MedeAnalytics' Ken Perez Predicts Rapid Growth of Healthcare Data Analytics Market at Conference on Data Analytics in Life Sciences, Healthcare and Biotech Companies Federal healthcare spending, health reform, and technology wave of big data are main drivers of healthcare analytics growth estimated at 8-10 times that of overall economy
EMERYVILLE, Calif., May 3, 2013 /PRNewswire/ -- "Through 2017, the healthcare data analytics market is projected to grow 8-10 times as fast as the overall economy," Ken Perez, MedeAnalytics' senior vice president of marketing and director of healthcare policy, told a gathering of executives at the Data Analytics in Life Sciences, Healthcare and Biotech Companies conference held yesterday in San Francisco. "This is an exciting prospect, but we need to be mindful that big data by itself cannot reform healthcare," he cautioned. MedeAnalytics is a leading provider of healthcare performance management solutions.
Three Primary Drivers
In his presentation, "Data Analytics in Healthcare," Perez identified the three primary drivers of data analytics in healthcare: 1) the economic pressure caused by rising healthcare costs; 2) health reform with its "Triple Aim" of improving the experience of care, improving the health of populations, and reducing per capita costs of healthcare; and 3) the technology wave of big data and its sequels: information and predictive analytics.
"The challenging economic reality for our nation is that healthcare expenditures are the major driver of our federal government's debt," Perez told the audience. "We're slated to spend $2.8 trillion on healthcare this year in the U.S., over $8,000 per person, and almost 20 percent of our GDP. Obviously, these numbers, and the projected growth of healthcare expenditures, are not sustainable."
"Health reform (the Affordable Care Act), with its underlying Triple Aim as articulated by Don Berwick, former Administrator for the Centers for Medicare and Medicaid Services, includes five major healthcare delivery reforms—accountable care organizations, value-based purchasing, hospital readmissions reduction, bundled payments, and payment adjustment for healthcare-acquired conditions—which impose a multiplicity of performance measures in the spirit of pay-for-performance and fee-for-value on healthcare provider organizations," said Perez. "Given the complexity of our healthcare system, sustainable accomplishment of targeted reforms and progress on performance measures are only possible through robust application of healthcare data analytics."
Big Data Alone Cannot Help Healthcare
Perez concluded by reminding his audience, "It's not enough just to have the data and aggregate it. Big data need to be transformed into something relevant and actionable, driving changes in decision making and behavior," he said. "This is where the sequels to big data—information and predictive analytics—come into play. Information means that the data are distilled, summarized, sorted, prioritized, measured and/or visualized. Predictive analytics entails using historical information combined with statistics and algorithms to create actionable insights and results."
The conference, sponsored by Wilson Sonsini Goodrich & Rosati, was organized in partnership with PRIME and Genopole.
Founded in 1994, MedeAnalytics delivers performance management solutions across the healthcare system—including hospitals, physician practices and payers—to ensure accountability and improve financial, operational and clinical outcomes. For more information, visit www.medeanalytics.com.
For more information: MedeAnalytics, Inc.
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