Hospitals plan to boost investments in clinical analytics by 17%
Whether you’re talking about predictive, prescriptive or just plain old analytics, the healthcare industry is gearing up to become more information-driven. The ability to better understand care delivery, payment models and reimbursement, even operations hold considerable promise to drive cost out of the system.
But getting there will also require big investments in analytics software systems. Exactly how much hospitals have to spend to remain competitive, however, is a looming question.
New findings from BCC Research suggest that hospitals spent $6.2 billion on analytics in 2016 and will increase that to $7.2 billion by the end of 2017, according to a report overview.
While that may appear to be a reasonable increase, hospital executives budgeting for analytics purchases should also know that by BCC projects that by 2022, healthcare organizations will invest nearly $15 billion annually— meaning hospitals will collectively spend about 15 percent more for the next five years.
The two largest groupings of analytics technologies are, of course, clinical and financial. HIMSS Analytics determined in a September 2017 Clinical and Business Intelligence Essential Brief that only about half of healthcare entities are using clinical intelligence tools today.
More have already deployed business intelligence programs, however, for revenue cycle, financial performance and operational intelligence to glean insights about supply chain and patient satisfaction.
Among those using clinical intelligence, meaningful use constituted the lion’s share of reasons for doing so. Improving patient outcomes and reducing readmissions are also prominent reasons, HIMSS Analytics said, as are population health and disease management.
Indeed, hospital investments into both clinical and financial analytics are poised to expand, BCC Research said.
BCC predicted that hospitals will spend 17.7 percent more through 2022 on clinical analytics, growing that particular segment from $2.8 billion today to $6.2 billion.
Likewise, healthcare organizations will ramp up spending on financial analytics during the same timeframe by 11.9 percent, from today’s $3.0 billion to some $5.3 billion.