Issue link: https://beckershealthcare.uberflip.com/i/247519
20 Keeping Up With Big Data, Predictive Analytics and Healthcare's Next Big Challenge Health Information Technology the Fortune By Helen Gregg A n oft-cited 2012 exposé in The New York Times revealed the extent of Target's data analytics capabilities. By analyzing customers' purchasing patterns, Target was able to identify, and market to, a major life change — pregnancy. Charged with identifying pregnant customers to allow for targeted marketing efforts to capture both their baby and household spending, statistician Andrew Pole analyzed purchasing patterns among customers on Target's baby shower registry. He discovered pregnant women in their second trimester purchase items such as unscented lotion and nutritional supplements much more frequently than the general population, patterns that allowed Target to send customers purchasing those items targeted advertisements for baby clothes and supplies. The story gained notoriety when Target sent baby-related advertisements and coupons to a 17-year-old based on her buying habits, identifying her as pregnant before she had a chance to tell her parents. Target has since denounced the Times article, and has asserted its data collection practices comply with all regulatory standards, including HIPAA. The Times article shows the potential of data analytics, says Graham Hughes, MD, CMO of SAS Center for Health Analytics and Insights. "It shows that although we have to be aware of privacy issues, predictive analytics gets it right," he says. tomer population tends to buy what products at what price sensitivity," says Dr. Hughes. "It's the same in banks; they use as much data as they can to assess your credit risk and determine which financial offerings make the most sense to you." When it comes to data analytics, the healthcare industry is just starting to catch up to other sectors that have been successfully using analytics for decades. "Other industries have spent a lot more time thinking about using analytics for competitive advantages and improved efficiencies," says Dr. Hughes. "But that's the first step of any 12-step program, right? You have to say you have a problem." These industries are able to use incoming data to make these projections because they have spent the past 10 to 15 years investing in the analytics infrastructure to be able to process this type of data, and developing both a team and a strategy to make the most of available information, says Dr. Hughes. "All of the Fortune 500 companies are either using data in this way or embarking on the journey make it happen," he says. Mainly through the widespread adoption and use of electronic medical records, healthcare now has what other industries from retail to banking have long enjoyed: access to large volumes of information about their customer base. "Banks have real-time trading information updated hundreds of times per second, retailers have real-time point of sale information," says Dr. Hughes. This information is currently being used to make predictions about consumer behavior that can serve as the foundation for business decisions. "A retailer is using data to understand which cus- This is a journey healthcare organizations have only just begun. Hospitals and health systems increasingly have access to large amounts of data about their patients, including data from EMRs, billing systems, electronic prescribing systems, health information exchanges and other similar sources. Additionally, the industry as a whole recognizes the potential in this data to provide actionable insights into population health, highrisk patient management, clinical best practices and other business insight that will become increasingly important as the industry moves toward value-based reimbursement.