Executive Summary
Most data-driven healthcare IT (HCIT) providers arent going to survive. Their business models are at serious risk of failure as health data becomes more widelycollected and freely shared. To beat those odds, they need to evolve dramatically, and fast, to a point where they are not selling data but providing insight. There are two common ways to provide insight: one is to focus on specific use cases, and the other is to focus on particular patient populations.The marketplace is rapidly moving in this direction. For example, Proteus Digital Health is engaging with health systems to provide insights into health patterns and treatment effectiveness for patients with uncontrolled hypertension and diabetes.The late economist and marketing professor Theodore Levitt famously said People dont want to buy a quarter-inch drill, they want a quarter-inch hole. In health care, providers dont want data, they want solutions that lower costs and improve outcomes. HCIT firms that deliver those solutions are the ones that will be around in five years time.
Most data-driven healthcare IT (HCIT) providers arent going to survive. Their business models are at serious risk of failure in the next three to five years. To beat those odds, they need to evolve dramatically, and fast, to a point where they are not selling data at all.
Like any number of industries, healthcare is being transformed by the explosion of low-cost data. In healthcare, the transformation is driven in large part by electronic medical record adoption and digitization. There have been many benefits. End users can take advantage of quantities of newly available information to solve problems in population health, clinical decision support, and patient engagement, among other applications. And ease of access means ease of market entry: Emerging data providers can get on their feet quickly and create new sources of competition. For example, AiCure and Propeller Health are using very different methods to generate patient medication adherence data. Competition leads to better offerings and more choice. What could go wrong?
Plenty, actually. End users can be overwhelmed by the flood of raw data and reports that may not fit well with their existing workflow or answer their specific question. And for data providers, ubiquitous availability of information and low barriers to entry means that the competitive advantage gained from the data itself can be quickly eroded.
Yet too many HCIT providers are still pursuing that data-centric advantage. The bulk of HCIT investment supports startups that sell data clinical or operational information that is otherwise difficult for clients to obtain or to organize. These firms regard data as the source of business value. But as more data and more data providers flood the market, a competitive position based solely on data becomes impossible to defend. Consider the move by the Centers for Medicare and Medicaid Services to publish extensive Medicare enrollment and utilization data, and to make it accessible and easy to interpret via the CMS website. Information that would once have been proprietary and premium-priced is now widely available, for free. CMSs move illustrates a broad trend. Increasingly, for most HCIT firms, data is a commodity.
Whats a data provider to do?
One solution is to become the authoritative source for a particular kind of information. Some firms have managed it, in healthcare and in other arenas think of QuintilesIMS as a source of pharmaceutical sales data, Nielsen as the authority on TV viewer habits, and the U.S. Census for information about U.S. demographics. In theory, a healthcare IT provider can follow their lead and try to corner the market on a data set. But to do this in todays landscape is a tall order. The same dynamics weve described widespread access, low costs, low barriers to entry, commoditization of data sets mean its an open question whether this strategy can work.
A better option is to evolve from providing data to providing insight.
Companies moving this direction aim to solve problems within a use case, for example, decision support. They might focus on a specific population such as cancer, diabetes, or Alzheimers patients and a specific insight about disease progression, pain management or treatment options. They address an underlying stakeholder need such as managing the total cost of care. Clients get whats really needed raw data transformed to support better decisions. And HCIT providers escape the commodity trap.
The marketplace is rapidly moving in this direction. IBM established its Watson Health business unit to apply cognitive computing analyses to healthcare and in 2016 announced plans to acquire Truven Health Analytics for $2.6 billion. IBM plans to leverage Truvens vast data collection sourced from more than 8,500 insurers, hospitals and government agencies to support specific use cases, using Watsons analytical capabilities. For example, some Watson Health initiatives focus on improving oncology diagnostics and identifying the most effective treatment protocols for specific cancer patient subgroups.
Another solution provider, Proteus Digital Health, is engaging with health systems to provide insights into actual medication use and resulting health patterns. Understanding treatment effectiveness for at-risk patients in particular for patients with uncontrolled hypertension and diabetes is a priority for many health plans. Proteus analytics support patient and family engagement and care-team coaching to drive clinical improvement. Other data analytics services based on accurate medication-intake information, in combination with physiological measures, also promise to improve clinical decision-making, reduce doctors workload, and improve outcomes.
The transformation from data provider to data analytics services is hard. It requires significant changes in business models, staffing and management approach. But we believe its the only option. The late economist and marketing professor Theodore Levitt famously said People dont want to buy a quarter-inch drill, they want a quarter-inch hole. In health care, providers dont want data, they want solutions that lower costs and improve outcomes. HCIT firms that deliver those solutions are the ones that will be around in five years time.
