A Data-Centric Approach to Healthcare Affordability
Jon Bray, Strategy Officer
One of the most pressing topics in the United States is the cost and availability of healthcare services. A 2017 report by CMS estimates a continued 5% annual increase in U.S. healthcare spending, amounting to almost 20% of the national GDP. We are on a mission to help hospitals and institutions create new streams of revenue while simultaneously helping researchers and scientists partner to find better treatments and cures for disease using anonymous and de-identified health data.
Many factors affecting the cost and efficiency of healthcare stem from data-management. The desire for clinical standardization — especially regarding the 10+ years-worth of records which hospitals are required to maintain — and a desire for expanded scope of services has been a contributor to the increased amount of mergers and acquisitions. The American Hospital Association (AHA) released an analysis in 2017 outlining many of the benefits to acquired hospitals such as a 2.5% reduction ($5.8 million) in annual operating costs, concluding, in part, that:
“The type of efficiencies that mergers create are often the only means to obtain meaningful cost and quality benefits.”
But are mergers the only way to see these kind of results? We believe that many of the key findings can be achieved by any hospital, regardless of potential for acquisition or current operating costs, by providing a better way to manage and monetize their most undervalued asset — clinical data. The main drawback to traditional data-management services is their high upfront cost. In 2017, UnitedHealthcare spent $550 million to acquire data and build analytic departments. Data brokers can provide a means to buy and sell data, but come with upcharge fees between 50-150% and leave the seller with no compensation.
We aim to eliminate these inhibitive upfront costs, allowing hospitals a means to monetize their data directly on the marketplace in a secure manner while maintaining HIPAA compliance. EMR companies have started paving this road already, Cerner EMR sold their data set for $70 million in 2017. The entry of hospitals to the market creates more liquidity and competitive pricing, reducing the overall cost of data. When the cost of data goes down, affordable pathways to innovation have room to flourish. For the first time ever hospitals can let data they already own work for them, take part in advancing scientific discovery, and become better equipped to help serve the patients and communities that depend on them.
In addition to a new revenue system we hope to prepare hospitals, providers, and other stakeholders for future advances in legislation and technology, including becoming TEFCA compliant and pushing for wide adoption of a connected, interoperable health care landscape. Data is the fuel that powers the rapid integration of information technology into the healthcare industry, it is both valuable and functional. We provide a means to make data more accessible and reasonably priced; an important step towards getting quality, affordable care to patients in the 21st century.
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October 11, 2017
Contact: Brian Plumb
New Marketplace Brings Health Data Buyers, Sellers Together In One Place
Platform allows health data owners to create new and multiple revenue streams.
Nashville, TN: An unprecedented new marketplace has been launched allowing buyers and sellers of de-identified health data to conduct transactions directly using a single platform.
The Health Exchange Market (THEM) helps health data buyers communicate, establish a fair market value for their de-identified health data and negotiate terms without the need for a third-party intermediary. Using THEM, owners can sell their de-identified health data multiple times, creating new sources of revenue which adds to their bottom line.
Building on Harvard’s Principles on Negotiation, THEM has created an algorithm that can determine true market value for health data based on industry, specialty, location, seasonality, and organization to provide companies with a benchmark of what their health data is worth and why. This helps both buyers and sellers feel confident that the data is being priced fairly.
Also, both buyers and sellers can be certain that their health data is protected. THEM follows strict security protocols when handling de-identified health data, having put policies and procedures so that the company is capable of conducting safe transactions of information that protects both the patients and the covered entity as defined under HIPAA. For example, we require that sellers strip all personally-identifiable information from their health data before making it available on the marketplace.
Why is THEM important?
Previously, when organizations wanted to sell their health data, their only options were to spend months trying to find buyers and negotiating a deal on their own, or using a data broker, which can generate significant administrative overhead and expense. THEM streamlines this process dramatically, making it easy for sellers and buyers to connect without adding significant additional costs to the process.
When they register, buyers and sellers fill out a questionnaire which captures their interests. Then, THEM’s “purposeful pairing” technology matches buyers and sellers based on the information they provide. Once the data has been captured, the system can provide additional suggestions based on keywords (e.g. “pharma”), ICD-10 codes and other relevant information.
Health data sellers pay nothing to participate in THEM and can sell their de-identified health data multiple times. Meanwhile, health data buyers can sign up, review data prices and communicate with sellers at no cost, paying 11% of the data’s sales price when they close a transaction.
“Our marketplace provides hospitals and other healthcare organizations with brand new revenue that they can then put back into their organization for improving the lives of the patients they serve,” said Collin Powell, CEO of THEM “Meanwhile, by using safeguards to remove all personally identifiable data, our members are allowing buyers to access to a wealth of health knowledge not otherwise available to them.”
To minimize transaction risk, THEM allows community members to rate their experiences with other members. If a buyer or seller gets low ratings from the community they may lose the ability to conduct transactions. This ensures that both sides can do business confidently with partners who conduct themselves with integrity.
ABOUT THEM: The Health Exchange Market (THEM) is a global bio-bank and repository for de-identified healthcare data, providing a commercial marketplace that allows health data owners to create new and ongoing revenue streams from existing data, and provides buyers with a smarter, cost effective solution to obtaining larger and more complete data sets from multiple sources. To learn more about THEM, write to email@example.com or visit us at www.thehealthexchangemarket.com.
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