In this Article
By: Anna Giorgi
The healthcare industry generates a tremendous amount of data. According to healthcare industry analysts, healthcare represents about 30% of the world’s data volume. This data, which includes clinical reports, lab results, disease registries and financial records, holds key information about the utilization of healthcare systems and the people they serve.
While hospitals produce about 50 petabytes of data (one petabyte = one quadrillion bytes) annually, about 97% of that data goes unused, reports the World Economic Forum (WEF). However, this gap is slowly closing, says the WEF. More often, decision-makers in healthcare management and healthcare administration recognize that data analytics can help them make informed decisions in key areas such as patient care, resource allocation and cost containment.
Why data analytics skills matter to future healthcare administrators
Data analytics describes the techniques used to gather, organize and analyze raw datasets to discover patterns, trends and other types of insights and conclusions. To manage and utilize this data, many healthcare systems and consulting firms employ professionals in healthcare informatics who focus on compiling and managing data for practical use.
Data analytics describes the techniques used to gather, organize and analyze raw datasets to discover patterns, trends and other types of insights and conclusions.
However, hospital administrators and managers also utilize data analytics as they fulfill responsibilities related to planning, directing, analyzing and coordinating healthcare services. Future healthcare administrators must be prepared to develop and maintain core data analytics skills so they can interpret this data to make educated decisions and projections related to healthcare services.
According to the Healthcare Information and Management Systems Society (HIMSS), “As healthcare becomes increasingly digitized, data analytics will only grow more crucial in harnessing these digital tools and information sources to improve patient care and outcomes in both the clinical and community setting.” As the focus on healthcare data increases in the coming years and beyond, future healthcare administrators will need to utilize data analytics skills to fulfill their roles in a changing healthcare landscape.
What future healthcare administrators need to know about data analytics
If you’re a future healthcare administrator, you’ll need the knowledge and skills necessary to juggle a broad scope of priorities related to efficient and effective healthcare management. While you won’t have to solely focus on data analytics skills in your education, you will need to understand core concepts about data analytics and the way it is used to succeed in your job.
Knowing the type of data you need to make an informed decision related to a specific healthcare administration issue is key. The following types of data analytics are relevant to healthcare applications, according to the Harvard Business School:
Descriptive analytics
Descriptive analytics, considered the most basic form of analytics, relates to “what happened.” It focuses on analyzing historical data and events to identify trends and evaluate what has already occurred. Healthcare administrators use descriptive analytics to determine the current situation, where it used to be and what kind of change caused the difference. Descriptive analytics does not consider the reasons for the change or what comes next.
Possible uses of descriptive analytics in healthcare include:
Diagnostic analytics
Diagnostic analytics seeks to understand “why something happened” or the underlying reasons behind trends, outcomes or patterns in observed events. It uses statistical techniques and models to identify the factors and causes that contributed to the onset of an outcome. Healthcare administrators use diagnostic analytics to uncover the root cause of an event to plan for the future.
Possible uses of diagnostic analytics in healthcare include:
Predictive analytics
Predictive analytics combines the data compiled from identifying the problem and its causes to so decision-makers can plan for what is likely to happen next. Healthcare administrators use predictive analytics to avoid, reduce, or absorb anticipated risks and losses or optimize positive opportunities for growth and improvement.
Possible uses of predictive analytics in healthcare include:
Prescriptive analytics
Prescriptive analytics suggests actions to achieve desired outcomes. Healthcare administrators use prescriptive analytics to determine which actions are necessary to affect or change an expected prediction. Prescriptive analytics can also involve the proposition of data-driven solutions to make improvements in targeted areas.
Possible uses of prescriptive analytics in healthcare include:
How healthcare administrators can apply data analytics
As the volume and complexity of healthcare data increase, future healthcare administrators will have the opportunity to apply data analytics skills to advance meaningful change through precision and personalized medicine. “Healthcare data analytics plays a pivotal role in advancing precision medicine, a paradigm shift in healthcare that aims to tailor medical treatment and interventions to the individual characteristics of each patient,” says the International Organization for Standardization (ISO).
The use of data analytics can help future healthcare administrators make informed decisions that improve patient outcomes while enhancing efficacy and reducing adverse effects in the following ways:
- Improve patient care:
- Future healthcare administrators can use data analytics skills to improve the quality and effectiveness of patient care by identifying risks, anticipating patient needs and supporting programs that promote better outcomes such as disease prevention and reduced readmissions.
- Streamline operational efficiency:
- Applying data analytics skills to healthcare processes and operations can help future healthcare administrators increase institutional efficiency, reduce costs, improve accuracy for billing, minimize waste and prevent costly errors.
- Enhance compliance and risk management:
- Insights gained from data analytics can help future healthcare administrators meet the demands of regulatory compliance and adhere to laws like HIPPA (Health Insurance Portability and Accountability Act) by identifying potential risks and improving institutional compliance checks.
- Optimize resources:
- Data analytics skills can help future healthcare administrators allocate healthcare resources such as staff, equipment and bed space efficiently. This can avoid under- or over-staffing, reduce wait times for evaluations and treatments and ensure patients get the care they need when they need it.
Ways that future healthcare administrators can acquire data analytics skills
As a future healthcare administrator, you can acquire the data analytics skills you will need to apply data insights to the healthcare setting in the following ways:
Earn a bachelor’s degree
You can include courses in healthcare data analytics as electives when you earn a bachelor’s degree in healthcare administration. Due to the increasing relevance of data analytics skills in healthcare, some degree programs include this coursework in their required curriculum. At this level, you can earn core competencies related to healthcare information systems and data and information management in healthcare.
Pursue a postgraduate certificate
Depending on the extent of knowledge and skills you want to acquire, you may be able to obtain the core data analytics skills a future healthcare administrator needs by earning a professional certificate. These programs, which are typically around 10 credits, are often available through the postgraduate or professional skills division of a university.
Enroll in a bootcamp
These intensive educational programs focus on providing the practical skills you need in data analytics. They are typically shorter and more focused than a postgraduate certificate.
Earn a master’s degree
Earning a master’s degree in healthcare administration can help you gain the type of data analytics skills you will need as a decision-maker or leader in advanced roles. Many programs offer online courses that allow working professionals the flexibility they need to pursue a master’s degree while they work.
Pursue continuing education through professional organizations
You may be able to acquire core healthcare data analytics skills by completing continuing education programs offered by a professional healthcare management organization. These organizations include:
Wrapping up
At any level, having data analytics skills can prepare future healthcare administrators to help their organizations respond to the ever-evolving demands and challenges of the healthcare system. While you can’t anticipate the next wave of industry change in healthcare, having data analytics skills can help you respond to new challenges and make informed decisions more efficiently in your role as a future healthcare administrator. Why not begin by researching healthcare administration and information programs that can help you get there?
