IDC MarketScape: U.S. Healthcare Provider Clinical and Financial Analytics Standalone Platform Vendor Assessment

Transcription

1 IDC MarketScape IDC MarketScape: U.S. Healthcare Provider Clinical and Financial Analytics Standalone Platform Vendor Assessment Judy Hanover THIS IDC MARKETSCAPE EXCERPT FEATURES ARBORMETRIX IDC MARKETSCAPE FIGURE FIGURE 1 IDC MarketScape U.S. Healthcare Provider Clinical and Financial Analytics Standalone Platform Vendor Assessment Source: IDC Health Insights, 2015 April 2015, IDC Health Insights #HI255139e

2 Please see the Appendix for detailed methodology, market definition, and scoring criteria. IN THIS EXCERPT The content for this excerpt was taken directly from IDC MarketScape U.S. Healthcare Provider Clinical and Financial Analytics Standalone Platform Vendor Assessment (Doc #HI255139). All or parts of the following sections are included in this excerpt: IDC Opinion, IDC MarketScape Vendor Inclusion Criteria, Essential Guidance, Vendor Summary Profile, Appendix and Learn More. Also included is Figure 1. IDC OPINION The U.S. healthcare provider analytics market has experienced rapid growth and change since the introduction of accountable care with the Patient Protection and Affordable Care Act (PPACA) of Analytics are clearly a critical tool that will allow health systems to understand and respond to the business model change and disruption of accountable care, and many types of analytics models and tools will likely be useful to providers. This IDC MarketScape report focuses on analytics platforms that allow providers to examine clinical and financial data together and to use this data to provide actionable advice for optimizing delivery of care. The platform approaches evaluated in this MarketScape include enterprise data warehouses (EDWs) and big data analytics platforms that enable end users to employ multiple analytics applications, including tools supplied by the platform vendor, as well as those that may be offered by third-party software vendors and tools and capabilities for providers to develop homegrown analytics models running on the platform. Among these platforms, there is significant variation in the approach, underlying technology, ease of use and user interface design, available tools, licensing models, and system flexibility. The ability of platform suppliers to service customers and support their needs through technical support and account management also varies. With these considerations in mind, it is not surprising that the qualities defining today's market share winners may not be those of future leaders. This study is designed to offer healthcare providers guidance on which analytics platform vendors serving the industry are best suited for consideration when evaluating an initial investment, replacement, or enhancement to analytics capabilities. This IDC MarketScape, in addition to vetting customer references to verify vendor claims, considers other key criteria: Provider-oriented product design, approach, platform technology provider market knowledge, number of customers, and stability of the vendor Deployment capability, time to market, and usability of the data management tools and analytics models Cost relative to value and ROI from analytics approaches Breadth of functionality and functionality flexibility, agility, and self-service capabilities 2015 IDC Health Insights #HI255139e 2

