Mark Reiboldt's Presentation on Healthcare IT: The Approaching Consulting Profession

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Mark Reiboldt's Presentation on Healthcare IT: The Approaching Consulting Profession

Mark Reiboldt's Presentation on Healthcare IT: The Approaching Consulting Profession

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  • 1. Understanding Healthcare Technology: The Opportunities and Obstacles
    Mark Reiboldt, Vice President
    Coker Capital Advisors LLC
    May 18, 2010
  • 2. Introduction
    The healthcare industry is perhaps the most attractive new frontier for advisors of all kinds, including consulting and technology firms ,throughout the US.  Considered to be the largest single area of investment right now for healthcare industry stakeholders, healthcare IT has opened up a new world of opportunity for all types of service providers, including our consulting community.
    But consultants entering this new frontier need to be more than technology experts to gain opportunity within healthcare IT; the healthcare industry has many unique variables and pitfalls that make it drastically different than other tech sectors.  To find success, consultants must be prepared to address the specific knowledge and expertise that healthcare executives demand.
    This discussion will specifically look to:
    Examine the impact of the recently passed healthcare reform legislation on healthcare IT and what it will mean for the prospects of increased technology adoption by healthcare providers.
    Address some of the key elements making up the healthcare IT market and how the market’s demand is expected to evolve over the next decade. 
    Identify where the opportunities lie in this space for outside advisors and other service providers.
    Identify obstacles service providers will face in the healthcare IT market and ways to overcome them.
    The healthcare industry opportunity …
  • 3. Stats & Metrics
    The US spends four times as much on healthcare as we do on defense spending
    Projected healthcare spending over the next ten years should increase by $1.5 trillion as a result of the recent healthcare reform package signed by President Obama
    The healthcare industry loses over $50 billion a year in value that falls through the cracks as a result of inefficiencies and broken models
    Healthcare providers are struggling on multiple fronts:
    Access to capital
    Reimbursement cuts
    Diminishing margins
    Increased regulatory burden
    Pressure of uncompensated care
    Lack of economies of scale
    Inefficient operations
    What does the current healthcare industry landscape look like?
  • 4. Technology & Healthcare
    While many of the nation’s healthcare provider organizations have invested in technology, these entities continue to lag behind other businesses in terms of overall technology adoption and optimization throughout their operations
    Technology has been promoted for a number of years as a critical factor to transforming the system; however, overall adoption of EHR remains below 25%
    The verdict is still out as to whether or not current technology solutions will actually save healthcare providers money
    The current healthcare reimbursement system does not incentivize technology adoption, making the ROI for providers investing in expensive, cutting edge technology unclear
    Policymakers and government agencies have attempted to change this with recent healthcare reform proposals and the Stimulus Bill (ARRA); however, this has yet to prove of any economic value to medical providers
    Many provider organizations are learning that simply purchasing a piece of technology does not automatically resolve the problems they are intending to address
    It’s not just EHR … providers are beginning to place a premium and focus technology adoption on solutions that will directly enhance operational efficiencies and value opportunities
    Learning experiences over the last five to ten years …
  • 5. Healthcare Reform & Technology
    Impact of healthcare reform will increase access to healthcare services to the 45 million uninsured Americans will dramatically change the financial and operational flow of patients, capital and technology
    Volume of patients to support will dramatically increase, which will decrease the burden of uncompensated care for hospitals; however, this will increase the community need for medical providers
    The payment system has yet to adjust for these changes, so even though more people will be covered, providers are still not being adequately paid for their services
    Technology is already hailed as the cornerstone to making the newly emerging healthcare delivery system work the way it is planned
    The government is instituting programs that focus on incentivizing adoption and optimization; however, policymakers are already talking about penalties for non-compliance
    How will healthcare change and where will more opportunities emerge as a result?
    The versus/then the
  • 6. The Opportunity
    Enhanced revenue cycle management to take advantage of lost revenue
    Cutting costs by replacing expensive infrastructure with technology alternatives
    Expanding services through economies of scale, market growth and non-traditional ventures
    Commercialization opportunities of monetized assets and entrepreneurial initiatives
    Retention of value kept in an organization as a result of enhanced operational efficiencies
    New income opportunities emerging as a result of better quality of care (pay for performance)
    Provider organizations are beginning to pursue previously missed opportunities …
  • 7. Emerging Trends
    Tele-health
    Electronic data management / exchange
    Health information management
    Enhanced communications
    Scaled IT platform solutions
    Advanced provider-patient interaction
    Analytics and research tools
    Revenue management solutions
    Administrative efficiencies and management solutions
    The “Medical Home”
    Scalable, integrated delivery, data and information systems (SIDDIS)
    How technology is saving providers from business declines …
  • 8. Results & Outcomes
    Whatever helps providers institute care more efficiently will also have positive benefits on patients
    Health information management
    Long-term / Chronic illness
    Streamlined coordination of care
    Wellness management
    Less value and (more importantly) less patient needs falling through the cracks
    Overall technology industry has greatly benefitted as a result of more innovation in the healthcare delivery process
    Greater economic efficiency as a result of patients taking on the roll of active consumer
    Healthcare organizations will ultimately have to be accountable to the manner in which their customers (i.e., patients) benefit from their services
    Technology is changing the nature by which the healthcare industry has traditionally measured and approached standards of care
    More importantly, technology will be critical to saving lives …
    “Let's face it, in America today we don't have a health care system, we have a sick care system.”
    – Senator Tom Harkin (D-IA)
  • 9. Gaps & Opportunities
    Technology adoption
    Solution procurement / deployment
    Managed IT / Help Desk services
    Consolidation / Integration
    Clinical Integration
    Revenue cycle and value chain enhancement
    Original R&D (new solutions, start-ups, etc)
    Ongoing Development (applications, modules, etc)
    Business process enhancement
    Program / Project Management
    Lean / Six Sigma
    Strategy (Business, finance, marketing, clinical and technology)
    Who, what, when and where for outside advisors to the healthcare industry?
    The healthcare industry is embracing the concept of the “Universal Advisor”
    (one-stop solution for needs involving corporate finance, management, technology …)
  • 10. Healthcare’s Uniqueness
    Understand the regulatory landscape involving healthcare providers
    Have a clear grasp on the economics of the reimbursement system
    Comprehend healthcare providers’ value chain and how that conflicts with others
    Delineate true value opportunities versus red herrings
    Incorporate clinical, business and technology components into you work/advice
    Work within the confines of healthcare’s uniqueness (i.e., confidentiality, revenue cycle, etc)
    Remain flexible in dealing with the systems inefficiencies and lack of innovation
    Be realistic with expectations, goals and recommendations
    Adjust for various audiences and agendas (all of which have different expectations, even within the same organizations)
    Understand at the end of the day that while these entities are businesses, their single most critical objective is to provide needed care for patients
    Healthcare entities have different needs and requirements than other businesses; in order to work with these organizations, an advisor must be able to …
  • 11. Questions & Contacts
    Questions?
    Mark Reiboldt
    Vice President
    O: 678-832-2004
    M: 678-637-2040
    F: 678-832-2016
    markreiboldt@cokercapital.com
    www.CokerCapital.com