Predictive analytics seen as cost cutter by healthcare execs
A majority of executives in the healthcare industry say they believe predictive analytics will save their organizations money, according to a new report from the Society of Actuaries.
The organization conducted a survey of 223 health payer and provider executives in February, and 57 percent forecast that predictive analytics processes will save their organizations 15 percent or more over the next five years. About one quarter (26 percent) expect to save 25 percent or more over the next five years.
A huge majority of the executives (93 percent) said predictive analytics is important to the future of their business. Just under half (47 percent) of providers currently use predictive analytics or plan to begin in the next five years.
Despite the financial benefits from predictive analytics, 16 percent of healthcare executives still indicate that a lack of budget is the biggest challenge to implementation within their organization.
Among the other challenges of implementing predictive analytics in organizations over the next five years are regulatory issues, incomplete data, lack of skilled employees, too much data, lack of confidence in the accuracy of data, lack of sufficient technology, and lack of executive support.
The data underscores the value executives place on predictive analytics across both payer and provider organizations, the report said. The most valuable outcomes to predict using predictive analytics vary among providers and payers. Patient satisfaction was selected most among providers, while cost was selected most among payers.