3 In This Study This IDC MarketScape provides an evaluation of the leading clinical and financial analytics platforms for the U.S. healthcare provider industry. IDC MarketScape reports are designed to identify factors conducive to success in a particular market, both long term and short term, and then assess vendors participating in the market against those factors. The evaluation is based on a comprehensive framework that included both qualitative and quantitative metrics, as well as end-user feedback, and then provides vendors with market positioning relative to or compared with other market participants. This particular study provides a vendor assessment of the leading clinical and financial analytics platforms that are offered to hospitals and health systems in the United States. Situation Overview Historically, hospitals relied on their core hospital information system to provide reporting and analytics capability and focused mainly on financial reporting based on charges and billing data, as well as clinical data discerned from charges. With the introduction and widespread adoption of EHR over the past five years, structured and unstructured clinical data is now available for use by hospitals in analytics platforms, and hospitals have worked quickly to incorporate clinical data into combined clinical and financial data warehouses to address the cost and quality concerns of accountable care. Most hospitals have experienced failed attempts at enterprise data warehouses to serve their ongoing analytics needs in the past, but these attempts often failed because of the multiple, disparate hospital IT systems that gather data, the long process to build warehouses and the large investment required, the heterogeneity of their data structures, and the inherent complexity of clinical data. Past systems struggled to look at clinical and cost data side by side because of delays or unavailability of claims data, and variance between cost and charge data in the hospital due to complex contracting. In the past few years, there has been an emergence of specialty clinical and financial analytics solutions that address the problem of assembling data from different clinical and administrative data sources, take advantage of newly available clinical data from EHRs and claims data from payerprovider collaborations, and work to normalize and scrub this data for use in analytics. Analytics have clearly become a critical tool that will allow health systems to understand and respond to the business model change and disruption of accountable care. In addition, the availability of cloud deployment has lowered the up-front investment required with the current generation of analytics platforms and made hospitals more inclined to invest in new analytics technology, while big data technology has allowed providers to get analytics up and running more quickly with late binding data models and better performance. As a result, hospitals are investing in analytics and beginning to see a return on their investment. IDC Health Insights estimates that the combined annual growth rate in the analytics market from 2010 to 2020 will be in the 8 11% range; this places analytics among the top areas of spending growth for hospitals and health systems during this decade. This attractive growth rate has led to numerous new products joining an already crowded supplier landscape. This IDC MarketScape report focuses on analytics platforms that allow providers to examine clinical and financial data together and to provide actionable advice for optimizing delivery of care. Key findings from the report include: Clinical and financial analytics take many forms. This report examines platforms that allow providers to approach analytics in multiple ways, with agile tools that may include clinical and financial analytics, text and data mining, population health analytics, cost and cost accounting 2015 IDC Health Insights #HI255139e 3

4 analytics, performance and quality management analytics, and dashboards, as well as data exploration tools that can be applied to as-yet-undiscovered questions. This report examines the flexibility of analytics platforms as well as the strength and weaknesses of individual analytics applications available on the platform. No analytics solution will meet all needs out of the box. Successful analytics programs will develop and nurture platforms that assemble and manage data, offer tools to ensure data quality, and offer applications that allow providers to explore and assemble data on-demand into analytics models that meet business needs, whether they are long-established business needs or spur-of-the-moment questions. The only valuable analytics are actionable analytics. Analytics are only valuable if they make the right information available, at the right time, at the point of decision making. Solid data and data management approaches are the foundation of analytics platforms, but the rigor of data integrity processes must be balanced against the need for fast time to market in the rapidly evolving accountable delivery market. IDC MARKETSCAPE VENDOR INCLUSION CRITERIA IDC frequently has unique visibility into vendor selection processes within hospitals and health systems through its clients and contacts in the industry. To be considered for inclusion in this study, clinical and financial analytics platform suppliers must have been significantly evaluated for purchase within a recent deal with which IDC is familiar. Only standalone analytics vendors were considered; analytics platforms that are solely available as embedded technology within a health information system or EHR were excluded from this report. Further research and due diligence were then conducted to narrow the list of vendors to only those that had won deals and that IDC viewed as legitimate contenders for future deals within the healthcare provider space. Vendors and products are evaluated on the basis of their ability to serve the largest participants in the market, as well as the midmarket and smaller players. The vendors and products selected for evaluation in this study are: The Advisory Board: Crimson Allscripts: EPSi ArborMetrix Explorys Health Catalyst IBM: Advanced Analytics McKesson: Performance Analytics Optum: Optum One Oracle: Enterprise Health Analytics Premier SAP Verisk Several other analytics platform vendors were invited but are not covered in the report; these included Caradigm, Dimensional Insight, MicroStrategy, SAS, Truven, and Wellcentive. These suppliers did not meet the inclusion criteria for the report IDC Health Insights #HI255139e 4

