How Analytics is used in the Healthcare sector

Ivy Dec 24, 2014 No Comments

Are you ready to make your career in Healthcare Analytics? Then this is just for you!

The healthcare industry is undergoing a radical transformation. From merely collecting data it is now turning towards extracting value-based insights. Improved patient care, reduction in costs and the prominent role of Public Health agencies, is driving increased application of analytics in healthcare.

The global healthcare analytics market estimated at $4,430.9 million ( 2013), is expected to reach $21,346.4 million by 2020. Growing at a CAGR of 25.2% (2013 to 2020), analytics in healthcare is predicted to touch $10.8 billion by 2017. (Market & Markets)

Source: Markets and Markets

Perhaps the best example of analytics driving the healthcare sector in recent times is the Ebola outbreak, where Big Data, mobile and social media streams are being analysed to predict the next Ebola outbreak.

Source: WHO

With a booming population and a fast-growing healthcare industry, the momentum in Indian healthcare analytics has taken off.  Patient data is being  anonymised, collected and processed in real time or near real-time to predict disease vectors, cut costs and make decisions.

Driven by primarily Predictive Analytics and Prescriptive Analytics, the market is dominated by healthcare providers, insurance companies and Government initiatives.

Increased benefits of analytics are evident as companies can alleviate risk, recognise new opportunities and initiate strategies for effective ROI.

Major end-users of healthcare analytics

• Healthcare payers, customer or patients
• Insurance
• Pharma
• Healthcare Providers – Hospital chains, Diagnostic services
• Healthcare Technology firms – healthcare analytics firms, software vendors, analytics service providers, IT vendors in healthcare analytics (applications, enterprise-level software, etc)
• World Health initiatives
• Government driven healthcare
• Academic and Research centres

Functional areas of Healthcare Analytics

While  descriptive analytics has held a major market share, with the following benfits fast becoming apparent, predictive analytics and prescriptive analytics are becoming the highest growing areas.

• Health surveillance
• Prediction of disease spread and incidence, and prevention
• Quality healthcare service delivery
• Regulatory compliance in the healthcare systems
• Optimisation of Health Insurance
• Reduction in healthcare costs, hospital readmissions and stays
• Improved Patient care (Clinical Analytics)
• Fraud detection
• Improved revenue cycle management
• Better health management – supply chain, workforce,
• Initiate innovations and research
• Drive Government policies and Practices

Techniques in Use (SMAC + Big Data + real-time)

Healthcare related organizations are in the process of collecting huge data, both internal and external. They are further leveraging the power of analytics in a SMAC and Big Data ecosystem to generate useful insights. The objective is to optimize operations, drive customer satisfaction and operational efficiencies for a competitive edge and achieve goals set out by Governing bodies and e-Governance initiatives.

Bottom line – Indian healthcare analytics is in a nascent stage with a huge demand for talented professionals. So, this is the right time to learn about big data, real-time analytics and disruptive technologies that are driving the healthcare analytics market.