Solutions that allow companies to make the best possible use of business intelligence and predictive analytics continue to be a dominant force in the business world. As firms in all industries deal with an ever-increasing amount of data – everything from customer spending information to corporate payroll data and countless other metrics – it becomes more important than ever to have software in place that can streamline and make sense of it all.
Predictive analytics, in particular, is one category within the overall BI and analytics universe that is gaining ground in a number of business sectors. According to EHR Intelligence, it can have a significant, positive impact within the healthcare industry, due to the needs and nature of such businesses. It will be wise for providers that are unfamiliar with the applications to first look at the precise meaning of predictive analytics and then see how it can be successfully adopted.
Laying out the basics of predictive analytics
As Business News Daily explains, predictive analytics' core purpose is simple – "combing through past information to derive models and analyzes that help project future outcomes." Former Columbia University professor and analytics expert Eric Siegel pointed out the bottom-line benefits of this solution in a recent interview with the source – these include reductions to risk and cost and improvements to customer service.
Additionally, predictive analytics allows for a more streamlined focus on process improvements, by isolating the metrics most important to a company's needs so that they can be quickly addressed.
What predictive means to healthcare
EHR Intelligence makes it clear that major healthcare providers, such as Kaiser Permanente, have long been acquainted with predictive analytics and employ it on a regular basis, for countless processes. But these solutions by no means have to be limited to the biggest names in the industry. Analytics platforms with predictive capabilities can be a manageable expense for small- and medium-sized healthcare providers, and the ROI they will provide is all but undeniable.
The source states that throughout the industry, accountable care is taking precedence over fee-for-service payment, which makes it critical for providers to have a strong idea of their clients' likelihood for injury or illness. Predictive analytics are therefore essential. Brett Furst, a healthcare analytics expert, elaborated on this in an interview.
"The risk is shifting to the providers, so there's a bit of inevitability to it," he said. "For the smart and really leading-edge health systems or even health plans, good analytics to understand where the variation and opportunities are is upon us."