5 ESSENTIAL BUYER GUIDANCE The analytics platform market is among the most confusing to health IT buyers. It is difficult to classify many solutions and to separate the platform capability from the toolset in many vertical provider analytics offerings. Buyers need to consider not only the toolset and its fit to their current business need when buying analytics solutions but also the platform and its agility and flexibility when it comes to meeting the demand of future business model changes. Some suppliers may offer tools that seem to meet needs, but buyers doing their homework will find the underlying platform is a one-off solution with limited capabilities. Other suppliers seem focused on tools, but the underlying platform is actually flexible and extensible and can be expected to deliver value on its own with the tools available now as well as future and third-party tools. Still other suppliers offer robust platforms with few tools and a lot of valuable APIs and horizontal or nonspecific tools, making analytics offerings more self-service. Providers need to understand their need for platform and/or specific toolsets and the alignment with their available data science resources when making analytics platform purchasing decisions. Providers should clearly articulate, quantify, and document the organization's current analytics needs and future business goals to assess the organization's ability to take on clinical/financial analytics. As accountable care initiatives advance, the ability to look at clinical and financial data together on the same platform, dive deeper into costs of operations, and leverage analytics in decision making will become vital to success. Additional buyer guidance includes: Carefully assess delivery model. Consider choosing analytics offerings that are offered as software as a service (SaaS) to gain some of the advantages of the 3rd Platform. This will enable flexibility and agility as well as access to data management services from the supplier and can support collaboration with other healthcare organizations on the platform. The cloud analytics offerings in this MarketScape are offered by service providers that understand the constraints associated with handling HIPAA-protected data and the unique demands of healthcare compliance. Build policies for working with analytics. As the organization begins to use information from analytics to support more of its operations, data scientists and other trained analytics expertise can be in short supply. Hospitals and health systems should organize around resources, whether they are in individual departments or centralized, to enable effective utilization of analytics platforms and tools. Seek out innovation. Accountable care is coming fast, and risk-based contracting is increasingly prevalent. As providers seek to best manage operations, processes, and costs to deal with these business challenges, analytics are a core capability. Managing these well, and adapting to change as it comes, requires innovation. Innovative suppliers that seek customer partners should be sought out to gain competitive advantage from analytics programs. Codevelopment and collaboration opportunities can help organizations gain a foothold in new analytics techniques and build a culture of innovation. Set key IT goals for analytics. Most healthcare IT organizations implementing new analytics platforms experience a deluge of requests for department- and specialty-specific analytics tools and capabilities. The pace of business model change means that it can be hard to prioritise. IT departments should seek analytics platforms that offer tools that will allow end users some component of self-service and seek to develop reusable tools that make the most of available data when building out analytics within the organization. To ensure that the 2015 IDC Health Insights #HI255139e 5

6 organization captures value from new analytics platforms, planning the transition to the platforms and setting goals for delivery of tools should be part of the process. Continue experimentation and develop best practices related to analytics. Each provider IT organization will need to experiment to determine the analytics approaches that are best suited to the business needs and the skills of staff and end users. The transition will take time, and organizations should allow for experimentation as best practices emerge. Connect analytics to other new technology investments. Analytics don't deliver value on their own; they need to be actionable. Analytics environments need to be embraced as an extension of existing clinical and decision support systems, as well as other new technology investments like mobile apps and dashboards. Ensure that users can dynamically access analytics resources via a self-service portal and service catalog and that results from analytics are incorporated into workflows and decision-making processes to create value whenever possible, even when hurdles exist. VENDOR SUMMARY PROFILES This section briefly explains IDC's key observations resulting in a vendor's position in the IDC MarketScape. While every vendor is evaluated against each of the criteria outlined in the Appendix, the description here provides a summary of each vendor's strengths and challenges. ArborMetrix ArborMetrix was founded in 2011, has 45 employees, and is headquartered in Ann Arbor, Michigan The company offers a cloud-native analytics platform in use by 41 clients with 282 sites. The company has its roots in surgical data and analytics, with deep specialty-specific surgical analytics and a focus on cost containment and ROI under accountable care in these areas. ArborMetrix cloud-based analytics has three core modules: EpisodeMetrix, RegistryMetrix, and SurgicalMetrix. EpisodeMetrix offers insight into cost drivers and variation in acute and specialty care procedures. RegistryMetrix offers a specialty-specific clinical registry and counts many collaboratives and societies among its clients, focusing on specialty- and procedure-specific quality metrics and benchmarking. SurgicalMetrix is even more tighly targeted at surgical specialties within the acute care setting, with an emphasis on providing performance measurement analytics and helping these clients improve patient care, productivity, and margin. ArborMetrix is positioned as a Major Player in this MarketScape due to its strong private cloud platform, its architecture, and its approach and success in achieving ROI for clients. Strengths While ArborMetrix is an emerging vendor in the enterprise market, it is well positioned as a result of its performance in the surgical specialties among its initial target market. ArborMetrix's tight focus on the surgical specialties gives it a good opportunity to provide ROI to clients in a high-opportunity area of the health system, and its cloud platform, market expertise, and the value the solution deliver to clients score high marks. The real-time solution is highly rated by customers for delivering clinical insights, which drive meaningful improvements in best practices and care delivery. Challenges ArborMetrix is a new entrant to the market its tight focus on the surgical specialties means many of its customers are departmental, and an enterprise approach to data integration is not chosen by its customers. Also, because of the siloed nature of the surgical data the product uses, data aggregation 2015 IDC Health Insights #HI255139e 6

