With or without the impetus of regulations like the Affordable Care Act, the drive to reduce healthcare costs and improve patient outcomes is gaining momentum. While improving efficiencies is important, ELS providers such as Lab Information Systems (LIS), EMR Integrators, Outreach Connectivity Solutions and In Vitro Diagnostics (IVD) etc. recognize the value of laboratory data to the broader healthcare ecosystem in addressing top of mind issues such as patient engagement, integrated healthcare delivery and management of chronic conditions, among others.
There is consensus among all healthcare segments that a data driven approach to patient treatment and diagnostic regimens is the right and logical course to achieve these goals. ELS vendors realize that their transactional software and instruments generate volumes of data that they can help their customers use to drive improved outcomes and greater efficiencies. Finding ways to help healthcare providers further innovate patient care processes goes a long way in differentiating competing products.
While approaches vary, it is the strength of the underlying strategy that ultimately wins the day. Here is a look at the thinking behind some of the best strategies in creating larger market demand for ELS vendors.
Data isn’t a value-add, it is the value
At first glance it appears that data is the latest healthcare craze but it has always been the very foundation of medicine. Whether the task at hand is finding a new drug, diagnosing a disease or measuring a patient’s vitals, it is information that drives value.
Today’s health system buyers expect that their key partners have a data strategy which helps them succeed in the changing healthcare market. That market shift creates increased opportunities for ELS vendors, all of which call for an increased use of sophisticated analytics.
There are several examples of ELS vendors embracing this shift and using analytics to protect and increase market share for themselves and their partners. An example would be in companion diagnostics, a market which Research & Markets predicts will reach $16.24 billion by 2025.
Many LIS vendors are now improving the reporting capabilities for the data that resides in their enterprise transactional solutions. While reporting within the LIS silo is an important first step, the ability to build a platform that is focused on data management, data quality and reliability across disparate systems will be a key factor in using data to help customers drive better outcomes. Effective decisions can only be made if data from across the laboratory ecosystem (multiple enterprise solutions) are taken into account.
Innovation requires a strong command of analytics both as an external draw and as a profit-driving engine. Data is an asset and ELS vendors are beginning to realize its value.
Given the complexity of analytics and the range of areas in which it can be applied, vendors in the space are bringing a whole suite of solutions to the table in a scalable manner. One example is the Siemens Healthineers Digital Ecosystem, a digital platform for healthcare providers, IVDs, and other healthcare industry players.
In a recent press statement, Dr. Arthur Kaindl, Head of Digital Health Services at Siemens Healthineers said , “We are providing our customers with much deeper insights than previously possible into the key components that create both clinical and operational value. Such a major transformation can only be initiated by working together. Our partners are essential to the success of this platform, and ultimately to the success of transforming healthcare.”
The drivers for improved analytics
While rationales vary between ELS vendors, three main drivers affecting the industry overall are:
1) The healthcare shift to value-based purchasing wherein buyers require delivery of products that produce value (generally defined as better outcomes and savings) vs. just a result. It is a shift from descriptors to solutions.
2) The ongoing effort to avoid product commoditization. Everything from lab tests to diagnostic instruments are potentially in danger of commoditization making it critical for manufacturers to provide clients with sufficient product differentiation to support solid pricing and brand loyalty.
3) An ongoing trend wherein payers and regulators increasingly demand more data and evidence from laboratories on everything from impact on patient outcome to product quality. The need for data and analytics and new types of trials will continue to climb over time.
ELS vendors are thus aggressively seeking new data strategies and applications to meet a growing and seemingly insatiable market demand.
Three major applications of analytics
Given the race is on in earnest to innovate and create product differentiators, if not disruptors, the potential for an explosion of new applications is huge. At the moment, however, there are three major classes of laboratory focused applications and analytics:
1) Analytics (predictive and retrospective) focused on managing and improving patient health from a population level to an individual patient’s needs.
2) Analytical solutions to improve efficiencies and costs in everything from lab operations to client services as necessary to avoid penalties in this era of decreased reimbursement
3) Analytics aimed at improving internal business functions for ELS vendors, such as:
a) Sales and marketing – unprecedented and very granular information regarding competitive landscape, performance of instruments and assays, clinician ordering, and other competitive and business intelligence
b) R&D – such as novel clinical trials and evidence for FDA and payers
Cresting on the horizon are prescriptive analytics which are capable of varying degrees of treatment and curative outputs, from suggesting actions to a physician or other healthcare provider to prescribing treatment in automated and self-care healthcare environments.
Also, currently in use but emerging on the horizon in greater force are predictive analytics capable of a wide range of functions from predicting when medical equipment will require maintenance, repair or replacement to predicting which patients will progress in their disease and when.
Industry winners
It is already clear that the vendors in the ELS industry that evolve their focus on data and analytics will be the ones that remain competitive and will have the trust of their customers. With a holistic view on data with the laboratory ecosystem, ELS vendors have the opportunity to add a strong differentiator to their offerings. With the growing complexity in delivering healthcare today, ELS vendors that leverage their data assets will emerge as winners on the other side of the turn.
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.
