IDC Market Glance: Value-Based Health
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1 IDC Market Glance: Value-Based Health Jonas Knudsen IDC
2 A change in paragime major trends Personalization Integration Value IDC Visit us at IDC.com and follow us on 2
3 Organizations are Facing Several Challenges Silos of Innovation Digital Platform Limited Expertise Digital Capabilities Outdated KPIs DX Performance Scorecard DIGITAL NATIVE ENTERPRISE Siloed DX Initiatives DX Organization Structure Tactical Plans Digital Roadmaps 3
4 Key areas of interest high level The mission in healthcare is to create a value-based health system that is focused on shifting from sick care to healthcare with an emphasis on preventive care and population health management. Facilities, organizations and information governance must be aligned with a value driven agenda Financial incentives must be aligned with reimbursement strategies moving away from volumebased models to outcomes-based models. Patients must assume greater responsibility managing their own health through a variety of consumer engagement initiatives. IT must be the enabler IDC 4
5 Key building blocks Integrated Practice Units Significant improvement in value will require fundamental restructuring of health care delivery, not incremental improvements. Move to Bundled Prices for Care Cycles Patient quality Measure Outcomes and Cost Excellent Services Across Geography Integrate Care Delivery Across Separate Facilities There is a need for an enabling IT architecture 3 rd platform compliant Organizational Financial Clinical IDC 5
6 IDC 6
7 Time for integrated care through digital transformation General practitioner Specialty providers Patient Acute hospital Community care Pharmacy and laboratory IDC 7
8 BDA plays a crucial role in building a value-based healthcare model. Does your organization use Big Data analytics solutions? Do you use or plan to use Big Data and analytics for any of the following use cases? Western Europe Healthcare Providers BDA Adoption and Investment Plans Western Europe Healthcare Providers BDA Use Case Adoption or Investment Plans Compliance check and reporting on quality of care 30% Not using and no plans 43% Illness/disease progression 24% Yes, already using 38% Organization resources utilization and turnover 23% Reduce financial fraud and abuse 22% Plan to adopt in the next 12 months 7% Clinical decision support/evidencebased medicine 22% Evaluating, but no plans to adopt yet 11% Personalization of patient pathways 21% Population health management 15% Source: IDC European Vertical Markets Survey, October 2016, n = 176 8
9 The challenges and benefits posed by advances in cognitive technologies have been leveraged in patient experience, health information management, and systems integration. Q. In which area is your company using or planning to use cognitive systems?* Patient Experience Clinical decision support Therapy services Enabling persons with chronic conditions to self-manage more effectively Generating natural interactions and engage in edutainment activities Driving value-based care Systems Integration Health Information Management Health analytics Health informatics Health information analysis Statistical analysis *Open question Hardware and software system environment Intelligent sensing Interoperability Tracking of equipment Source: IDC European Vertical Markets Survey, 2016 (n = 31) 9
10 DX is typically managed by the hospital CEO, making alignment with business very close. Who would you say is leading digital business transformation efforts across the organization? 41% Digital Transformation Efforts in Healthcare and Cross-Industry Average 33% 16% 13% 15% 7% 7% 3% Chief executive officer (CEO) Chief, VP, director, head of operations Chief, VP, director, head of strategy Chief, VP, director, head of technology Healthcare Cross-industry avarage Source: IDC EMEA, European DX Practice Survey, March 2017 (n = 423, healthcare = 32) 10
11 Is healthcare IT a strategic priority or is it still managed bottom up? What is your organization's primary approach to funding digital business transformation activities and initiatives? ( Healthcare providers) Project-by-project budgets as individual DX opportunities are identified Individual business unit budgets set across several DX projects 16% 28% Coordinated annual enterprisewide DX budget for all initiatives 31% Crowdsource funding externally from community and partners for specific projects 22% Source: IDC EMEA, European DX Practice Survey, March 2017 (n = 423, healthcare = 32) 11
12 Guidance Create a value based healthcare strategy with patient centric focus involving the ecosystem. Create value driven KPIs and explore how IT can monitor and measure progress and results based on quality. Create an enabling digital platform. Reengineer and obliterate old ways of organizing and designing hospitals and establish integrated practice units, where processes, organization and the facility is designed around the patient pathways. IDC Visit us at IDC.com and follow us on 12
13 THANK YOU Jonas Knudsen Research Director Health Insights
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