7 is not always automated and some manual data entry is employed by customers. As the product grows to include multispecialty and enterprise implementations, it is clear it will also need to grow its data management practice, but the platform and toolset provide a strong basis for this growth as the product matures. APPENDIX Reading an IDC MarketScape Graph For the purposes of this analysis, IDC divided potential key measures for success into two primary categories: capabilities and strategies. Positioning on the y-axis reflects the vendor's current capabilities and menu of services and how well aligned the vendor is to customer needs. The capabilities category focuses on the capabilities of the company and product today, here and now. Under this category, IDC analysts will look at how well a vendor is building/delivering capabilities that enable it to execute its chosen strategy in the market. Positioning on the x-axis, or strategies axis, indicates how well the vendor's future strategy aligns with what customers will require in three to five years. The strategies category focuses on high-level decisions and underlying assumptions about offerings, customer segments, and business and go-tomarket plans for the next three to five years. The size of the individual vendor markers in the IDC MarketScape represent the market share of each individual vendor within the specific market segment being assessed. IDC MarketScape Methodology IDC MarketScape criteria selection, weightings, and vendor scores represent well-researched IDC judgment about the market and specific vendors. IDC analysts tailor the range of standard characteristics by which vendors are measured through structured discussions, surveys, and interviews with market leaders, participants, and end users. Market weightings are based on user interviews, buyer surveys, and the input of a review board of IDC experts in each market. IDC analysts base individual vendor scores, and ultimately vendor positions on the IDC MarketScape, on detailed surveys and interviews with the vendors, publicly available information, and end-user experiences in an effort to provide an accurate and consistent assessment of each vendor's characteristics, behavior, and capability. LEARN MORE Related Research Perspective: Taking Commercialization One Step Further - Health Catalyst and Allina Announce Risk-Based Analytics Partnership (IDC Health Insights #HI253623, January 2015) Business Strategy: The Current and Future State of Decision Support in U.S. Hospitals (IDC Health Insights #HI251698, October 2014) Business Strategy: Getting to Goal - The Role of Cost Accounting in U.S. Health Systems' Transformation (IDC Health Insights #HI251771, October 2014) 2015 IDC Health Insights #HI255139e 7

8 Synopsis This IDC study focuses on analytics platforms that allow providers to examine clinical and financial data together and to use this data to provide actionable advice for optimizing delivery of care. According to Research Director Judy Hanover, IDC Health Insights, "Analytics are clearly a critical tool that will allow health systems to understand and respond to the business model change and disruption of accountable care, and many types of analytics models and tools will likely be useful to providers." This study is designed to offer healthcare providers guidance on which analytics platform vendors serving the industry are best suited for consideration when evaluating an initial investment, replacement, or enhancement to analytics capabilities IDC Health Insights #HI255139e 8

9 About IDC International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make factbased decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Global Headquarters 5 Speen Street Framingham, MA USA idc-insights-community.com Copyright Notice Copyright 2015 IDC Health Insights. Reproduction without written permission is completely forbidden. External Publication of IDC Health Insights Information and Data: Any IDC Health Insights information that is to be used in advertising, press releases, or promotional materials requires prior written approval from the appropriate IDC Health Insights Vice President. A draft of the proposed document should accompany any such request. IDC Health Insights reserves the right to deny approval of external usage for any reason.