the promise of integrated healthcare: health information systems

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The Promise of Integrated Healthcare How can Health Information Systems Help? Bhargav Rajan, Research Analyst Healthcare July 31, 2014 © 2014 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

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The Promise of Integrated Healthcare

How can Health Information Systems Help?

Bhargav Rajan, Research Analyst

Healthcare

July 31, 2014

© 2014 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

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Today’s Presenter

� Industrial experience in biomaterials, tissue engineering, wound healing, implants and devices

� Tracking emerging technologies, competitive benchmarking and opportunity landscape, with expertise in:

� Medical devices and imaging

� Clinical diagnostics

� Innovations in healthcare systems and delivery

� Frost & Sullivan research publications (Most recent):

� Innovations in Home Medical Devices & Integrated Healthcare (June 2014)

� Technologies Enabling Home Medical Devices & Integrated Healthcare (June 2014)

� Top Medical Technologies for 2014 (February 2014)

� Advances in Smart Pills (October 2014)

Bhargav Rajan, Research Analyst

Frost & Sullivan

Follow me on: (Connect with social media)

https://www.linkedin.com/pub/bhargav-rajan/17/339/ab7

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Focus Points

� What is integrated healthcare (IHC)?

� What are the different IHC models?

� What is the need for IHC?

� IHC adoption - Drivers and Challenges

� 4 Pillars of IHC

� Health information systems - introduction and segmentation

� HIS - Drivers and Challenges

� Global Mega Trends and collaboration potential

� Roadmap - What to expect from HIS

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Healthcare Consumerism – Patient or Consumer?

or

� Are healthcare end users “Patients” or “Consumers”?

� Patients: Passive, uninformed, hands-off - implies that they are taken care of,rather than being actively engaged in the healthcare process.

� Consumer: Actively engaged in healthcare process; demanding; “consumerexperience” from other industries; interactive process

� Reducing gap between patient and consumer

Integrated Healthcare (IHC): The design, management and delivery of healthservices so that clients receive and perceive a continuum of health promotion, healthprotection and disease prevention services, as well as diagnosis, treatment, long-termcare, rehabilitation and palliative care services through the different levels and sites ofcare within the health system and according to their needs – WHO 2013

� Importance of IHC:

� Patient-centric system

� Services across the continuum of care

� Efficiency and transparency in services

� Consumer demands: Round-the-clock services, convenience, flexibility, freedomand mobility

� IHC Enabling features

� IHC Drivers and challenges

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Changing Healthcare Trends

Sphere of Innovation

Focus

Approach

Information Exchange

Dispensation

Decision Making

Objective

Partnerships

Traditional Healthcare Systems Integrated Healthcare Systems

Provider-centric healthcare model Patient-centric healthcare model

One-size-fits-all treatment Customized and personalized treatment

Unidirectional, unstructured Bi-directional, organized

Centralized and hospital-based De-centralized and community-based

Physician-expertise driven model Healthcare analytics-driven model

Treatment of disease Prevention of diseaseE

me

rgin

g T

ren

ds

Individual, physician expertise Collaborative, consultative model

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How is IHC Delivered?

Integrated Healthcare

Physician Hospital Organization (PHO)

Management Service Organization (MSO)

Group Practice without Walls (GPWW)

Health Maintenance Organization (HMO)

Staff Model HMO Group Model HMO

Network Model HMO

Individual Practice Association Model

HMO

Ve

rtic

al In

teg

rati

on

Horizontal Integration

• Merging of organizations and teams thatare specialized in different services.

• Clumping together similar teams

• Merging physician practice with hospitals,payers, healthcare providers, informationtechnology support and other specializedservice providers.

• Improving efficiency, scope of services andfinancial consolidation.

• Merging or consolidation of organizations at asimilar or comparable levels of services.

• Example: Outpatient clinics across geographies inorder to create a network of such clinics.

• Expand presence/footprint

• Optimize resource utilization

• Financial strengthening

• Managerial challenges

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The 4 Pillars of IHC

Source: Marino DJ (2012); Frost and Sullivan

Integrated Care Systems

Leadership

• Governance

Body

• Compliance

• Business

model

• Work Culture

Allied

Incentives

Clinical

Programs

Technical

Infrastructure

• Physician

Engagement

• Staff Support

• Performance-

tagged

Incentives

• Disease

Management

• Palliative care

• Population

Health

Management

• Tools and

Devices

• Content

Digitization

• Network and

Connectivity

• Interfaces

•PACS•EHR, EMR

•CPOE, RCM•Rostering

•Cloud•IoT•Big Data

•Biometrics•RFID/NFC•Apps and

software• Integration

•PDA, phones•RPM devices•mHealth•Medical devices

Tools & Devices

Interfaces

Information Exchange

Network & Connectivity

Enabling Infrastructure

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What are Health Information Systems (HIS)?

