Healthcare Informatics Enhancing Supply Chain Strategies Bruce Stanley

Healthcare Informatics Enhancing Supply Chain Strategies Bruce Stanley Mass Medic April 25, 2014 The Stanley East Consulting Group

Healthcare Informatics � Healthcare Informatics defined as: “The intersection of science, healthcare, commercial operations and technology”

Healthcare Informatics � When ◦ ◦ ◦ ◦ you hear these what do you think of? Order fill rate Line fill rate Complete order Perfect order OSD Open orders Back order rate Inventory turnover

Healthcare Informatics � What ◦ ◦ ◦ ◦ ◦ do you think of these? ICD codes NIH and CDC trending data Bioequivalence data GFT -Flu trend data ACA payment schedule Clinical trial data Hospital financial data Demographic data Re-admission data

Industry challenges and opportunities � Are these the new Supply Chain Metrics? � Predictive vs retrospective view � Industry learning to use analytic data upfront � Designing processes and products for current conditions –Electronic Health Records with hand held devices � Requiring fast analysis as it is occurring � Delay causes obsolescence and lost opportunity

Segments of Information � Informatics ◦ ◦ Clinical Operational Financial Innovation broken out into 4 subsets Informatics is more than just more data

Healthcare Informatics Clinical New treatments and product design Global disease trends and forecasts Research data Operational Can lead to newer processes Building new product that currently doesn't exist Streamline processes Synchronization

Healthcare Informatics Financial Informatics can provide faster analysis of payment’s process and effect of policy changes Informatics provides intense tracking that will be required under ACA implementation Required information for Sunshine Act compliance

Healthcare Informatics Innovation Building next generation processes ahead of the curve Eliminating technologies currently in use before they are obsolete Change now happens faster with informatics New products/applications created from informatics Resource for M&A

Healthcare Informatics � Is informatics just more data by another name? ◦ Informatics provides robust standardization ◦ Informatics can help organizations create the new, obsolete the old and bring competitive advantage to their firms

Healthcare Informatics � Why ◦ ◦ the confusion over Informatics? Misunderstood capability Data is intertwined and connected Informatics can be misleading without analysis High risk for ignoring trends

Healthcare Informatics � Question becomes…. How can Supply Chain and the business be enhanced with better upfront healthcare informatics?

Healthcare Informatics � Conclusion ◦ Supply Chain strategies are enhanced by bringing integrated data analysis into the forefront of operations ◦ Future products and companies are not in existence yet because the informatics dots are not yet connected. ◦ As Informatics grows in importance and complexity, skills required to understand the information will far exceed today’s skillsets

Healthcare Informatics � Environment requiring balancing act of pre-eminence i. e. which strategy rules? � In addition to providing care hospitals are bombarded by informatics � Strategy dictates which focus takes precedent � Leadership dictates informatics used � Informatics focus needs to be understood by manufacturers

Healthcare Informatics � In order to remain relevant informatics can play a key role in new product development, new markets, new industries or to jettison obsolete ones. � Informatics is now being taught as a business expertise not an IT function. � Business analysts use informatics to not only build business cases but to confirm trends, disease patterns etc.

Healthcare Informatics � With technology and data comes new informatics…… ◦ ◦ ◦ No boundaries on capability No restrictions on possibilities Expansion of environment Adds to confusion Requires knowledge and focus to sort

Healthcare Informatics � Leaders will chose to focus in one of the 4 areas � Order data becomes predictive health data � Line fill rates becomes e-Health � Collaborative metrics become integrated clinical care (ACO data) � Market data becomes real time personal healthcare data -EMR