Cost Control Essential to Managing Healthcare IT

C-level executives at Boston’s Brigham and Women’s Hospital realized two years ago that the medical center needed to shed at least $50 million from its $2.6 billion annual spending budget.

“It was very clear we had to become a much leaner, more efficient organization,” said Ron Walls, the hospital’s chief operating officer.

The Harvard-affiliated facility’s financial crunch followed comparable actions taken by the Mayo Clinic, which was striving toward $1 billion in cost reductions over 10 years, and the Cleveland Clinic, which had pared expenses by $800 million over four years.

The IT Impact

Austerity initiatives tend to affect all aspects of hospital operations from staffing to supplies, and ultimately reach into IT planning and implementation. Consequently, healthcare CIOs should pursue digital transformation opportunities that deliver improved care without bumping up costs, according to IT research and advisory firm Gartner.

The path forward recommended by Gartner places priority in the following areas:

  • Collaborating with the chief financial officer and chief medical officer when designing IT solutions aimed at improving monetary and clinical outcomes. A pilot project addressing a specific use case can provide proof-of-concept for reigning in costs while promoting system adoption. If successful, the project can be scaled up across the organization.
  • Evaluating the organization’s ability to create and manage digital business architectures. Again, feedback from operational managers and clinical leaders should inform strategies needed to reach a state of real-time readiness.
  • Establishing key performance indicators to measure digital progress. Optimization efforts should be focused on delivering positive health outcomes for patients.
  • Assessing whether existing IT investments are being optimized. For example, is the electronic health record (EHR) system providing anticipated value to the organization? Gartner’s 2018 CIO Agenda Survey found that 80 percent of respondents felt their EHR had not yet delivered the intended return on investment, and 50 percent reported only moderate or minor returns.

A separate analysis of leading organizations from the College of Healthcare Information Management Executives (CHIME) reveals a number of shortfalls in the use of hospitals’ foundational technologies. To name a few: almost all physicians have access to the EHR system, but only half can access EHR resources using mobile applications; similarly, nearly all physicians can contribute to a Continuity of Care Document, but just 60 percent can consume discrete data from a home health agency or skilled nursing facility.

Similar imbalances exist in regard to what CHIME refers to as “transformational technologies” at organizations considered at the forefront of using IT to improve the delivery of care. Significantly, 76 percent can perform retroactive analysis for care improvement and cost reduction; however, only 43 percent can manage bundled payments or do real-time identification and tracking of value-based care conditions. Additionally, less than 60 percent use clinical and billing data as well as health information exchanges to identify gaps in care.

Overall, integration, interoperability, security and disaster recovery capabilities, along with technologies that support population health management, value-based care, patient engagement and telehealth “need to be in place for an organization to leverage tools to effectively transform healthcare,” the CHIME report stated.

NetDirector’s cloud-based document and data-exchange platform unifies clinical and billing data to help healthcare organizations drive down costs and improve patient outcomes. As such, HealthData Exchange can be an essential component of any IT cost-control or efficiency initiative by moving data among disparate systems among hospitals, labs, pharmacies, imaging centers, and government agencies while adhering to HIPAA security and HL7 compliance standards.

 

To learn more about NetDirector’s HealthData Exchange platform, please contact us or request a free demo.

Artificial Intelligence Set to Soar in Healthcare

The market for artificial intelligence (AI)-based medical image analysis software will grow exponentially over the next several years, from the current level of approximately $400 million to more than $2 billion in 2023, according to a recent report from Signify Research. Product development pace is at an all-time high, driven in part by the improved performance of AI algorithms and rapid advancements in computing, storage, and networking capabilities.

Nonetheless, the promising outlook hinges on algorithm developers identifying use-cases where “AI can be shown to improve clinical outcomes and deliver a clear return on investment for healthcare providers,” writes analyst Simon Harris, author of the report. “Moreover, the technology needs to be fully integrated in the existing user interfaces and workflows found in radiology departments, both working in the background to augment radiologists’ knowledge and efficiency, and [being] readily accessible when specific tools are needed.”

Areas to watch include breast and lung imaging for cancer detection, neurological imaging for stroke detection, and non-invasive imaging for the diagnosis of coronary artery disease, according to Signify. If things go as predicted, patients would benefit from personalized treatment made possible by higher accuracy in diagnostic imaging, and radiology departments would be better equipped to handle increasing workloads.

Practical Applications of AI

Many AI algorithms in development for radiology address detection of abnormal structures in diagnostic images and can be used in modalities ranging from CT scans to X-rays.

The technology automates the handling of data-intensive studies such as mammograms, which are transitioning from 2D to 3D imaging, notes Matt Dewey, CIO of Wake Radiology in the Raleigh-Durham, N.C., area. “We go from a study that used to be 64 megabytes for a normal, standard study to about 2 gigabytes, so it just takes the radiologist much more time to go through,” Dewey explains. “If we can find a way that a computer looks through it, it should make a difference [by highlighting] things for the radiologist.”

Additionally, AI could help by analyzing data from non-radiology sources such as lab test results and patient-specific files from electronic health record systems. AI’s role would be to extract key pieces of information for each case, says Dewey.

Elsewhere in real-world AI applications:

  • Mayo Clinic is conducting molecular sequencing and analysis for 1,000 patient participants in immunotherapy studies for various cancer types. The results will help shape customized treatment options.
  • Cleveland Clinic has integrated Microsoft’s Cortana AI digital assistant into a command center that monitors 100 beds in six ICUs on overnight shifts. The focus is on identifying patients at high risk for cardiac arrest.
  • Massachusetts General Hospital has installed a “deep learning” supercomputer to tap a database of 10 billion images for applications in radiology and pathology.
  • Johns Hopkins uses predictive analytics to support more efficient operational flow. Among the targets are faster ambulance dispatches, streamlined bed assignments in the emergency department and more patient discharges before noon each day.
  • UCLA Medical Center is testing an AI-driven chatbot that communicates with referring clinicians and provides evidence-based answers to frequently asked questions.

Integration Will Fuel AI’s ‘Engine for Growth’

From a broad perspective across healthcare, AI applications constitute a “self-running engine for growth,” with the potential to create $150 billion in annual savings by 2026, according to consulting firm Accenture.

In pursuit of those projected gains, the technology challenge will be integrating health data across platforms and connecting various data sources.

NetDirector’s cloud-based HealthData Exchange already has a footprint in radiology and imaging centers, enabling them to reduce integration costs and facilitate improved workflows and communications with the extended provider community.

If your organization is investigating or underway with AI-based initiatives, consider how HealthData Exchange can ensure strong integration moving forward across multiple systems and provider networks.

To find out more about NetDirector’s HealthData Exchange platform, please contact us or request a free demo.