Outsourcing tackles $300Bn skewed healthcare data crisis
NEVADA, UNITED STATES — Incomplete healthcare data poses significant challenges for healthcare systems, hospitals, and providers.
According to Jeff McDonald, CEO of Kythera Labs, transforming raw data into actionable insights requires specialized technical and subject-matter expertise.
Without this expertise, data analysis can yield skewed insights, costing the healthcare industry an estimated $300 billion annually.
The role and limitations of claims data in healthcare
Medical and prescription claims are vital sources of temporal data, summarizing patient healthcare events. However, claims data primarily serve reimbursement purposes, not analytical insights.
This dual-purpose use introduces biases and limitations, as claims data often come with embedded use rights restrictions or obfuscation requirements for privacy and business reasons.
McDonald said that this approach results in incomplete datasets, a phenomenon known as “missingness,” which can significantly impact the validity of insights derived from the data.
Addressing healthcare data quality issues
Healthcare and pharmaceutical companies often underestimate the extent and impact of missing data. Addressing data quality issues, such as missing data and incorrect hashing, requires a deep understanding of the root causes and effective mitigation strategies.
While some organizations attempt to compensate by purchasing additional data, this approach often requires advanced technical proficiency beyond the capabilities of most companies.
Benefits of outsourcing healthcare data operations
Outsourcing healthcare data operations can be a strategic solution to mitigate the pitfalls of incomplete data. By partnering with specialized third-party providers, healthcare organizations can:
- Improve data accuracy: Outsourcing ensures that data collection, preparation, and provisioning are handled by experts, reducing the risk of errors and missing data.
- Reduce operational costs: Outsourcing can lower operational costs by up to 70%, allowing healthcare organizations to allocate resources more efficiently.
- Ensure compliance: Outsourcing partners often adhere to stringent data privacy and security standards, such as HIPAA, ensuring that patient data is handled responsibly and securely.
Understanding the complexities of healthcare data, from contractual data sourcing to privacy-related obfuscations, is crucial for ensuring data quality. Whether for basic inquiries or advanced predictive analytics, access to high-quality data is essential for achieving reliable and actionable insights.
Outsourcing healthcare data operations can provide the expertise and resources needed to maintain data integrity, ultimately leading to better patient outcomes and more informed decision-making.
By addressing the hidden pitfalls of incomplete healthcare data through outsourcing, healthcare systems can enhance data accuracy, reduce costs, and ensure compliance, paving the way for more reliable and innovative healthcare solutions.
