While the size of healthcare data is hard to estimate, experts predict a data explosion that is projected to reach 35 zettabytes by 2020, a 44-fold increase from 2009.
So how much data is this really?
One zettabyte is equivalent to the data contained on about 250 billion DVDs. Multiply that by a factor of 35, and you’ll have an approximation of the amount of healthcare data that providers will have at their disposal in five years.
Sir, we have a data problem
The problem is that even though healthcare providers have more data at their disposal than ever before, data use has not kept pace with data growth.
The problem of data use by hospital systems was highlighted by the 2014 Most Wired Survey from Hospitals & Health Networks Magazine. The survey contrasted data use by “most wired” hospitals – hospitals that meet defined criteria for technology adoption – and the rest of the hospital industry.
Even among “most wired” hospitals, data use is low. In essence, the survey quantifies something industry insiders already know: healthcare has a wide data utilization gap.
Taming the (data) beast
To overcome this utilization gap and realize the benefits that data analysis can provide, healthcare professionals must understand two crucial points:
Data size does not equal data relevance
It is better to use the right data than to use more data
“Big” data does not guarantee good data. Data scientists spend a lot of time scrubbing data to remove the noise and identify the information that is actually relevant to the question being asked.
And just because you can add almost any data variable to a predictive model for direct marketing campaigns or network development, does not mean that you should. Data should only be added to a model if it enhances the predictive power of the model. If it does not enhance the predictive power of the model, it is not relevant.
The implications of these two ideas for healthcare organizations is clear: if you want to tame your data beast and discover meaningful insights, you need to make big data “small.”
Big data goes small
How do you make big data small? Again, using only the data that you need to answer the question being asked is crucial, but you also have to realize that the solution is not as simple as reducing the amount of data being used.
Often, healthcare providers discover that they simply do not have the right data to answer their business questions. Rather than using more of the wrong data, they can strategically combine in-house data with outside data sources that enhance the predictive power of the internal data. Again, this is not about adding data for data’s sake. Instead, the goal is to use the right data and to eliminate any extraneous data noise.
For example, healthcare providers have patient data such as names and addresses, while outside firms have data on the psychographics and lifestyles of the people living at those addresses. By combining the two data sources, you gain a complete picture of who your patients are and can identify patterns in the types of patients who visit your facilities.
Seeing patients in full color
Understanding who your patients are is extremely powerful. It allows you to better market to existing patient households and optimize your service lines and operations at specific facilities. It also allows you to predict potential new patient households, which can be used to drive market planning.
In essence, this patient insight can become the foundation for strategic decisions across the entire organization. But it is only possible if healthcare organizations recognize the need to move away from “big” data and instead focus on using the right data for each and every business question.
How is your organization using data? Are you using the right data to answer each question, or are you still drowning in a sea of data noise? Data-driven decision making is the future of the healthcare industry. Don’t be left behind.
Bill Stinneford is senior vice president at Buxton and advises healthcare organizations on applications of patient analytics. He has been a featured speaker at healthcare industry events, including SHSMD’s annual conference.
The views, opinions and positions expressed within these guest posts are those of the author alone and do not represent those of Becker’s Hospital Review/Becker’s Healthcare. The accuracy, completeness and validity of any statements made within this article are not guaranteed. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.
