By Julius Heil, President and CEO, Intalere
The old saying goes, “you can’t improve what you don’t measure.” Physician engagement is in many ways rooted in data and so is pretty much any process affecting your healthcare facility. I like to say there are two kinds of businesses – those that are gathering and leveraging analytics to improve, and those that don’t know they are extinct yet.
But a single clinical record is not enough. Even major investments in big data, machine learning and AI are not necessarily enough. For maximum positive impact, clinical and financial data must come together to understand value. Benchmarking is critical, and further, a single platform for financial planning, analytics and performance are optimal.
One of the biggest reasons for unrealized success is that organizations don’t create a well-defined digital health and analytics strategy.
The true value from analytics then comes from translating insights into action. Among the most critical struggles hospital supply chain executives face today is not truly knowing fair market prices for the goods they are purchasing on an everyday basis. This is due to a pervasive lack of information – or a lack of cost transparency – about the fair market value of medical and surgical supplies. This past year, we introduced Intalere OptiPrice Advantage, which utilizes medical surgical product pricing data submitted monthly by more than 650 hospitals from across the country to the Intalere OptiPrice Advantage database, which is refreshed daily.
Intalere OptiPrice Advantage works by taking closed receipt data (as purchase order (PO) data changes often) and categorizing it. Customers can see the EXACT price they are paying in comparison to other providers. They have the data points needed, through comparison to other hospitals/systems, as strong negotiating leverage. The data includes:
- Internal market share.
- Annual spend.
- System size.
- No data older than 7 months.
Within two weeks of implementation of this tool, one of our members was able to achieve a savings of more than $110,000 on drug-eluting stents. This is just one example of the opportunities available for savings on only one product.
Check out the latest video, Leverage Analytics, in our Flash Series and stay tuned in the coming weeks for more posts and videos about 12 Things Healthcare Must Achieve.
You can also download the executive briefing at Intalere.com.