westin copley place hotel, boston, u.s.a. facilitation of quality … · 2015-10-16 · yair babad....

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Joint Colloquium of the IACA, PBSS and IAAHS Sections Joint Colloquium of the IACA, PBSS and IAAHS Sections of the International Actuarial Association of the International Actuarial Association Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. 4 4 - - 7 May 2008 7 May 2008 HM6: Technology’s Facilitation of Quality Healthcare Joe Wolke Managing Consultant, IT Strategy: Forsythe Solutions Group Yair Babad Professor, Information and Decision Sciences: University of Illinois in Chicago Eliezer Geisler Distinguished Professor, Stuart School of Business: Illinois Institute of Technology

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Page 1: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS SectionsWestin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections of the International Actuarial Associationof the International Actuarial Association

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. ––

44--7 May 20087 May 2008

HM6: Technology’s Facilitation of Quality Healthcare

Joe WolkeManaging Consultant, IT Strategy: Forsythe Solutions Group

Yair BabadProfessor, Information and Decision Sciences: University of Illinois in Chicago

Eliezer GeislerDistinguished Professor, Stuart School of Business: Illinois Institute of Technology

Page 2: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare2 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

Agenda

• How technology got involved

• The Actuary’s dilemma

• The issue with Health Services

• What it will take to succeed

• The panel reacts

Page 3: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare3 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

It’s Technology’s Fault

• Facilitate change– Local to regional to global

– Remote capabilities

– Sharing of information

• Unreasonable expectations– Full empowerment

– Unlimited capacity

– Instant information

Page 4: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare4 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

Telemedicine (ICU)

Patient Portal

Cardiology Imaging

Patient Decision Aids

The Hype Curve

Page 5: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare5 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

Still Hot?Technologies• Handwriting

Recognition• Speech Recognition• Network Acceleration• Bluetooth• Server Virtualization• Biometrics• Natural Language

Processing• Medical Device

Integration• Information Lifecycle

Management

Applications• Enterprise Patient

Scheduling• Home Health Monitoring• Ambulatory Electronic

Medical Records• Patient Portals• Personal Health Record• E-Visits• E-Prescribing• Patient Decision Aids• Cardiology Imaging

Systems

Less than 2 years More than 10 years5-10 years2-5 years

Page 6: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare6 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

What the IT World is Doing

• Data capture

• Storage solutions

• Network and wireless communications

• Grid computing

• Security

Page 7: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS SectionsWestin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

Yair Babad

ActuarialActuarial ServicesServices

Page 8: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare8 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

• Data is the “blood line” for the actuary

• Do we have all the data we need?

• Can we use all the data we have?

• Can we glean from it all needed information?

• Can we do it effectively and efficiently?

Health Actuary, Data and Information

Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

Page 9: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare9 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

Some of the Needs …

• Frameworks– Reimbursement

– Clinical

– Prescription

– Healthcare

– Administrative

– Planning

– Decision support

Page 10: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare10 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

Some of the Needs …

• Usages– Pricing– Risk adjustment– Reserving– Coverage Planning– Financing– Projections– Data mining– … and much more

Page 11: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare11 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

• Patients– Characteristics– History– Genetics– Life style– Community

• Population– Characteristics– Services

Some of the Needs …

Page 12: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare12 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

• Services and providers– Provider organization– Healthcare providers– Plans, coverage and eligibility– Payers and reimbursement plans– Costs

• Government– All of the above– Controller and legislator

Some of the Needs …

Page 13: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare13 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

• Currently clinical episodes – single events

• Longitudinal information– Per patient

– Per treatment

– Per provider

• Rolled-up / down

• Aggregated

Interactions and Info Needs

Page 14: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare14 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

• In principle – we have it all (almost)

• In practice – we hardly have it– Multiple inconsistent / incoherent sources

– Different coding schemes

– Partial data

• Over-abundance of data

• “Islands” of information

• From episode to longitudinal data

Is The Data Available?

Page 15: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS SectionsWestin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

Eliezer Geisler

HealthcareHealthcare ServicesServices

Page 16: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare16 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

Challenges In Healthcare Delivery A. Slow Implementation Of Information TechnologiesA. Slow Implementation Of Information Technologies

• Despite benefits, information technology (IT) is not widely used by providers

• Only 15% of hospitals have some form of computerized physician order entry (CPOE) for dispensing medications

• Less than 12% of providers use computerized patient records

• Financial services spend 10% of revenue on IT—healthcare providers only 2-3%

Page 17: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare17 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

Challenges In Healthcare Delivery B. Problems In The Future Of The Healthcare SystemB. Problems In The Future Of The Healthcare System

• Increased hospital costs and continued inefficiencies

• Changing demographics• Continued push of innovations in medical

technologies account for only 15% of rise in costs

Page 18: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare18 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

Challenges In Healthcare Delivery C. Persistent Issues/ProblemsC. Persistent Issues/Problems

• Quality, safety. And patient empowerment issues

• Impacts of legislative initiatives on quality, safety, modernization and efficiency

• Increased competition among providers

• Political uncertainties

Page 19: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare19 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

The Value and Cost of Care

• New definition of value of care in terms of outcomes and benefits to patients

• Care is uneven in population of have and have nots in quality and access: hence we have different care systems in the country

• Best practices are slow to spread

Page 20: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare20 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

Why Some Solutions Fail• Complexity of the HC system creates barriers to

meaningful changes

• Providers, insurers, regulators, the medical industry all pushing in different directions

• Problems of HC delivery are global problems faced by all HC systems, regardless of services funding model

Technology is not the cause, nor the cure, for what ails the HC system

Page 21: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS SectionsWestin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

What Will it Take to SucceedWhat Will it Take to Succeed

Page 22: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare22 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

The Actuary’s Objective

• Consistently meaningful and informative answers to the questions posed to us

• Supported by quality data from all related multiple resources

• In effective and (time) efficient way

Page 23: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare23 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

What Health Services Need

• Improved cooperation among the actors in technology

• Give preference to technologies that help to improve access to care, quality of care, and consistency of care

• Evaluate healthcare technologies in more than just economic/financial measures (ROI)

Page 24: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare24 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

What Technology Can Do

• Improve diagnostics and therapeutics

• Allow interactions on a global scale, this helping with storage, networking, and grid computing

• Create innovations in both the clinical and the administrative sides of healthcare delivery

Page 25: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare25 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

What the IT World Can’t/Shouldn’t Do

• Set standards

• Create or enforce rules and policies for data stewardship

• Address the human side of security

• Determine who pays

Page 26: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS SectionsWestin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

DiscussionDiscussion

Page 27: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare27 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

What Does the Panel Think?

• Are Electronic Medical Record and National Health Network the Salvation?

• Can We Provide Information?

• What are the barriers to adoption of technology?

• What is an appropriate funding model?

• Will Health Services and Actuarial Services always be at odds?

Page 28: Westin Copley Place Hotel, Boston, U.S.A. Facilitation of Quality … · 2015-10-16 · Yair Babad. Actuarial Actuarial Services. 5/5/07 HM6: Technology’s Facilitation of Quality

5/5/07 HM6: Technology’s Facilitation of Quality Healthcare28 Joint Colloquium of the IACA, PBSS and IAAHS SectionsJoint Colloquium of the IACA, PBSS and IAAHS Sections

Westin Copley Place Hotel, Boston, U.S.A. Westin Copley Place Hotel, Boston, U.S.A. –– 44--7 May 20087 May 2008

Bottom Line

• Technology can only go so far

• The system is not the solution

• You can’t solve every problem now – but keep moving forward

• Whenever possible, address challenges strategically