Moving from Data Capture to an HIT Infrastructure
The medical industry wastes more than $910 billion annually on avoidable, identifiable issues like administrative inefficiency, lack of coordination, unnecessary care and provider errors. Outdated technology and non-interoperable systems contribute significantly to that total by making the exchange of patient data an unnecessarily difficult and slow process.
Last year, a large self-insured employer requested a meeting with an FTI Consulting client which was in the process of implementing a clinically integrated organization. The employer, tired of ever-rising health care costs, wasn’t going to wait for the health system to transform itself. The employer’s CEO pulled no punches in demanding an immediate $1M reduction in annual healthcare expenses or he would move his book of business to another healthcare organization. While the health system ultimately reached a more tenable agreement, having to accept this Faustian bargain was not something that either the employer or the health system wanted to repeat.
In a second situation the CEO of a multi-hospital health system was asked to consider managing the population of a large self insured employer at a fixed fee. The CEO did not have the information necessary to evaluate the proposal, given the lack of population management tools. He promised his leadership team that he would never again be caught in a position of not being able to evaluate and consider an opportunity to provide care to an employer in his community. In both of these cases the health system CEOs found themselves, like many of their peers around the country, struggling to transform their businesses without right tools, adequate infrastructure or the skills necessary to manage populations.