See the article here:
To Survive, Health Care Data Providers Need to Stop Selling Data - Harvard Business Review
- How good is fish for your diet? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- What foods have both fiber and protein? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Is There Evidence That Acupuncture Works? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- What are some good fiber foods? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Can Green Tea fight HIV infection? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Quality of GNC Supplements [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- The Gene Smart Diet [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Tips for eating in a vegetarian lifestyle [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Regarding the Starting of a new diet regimen [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Thoughts on Dropping Weight [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- What do doctors think about vitamin E supplements? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- What herbs or supplements are commonly used for depression? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Is there a safe way to lose a lot of weight? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Diets that promise you will lose weight [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Are Fish Toxins Linked to Diabetes? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Can Plastic Surgery Help Migraines? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Weight Loss Surgery Eradicates Diabetes Symptoms [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Found: A Gene That Controls Fat Cells [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Sugars and Starches, what's the difference? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Improving your health with a serving of nuts? [Last Updated On: November 8th, 2009] [Originally Added On: November 8th, 2009]
- Is Your Diet Causing You To Be Depressed? [Last Updated On: December 13th, 2009] [Originally Added On: December 13th, 2009]
- Placebo Effect: Magnetic Bracelet Therapy [Last Updated On: December 13th, 2009] [Originally Added On: December 13th, 2009]
- Does serotonin promote sleep? [Last Updated On: December 13th, 2009] [Originally Added On: December 13th, 2009]
- Decreased energy levels - Overeating, Sleep, Nutrition [Last Updated On: February 1st, 2010] [Originally Added On: February 1st, 2010]
- When will the body begin to cannibalize muscle tissue? [Last Updated On: February 7th, 2010] [Originally Added On: February 7th, 2010]
- Foods that are high in antioxidants [Last Updated On: February 7th, 2010] [Originally Added On: February 7th, 2010]
- Editorial: Reduce health care costs by cutting administrative overhead [Last Updated On: April 1st, 2012] [Originally Added On: April 1st, 2012]
- Health Care Winners: Centene, Onyxx [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- Dan Morain: Nurses union puts politics ahead of health [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- What's next if Obamacare falls? [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- Global Managed Health Care Services Industry [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- Immigration Fight Echoes Health-Care Case at High Court [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- Medical Centers Lead Workplace Wellness Effort [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- The next health care overhaul? Look to employers [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- Capital BlueCross Hosts Community Health Care Forums Focused on Managing Costs While Maintaining Quality [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- County committee to look at area health care [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- President Obama Calls on Students to Tell Congress: #DontDoubleMyRate - Video [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- Sen. Coburn: Competition in Health Care to Allocate Resources - Video [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- Jesse Kelly health care - Video [Last Updated On: April 25th, 2012] [Originally Added On: April 25th, 2012]
- PHC Vision Statement (short version) - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- The Bioeconomy Blueprint Panel - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Providence Health Care's Vision Statement - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Department of Health and Human Services: Minority Health Blogger Townhall - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Health care worker accused of stealing identities of brain i - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Health Care Reform, Part 1 of 3 | KYVE Insiders Roundtable - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Health Care Reform: The ACA and Beyond - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Is Broccoli Like Health Insurance? - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Did Obama make a mistake on health care? - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- How Democrats Lie About Health Care - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Toobin on Health Care: This was a "judicial hissy-fit" - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- President Obama says health care law will stand - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Obama Defends Health Care Law From 'Judicial Activism' - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Obama Healthcare Individual Mandate - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- President Obama attacks Supreme Court on health care - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Raw Audio: High Court Dissects Health Care Act - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Health care on trial - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Final Day of Health Care Law Arguments Before Supreme Court - Video [Last Updated On: April 30th, 2012] [Originally Added On: April 30th, 2012]
- Feds to put up $1.9B for Oregon health overhaul [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Scuttling health care act will freeze Medicare, White House warns [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- U.S. Health Care Spending High, But Quality Lags: Report [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Yes, the Health-Care Mandate Is About Liberty [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Health center gets $1M federal grant [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Health-care reform panel considers exchange options for Va. [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Hmong health care gap focus of Healthy House dinner [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Walsh-led health bill to be unveiled [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- Ontario health system confusing for ailing seniors, study finds [Last Updated On: May 4th, 2012] [Originally Added On: May 4th, 2012]
- 'Health Care Deserts' More Common in Black Neighborhoods [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- With federal money, Oregon kicks health care reform into high gear [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- Nurse practitioners tackling more 'doctor' tasks [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- Konza Prairie Health Center Receives $4.5 Million Grant [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- Alberta wages hurting Sask. health care [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- House releases plan to cut growth of Massachusetts health spending in half [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- Mass. House Will Unveil Bill Seeking To Rein In Health Costs [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- President Obama Welcomes the Kentucky Wildcats - Video [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- President Obama Speaks on College Affordability - Video [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- My First Job: Gene Sperling - Video [Last Updated On: May 5th, 2012] [Originally Added On: May 5th, 2012]
- Health-care costs worry near-retirees [Last Updated On: May 7th, 2012] [Originally Added On: May 7th, 2012]
- Massachusetts Institutes Health-Care Price Controls. Is America Next? [Last Updated On: May 7th, 2012] [Originally Added On: May 7th, 2012]
- Massachusetts Moves Toward Health-Care Price Controls. Is America Next? [Last Updated On: May 7th, 2012] [Originally Added On: May 7th, 2012]
- GOP plan boosts Pentagon, cuts social programs [Last Updated On: May 7th, 2012] [Originally Added On: May 7th, 2012]