What is holding hospitals back from using data analytics to make decisions that could potentially cure some of what ails the healthcare industry? A recent survey found that despite having access to these tools, eight in 10 managers reported utilization as negligible—despite evidence that analytics can lower costs and improve performance.
Released this month from Black Book Market Research, the study also found that among the 748 provider organizations 84% of C-Suite and board members use analytics "to a limited or minimal extent.” Among CFOs with implemented analytics and decision support programs, just 15% report meaningful utilization in creating financial forecasts or strategic plans.
“Besides occasional dashboard viewing, post-implementation analytics and business intelligence software and services go greatly underutilized, particularly observed in the survey responses from financially under-performing hospitals in 2019,” said Doug Brown, president of Black Book.
The healthcare analytics market is soaring, exceeding $14 billion spent in 2019 and expected to continue growing at a CAGR of 23.5% to $40 billion by 2024—and 95% of hospitals and physician group leaders currently have analytics, sharply up from 63% in 2016.
“The accessibility of integrated data and the surge of new technologies, which empower providers to analyze data more comprehensively, allow every healthcare manager to make strategic decisions and costs implications and measure goal progress analytics,” Brown said.
Exploring new ways to use data analytics is critical to meeting the demands of value-based care, said 93 percent of hospital and physician financial executives, which begs the question: Why aren’t they?
One reason could be not enough expertise. Only 2% of C-Suite respondents said they are budgeting and recruiting data scientists in 2020, although most new analytics tools don’t require a data scientist to use them; 92% of executives reported that they forget how to use these self-service analytics tools and 71% say they’re too busy to learn.
“Because analytics need to be customized for each hospital or medical group business problem, analytics are often seen as complicated and time-consuming,” said Brown.
Still, there is hope—89% of hospital C-suite and board respondents intend to invest financially in more analytics software and services in 2020.
For other findings from this Black Book Market Research study, read more here.