Reducing Healthcare Wastage with Data Analytics

Healthcare providers are unknowingly pouring funds down the drain – and that’s because they can’t keep track of all the spillage. That’s where analytics plugs the gaps.
Visual analytics allow healthcare providers to see the whole story within their data. By knowing where resources are allocated and products/services consumed, facilities can see trends and uncover inefficiencies, empowering them to seize opportunities to limit and ultimately prevent wastage.
The government’s Health Safety and Quality Commission found that healthcare waste costs taxpayers $20 billion a year and if this was eliminated it would cut 15 percent off the national health bill1 . This is money that could be reinvested into the healthcare ecospace to support wider innovation, quality improvement and increased service offerings. Clearly, there is great potential for analytics to improve Australia’s current state of healthcare waste.
More data for more improvement
With vast reams of data being created by the Internet of Things (IoT), Big Data and wearable tech, healthcare organisations can leverage data from an ever-expanding range of sources to have a more complete view of their consumers in order to make data driven decisions. Removing the all too common ‘gut’ from decision-making to a more evidence-based approach is the fundamental aim of analytics.
The range of data is only set to increase. IDC found that total shipments of wearable devices will reach 214.6 million units by 20192 . It predicts there will be 28.1 billion IoT units by 20203. Incorporating data from these devices, both from its staff and its patients, will lead to many more exciting opportunities for insight and optimal service delivery as well as improved communication e.g., alerting, messaging, reminders, etc.
Qlik’s and HIMSS Analytics’ recent study of 400 healthcare organisations into data analytics found that many are using data to cut waste in patient care delivery. The study found 56% of healthcare organisations, the early adopters of BI platforms, improved patient care and greatly cut healthcare costs, while 48% could make faster and more accurate operational and clinical decisions.
Harnessing the platform effectively
The HIMSS Analytics Study also revealed that while data analytics has the potential to greatly reduce waste, the analytics strategy must be aligned with the healthcare organisation’s goals to be most effective. Complete organisational buy-in will ensure strong adoption and recognised accountability.
Robust data governance, product agility and scalability, merging of disparate internal and external data systems and an intuitive user interface are essential addons to ensure complete value is derived from the organisation’s investment; both of time and finances.
The user interface however, is most crucial to harnessing the business intelligence (BI) platform effectively. Healthcare organisations must appreciate that although important to an analytics culture, data is still just a piece to their puzzle. It’s the people who make decisions, and harness the value of that data. And simply mandating a tool will not force users to adopt it.  A lack of user adoption is the primary cause for 70 percent of failed projects, according to a study by Forrester Research so selecting a tool that encourages self-service and interactive use of the data is paramount.

The possibilities of data
Digital healthcare leverages the changing capacities of technology to offer more information than ever before. Healthcare providers can analyse vast amounts of patient data from multiple sources in order to make better decisions around patient care and treatment plans leading to improved outcomes.
By seeing the whole story in their data, healthcare organisations can identify and eliminate inefficiencies in their processes, from unnecessary diagnostics, to changing prescription patterns or reducing length of stay, thereby achieving greater cost and operational efficiencies, and ensuring patients get the right care the first time. And as a country, we’ll take a big step towards reducing healthcare wastage and improving the overall wellbeing of our population.

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Charlie Farah
Charlie Farah is Director of Market Development, Healthcare & Public Sector for Qlik Asia Pacific covering public and private hospitals and Government agencies. Charlie has 14 years’ experience working within the New South Wales health system. As Director of Performance Monitoring and Systems Improvement and Innovation for NSW Health, Charlie built new business intelligence solutions to address evolving opportunities and challenges facing the industries.