October 22, 2008

Value-Driven Healthcare: Transforming the Environment with Business Intelligence

This article was written by Lisa M. Loftis, Intelligent Solutions, Inc. She writes that in a recent speech, U.S. Secretary of Health Michael Leavitt labeled the transformation to a value-based healthcare environment as both imperative and the most significant financial challenge that the country has ever faced. He defined the value-based movement as "a growing collection of people, organizations and governments who believe that the value of care should replace the volume of care." Achieving value-based healthcare is not be easy. The provider segment has evolved from a small, personalized, community doctor model into large, impersonal, multi- hospital organizations that span geographies. Costs are spiraling upward while billing practices are becoming progressively more disjointed, making it difficult for the average consumer to understand pricing structures. As healthcare providers heed Leavitt's call to action, it is increasingly clear that business intelligence (BI) will play a significant role in facilitating the transformation.