Healthcare Analytics: Identifying Leaders and Key Trends

We review recently released report on Healthcare perceptions towards BI/Analytics and share key insights into who is leading healthcare analytics in different categories and what are the key dominant trends.

Healthcare is one of the key industries where Analytics is slowly but steadily making its way to the top of priority list. In the highly advocated push for "value-based care", Analytics are expected to play a central role in creating cost-quality transparency, eventually leading to efficient and effective healthcare.

Healthcare Big DataAs the health plans are strategically driving the shift from "services based payment" to "value based payment", providers are under increasing pressure to invest in Analytics and set up appropriate BI on their various functional processes. For many providers Analytics is a relatively new phenomenon (specially at the level of importance it has achieved today), and thus, the BI/Analytics market for providers is still in its early phase. However, the market already has some vendors leading the race to provide high-utility, high-performance tools providing actionable insights.

KLAS Research recently released a report summarizing the results of survey of provider perceptions towards BI/Analytics products and services in the areas of ACO(Accountable Care Organization)/value-based care, population health, Big Data and BI consulting. In the category of cross-industry BI/Analytics, SAP, IBM and Oracle were the leaders. In the niche of healthcare specific BI/Analytics, Optum and Advisory Board emerged as the winners. The third category, Analytic Tools offered by EMR(Electronic Medical Record) vendors, was led by McKesson, Epic and Cerner.

Healthcare Analytics Market OverviewBesides, the report also highlights a few important insights:
  • Paradigm shift from tools to solutions: Providers are shifting more consideration to vendors with healthcare specificity and mostly prebuilt products. Among 87 different vendors in this report, Optum, McKesson, and Advisory Board are considered most for ACO and population health analytics.
  • Big data not so big yet: Most providers feel that big data is vague but anticipate needing to consider its role in the future. Large, cross-industry BI vendors—like IBM, Oracle, and SAP—are thought of most for big data. Providers see staying power, not healthcare focus, as the key benefit of these vendors.
  • EMR(Electronic Medical Record) vendors jump in mindshare: 22% of providers indicate considering an EMR (large HIT) vendor for analytics. McKesson is being considered the most, boosted by their BI and MedVentive products. Cerner’s foray into population health is getting looks. The appeal of Epic comes from ACO use. Siemens and Allscripts trail behind in overall mindshare, but each still received early mentions for population health.
  • No one size or vendor fits all: Providers’ approach to analytics in the new paradigm involves multiple vendors and products. Still, only about one-third of providers in this study are considering BI consulting help. Only three vendor names were mentioned at least three times: Cerner, Deloitte, and Encore.

The complete report can be accessed at (available for purchase; key findings available for free):