Health Information Exchange

Non-Clinical Information Systems

Revenue Cycle Management

Rostering and Scheduling

Administrative Information

Systems

Clinical Information Systems

Laboratory Information System (LIS)

Operating Room Information Systems (ORIS)

Pathology Information Systems (PIS)

Radiology Information Systems (RIS)

Health Information System

Electronic Medical Records (EMR)

Patient Portals

Health Informatics

Picture Archiving and Communication System

Source: Frost and Sullivan analysis

• $46 bn revenue

loss (2012)

• US market size:

$12 bn (2012)

• CAGR: 4%

• $23 bn market

• CAGR: 5 - 7%

• NA ($9 bn), EU ($7

bn) and APAC ($8 bn)

• > $250 mn US market

• CAGR: ~22%

• ~300 companies; 10%

hospitals own system

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HIS – Market ForcesD

rive

rs

Driv

ers

Re

strain

ts

Re

strain

ts

Long term: 4-5 years

Short term: 1-3 years

Need for improved decision support and

analytics Cost reduction, elimination of redundancy

and manual processes

Emergence of integrated healthcare systems and new business models

Need for efficiency and flexibility in workflow

Lack of standardization Interoperability Budget Constraints

Source: Frost & Sullivan analysis

Rapid advances in IT and ICT technologies power innovations

in health infrastructure

End-user Compliance

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Alignment with Global Mega Trends

CustomerFocus

Professional

Consumer

Industry FocusInformation & CommunicationTechnologies

Healthcare

I

Video Conferencing

Personal Health Programs

Patient portals

Fitness apps Community programs

Digital ImagingEHR

Web-MD services

Wellness apps

Remote Patient Monitoring

Physician assist software

ePayment gateways

Remote Specialist Services Diagnostics

PACS

II

III IV

• Mega Trends: Mega Trends are global, sustained and macroeconomic forces of development that impact business,economy, society, cultures and personal lives, thereby defining our future world and its increasing pace of change.

Connectivity & Convergence - Future of Mobility - Social Trends - Beyond BRICS - New Business Models - Bricks & Clicks – Urbanization - Health, Wellness & Wellbeing

D540-TI 11

Technology RoadmapAdoption of Health Information Systems

2014 2018 2019

Patient Portals

Electronic Medical Records

Virtual Community Support Groups

Predictive analytics

Population health informatics

� Increasing adoption of non-clinical, financialand administrative workflow systems

� Early adoption of clinical informationsystems

� Complete transfer to ICD-10 coding systems� Further adoption of clinical information

systems� Creating of national and regional health

information repositories

� Use of health analytics in framing policies,creating infrastructure, distributing supplies

� Predictive analytics, epidemic control,preparing for seasonal diseases

� Personalized healthcare services

Source: Frost & Sullivan Analysis

2011 2015 2022

Administrative Workflow Systems

Revenue Management

Health and Wellness

Applications

Meaningful Use Stage 1: 2011Data capture and sharing

Meaningful Use Stage 2: 2014Advance clinical processes

Meaningful Use Stage 3: 2016Improved outcomes

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The Last Word – Can HIS Ensure IHC?

� Adoption potential:

• NA, EU, APAC, ME

� Kaiser Permanente (Oakland, CA) –

• Largest integrated healthcare institution

• > $4 billion in 10 years for HIS

• 9.1 million users � 34 mn test views; 3.6 mn appointments; 15 mn emails; 15 mn e-prescriptions

� Investments by IT giants – Microsoft, IBM, Dell, Google

• VC funding $1.2 bn (2012); $2.2 bn (2013); $900 mn (Q1 2014) � ~ $5 bn since 2010

• GE Healthcare $2 bn between 2013-2017 towards data analytics, HER

• Google Ventures: $130 mn Series B in Flatrion Health - Big data in cancer imaging and diagnosis

• IBM Watson: $23 mn Series C in Welltok – Social Health Management

� Incentives by governments:

• Meaningful Use program: Stage 1 (completed in 2011), Stage 2 (2012-2014), Stage 3 (2015 - )

• Financial incentives for meaningful use of health information systems

• Data acquisition � Clinical use � Analyticsa

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Next Steps

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join our GIL Global Community

Join our GIL Community NewsletterKeep abreast of innovative growth opportunities

Phone: 1-877-GOFROST (463-7678) Email: [email protected]

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Please inform us by “Rating” this presentation.

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For Additional Information

Jennifer Carson

Corporate Communications

Healthcare

(210) 247-2450

[email protected]

Bhargav Rajan

Research Analyst

Technical Insights - Healthcare

(044) 6160-6666 Ext 4114

[email protected]

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Research Manager

Technical Insights - Healthcare

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[email protected]

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