There is no better location to generate startlingly high bills than at a hospital. For totally rational reasons, healthcare providers invested large amounts of money on IT systems optimized to maximize billing opportunities. Sadly for hospital-based healthcare systems, this is the total opposite of what will fuel success in the future. From a revenue-generating view, ordering as many interventions and procedures as possible produced success in the old reimbursement type that is presently dying a painful death.
Even for patients with chronic conditions that use up 80% of healthcare resources, hospitalizations should make up for less than 1% of their life. However, the huge majority of health IT budgets has been focused on huge hospital-based health systems. In the swiftly growing population health-based ecosystem of the future, it is well noted that a hospitalization represents a miserable failure in most cases – something that should have been detected earlier or prevented totally that results in a high-risk, high-cost hospitalization.
One of the most surprising things from discussions of robotics, artificial intelligence, virtual reality, blockchain, big data, synthetic biology and more at the Exponential Medicine event was that the primary focal point is meeting patients where they are in the community instead of inside an institution. Simply put, focusing on the other 99% of the patient’s life that the traditional system largely ignores.
The most powerful exponential technologies are human focused
Previously, healthcare has been organized around medical technologies and providers which resulted in an uncoordinated and highly siloed system creating medical harm and waste. A healthcare system that doesn’t consider the realities of individuals’ lives will be sure to under-perform. A truly human-focused view makes a healthcare organization completely change their views.
It has been estimated that 88% of health money goes to Clinical Care even though it only affects 20% of health outcomes. Although most of the healthcare systems are tax-exempt and their mission statements highlight that they endeavour to be stewards of their community’s health, the proof is clear that most of are falling short.
Sadly for incumbent healthcare organizations, the majority are at risk of repeating history. The smallest healthcare organizations have defeated the understandable, although misguided, belief that if they spent billions of dollars on a huge EMR system it will position them for the future. Rather, they acknowledge that they must not only take on new capabilities centred on clinical care but also invest in the other three big barrels of health outcome drivers.