Industry and Firm Analysis

Ashley Leonzio BMIS 2056 – MIS Practicum Industry and Firm Analysis Healthcare Informatics Industry Introduction Informatics is the utilization of information technologies and information management tactics to enhance process efficiencies. According to wisegeek.com, healthcare informatics “combines the fields of information technology and healthcare to develop the systems required to administer the expansion of information, advance clinical work flow, and improve the security of the healthcare system.” More generally, this industry is the intersection of business, information science, and healthcare. Health informatics tools include not only computers, but also clinical guidelines, formal medical terminologies and standards, as well as information systems. These tools help support the areas of clinical care, health services administration, patient and provider education, and research. Role of IS in the industry The broad term “healthcare informatics” is used to describe an industry focused on reducing costs, increasing efficiency, and providing the best care possible. (In 2007, overall healthcare spending as a percentage of GDP was 16% in the United States!) Atypical to many, the healthcare industry faces regulatory and institutional pressures that force hospitals to fight tough battles to remain financially viable. They must increase quality and provide better access to healthcare while controlling costs at the same time. The role that IS plays in healthcare is increasing data availability and transparency to generate data-driven methods to improve healthcare research and practice. IS applications are redefining traditional relationships between providers, payers, and patients and helping hospitals remain financially secure. According to PricewaterhouseCoopers’ list of top 10 healthcare issues for 2010, IS also plays a major role in regulatory compliance. In last several years, there have been multiple ,[object Object]

Patient Protection and Affordable Care Act (PPACA) of 2010

The American Recovery and Reinvestment Act (ARRA) of 2009

The Health Information Technology for Economic and Clinical Health (HITECH) Act of 2009, a.k.a Meaningful Use (MU)

Reimbursement ReformFor example, IS will certainly play a major role in the HITECH Act. One particular requirement of this act is that “In the case where a provider has implemented an EHR [Electronic Health Record] system, the Act provides individuals with a right to obtain their PHI in an electronic format (i.e. ePHI). An individual can also designate that a third party be the recipient of the ePHI. The Act provides that only a fee equal to the labor cost can be charged for an electronic request.” In summary, IS most definitely plays a major in the healthcare informatics industry. This is evident by the increase in college and universities providing specific degrees in this area as well as the regulatory compliance acts enforcing the use of technology in healthcare stated above. Aspects of the field Beginning in the 1990s with new investments in IT, faster computer processors, the introduction of mainstream email, and the affects eCommerce, the productivity of the U.S. workforce has essentially doubled since the 70’s and 80’s. Unfortunately, healthcare sector has lagged behind this shift in productivity until the 2000’s. One possible reason Stephan Kudyba, the founder of Null Sigma, Inc suggests is that this lag could be attributed to most activity in healthcare and healthcare services being paper based (e.g. charting patient records). Kudyba notes that paper and handwriting can be eligible, lost, or just simply cannot be analyzed. In line with Kudyba’s analysis, one major focus in the healthcare informatics industry is digitizing paper based resources into computerized information. This is being accomplished though means such as electronic health records (EHR) and computerized physician order entry (CPOE). Once digitized, this information can be used for billing, scheduling, and research. Another focus many firms are taking is the development of automated decision support systems for healthcare. With increasing access to electronic data, hospitals are able to analyze the data like never before. For example, McKesson Automation’s Automation Decision Support (ADS) utilizes data from 15 different categories to compare the dispensing profile of each nurse to a diversion profile to detect narcotic diversion. One final example of industry focus is on that of automating patients’ medical history. The Portland, Oregon VA Hospital has introduced a computer based system that operates much like that of an airline kiosk. The system checks patients into their appointments, verifies insurance information, and walks the patient though their medication reconciliation. Industry Trends and Issues According to healthcare-informatics.com, the 2010 trends and issues in the healthcare informatics industry are: ,[object Object]

HITECH: Meeting regulatory compliance is forcing non-clinical projects to the backburner. Once work on CPOE and data sharing is complete, hospitals will be able to focus on projects such as business intelligence and asset tracking. This could become troublesome for firms providing non-clinical products and services.

Clinical Informaticists: With hospitals racing to meet HITECH requirements and demonstrate meaningful use with EHR and CPOE systems, hospitals will want clinical informaticists with medical, nursing, and pharmacy backgrounds to participate in IT projects.

Data Infrastructure: Experts say the need for robust data infrastructures to support performance improvement and transparency is growing. Creating these infrastructures is complex and difficult as there is not much precedence in this area.

Reimbursement Reform: The industry seems to know that reimbursement reform is coming, but when or how is still yet to be seen. Industry leaders see the value in early preparation for changes to come.

Industry and Firm Analysis

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Industry and Firm Analysis