for strategic planning. There is a shift to identify key recommendations for growth with the new changes through the pandemic.
• Lots of data with only a few right answers There is huge pile of data, but most of it goes unused. Nearly 70% of all payer data and 90% of all data is not used. It is collected and stored — but never organized, interpreted, or operationalized.

Margins and costs by service line, procedure, treatment plan and per patient

It is always an overall view of the costs and margins and they were not looked at each granular detail. The pandemic has shown the importance of effective utilization of healthcare resources while also managing costs. A patient-to-patient comparison, procedural comparison can give insights about similar cases in future and strategies to optimize costs. A particular set-up may not be profitable in all the service lines and procedures.

Predictive analytics to identify at risk patients for deferred or cancelled treatment

Coronavirus has delayed care for many people and still the fear of entering a hospital set-up is back holding many treatments. A risk analysis of certain chronic diseases (Cancer, Heart failure) and behavioral health issues can aid in prioritizing the care plan for the most needed.

Revenue cycle analytics

Forecasting revenue and estimating demand is key to manage the entire healthcare system efficiently. Further decisions like staff planning, supply chain management, operational planning is dependent on this. Also, these insights can aid in proactively managing the delayed payments from payers. In an uncertain time like this, it is much needed to be calculative for future.