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Digital Business
Value-Based Care and Healthcare
Consumerism: Opportunities for
Health IT and Technologies
Health IT and technology solutions are central in the shift to value-based care
and to meeting the demands of patient consumerism. Hurdles remain, but all
primary players in the healthcare ecosystem, patients, providers and payers,
are seeking more and better data, platform interoperability, real-time and
actionable analytical insights, and more effective engagement.
Executive Summary
The convergence of the U.S. healthcare industry’s shift
to value-based care combined with a technological
revolution that promises increased transparency,
connectivity and real-time information presents unique
opportunities for providers and health systems to
optimize care delivery, improve quality of care and
control costs. As providers become more accountable
for the wellness of their patient populations, tech
companies are aggregating, integrating and
operationalizing data to help providers more accurately
understand their patients’ needs and provide more
strategic care. Likewise, as patients become more
engaged consumers of healthcare, providers are
reevaluating how they interact with patients. These
Cognizant 20-20 Insights
May 2019
industry drivers — value-based care and increased
consumerism — create opportunities for innovative
and potentially disruptive technology solutions that
can enable organizations to sustainably evolve in a
value-based, patient-centered healthcare system.
Furthermore, a now regular cadence of
press release announcements involving new
collaborations, partnerships, joint ventures, and
merger and acquisition (M&A) activity signals a
disruptive confluence among previously disparate
industry stakeholders. These efforts are dedicated
to creating high-performance, connected
healthcare networks focused on customer
engagement, building a critical mass of sustainable
revenue while reducing costs and improving
quality. As payers and providers seek to re-create
and simplify the healthcare value chain, disruptive
technologies will be an enabling cornerstone.
To investigate how the move to value-based
payment models and rising consumerism
are affecting investment in digital health and
technology solutions, Leavitt Partners conducted
a series of interviews with key tech-minded
decision-makers (e.g., chief information officers,
chief medical information officers, chief strategy
officers, chief operating officers, etc.) at health
systems and hospitals across the country. The
interview findings suggest that as the industry
continues to shift from fee-for-service to value-
based care, provider systems are seeking greater
leverage of healthcare data, better tools to predict
risk and the generation of real-time, actionable
insight. Similarly, as healthcare consumerism
surges, hospitals and health systems seek to
provide improved patient engagement tools,
empower patients through data ownership and
serve healthcare consumers with greater price
transparency.
Cognizant 20-20 Insights
2  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies
Emerging opportunities for health IT in value-based care
A main tenet of value-based care is that providers
are paid based on patient health outcomes.1
In these arrangements, health systems are
increasingly responsible for the health of a
population. As providers take on risk for a patient
population, better tools to stratify and predict
impactable risk, greater access and ability to
leverage data, and improved solutions to generate
real-time actionable insight are not only urgent
priorities but are imperative to long-term financial
viability.2
Often, addressing these priorities has
involved significant investment both internally and
through technology vendor relationships. While
significant progress has been made in fulfilling
these needs, three main obstacles remain that can
be addressed through structural and technology
improvements.
Liberate and leverage data
As providers take on more risk for patients’ health
outcomes, they are increasingly incentivized to
know more about patients and to expand their
ability to influence patients’ health outcomes.
As such, value-based care drives demand for
patient data, including clinical, claims and social
determinants of health (SDH) data. However,
longstanding structural and technological barriers —
some of which are rooted in the traditional
fee-for-service system — impede providers’ ability
to fully leverage data as the industry shifts to
value-based care.
Interoperability, data aggregation
and orchestration
As technology companies rose to meet market
demands, many of their solutions inadvertently
created a fragmented system that limited data’s
potential to create a robust portrait of health.
Electronic medical records (EMRs), as one
interviewee stated, are “legacy siloed system”
databases that struggle to integrate among varying
data platforms and other EMR platforms. Imagine
a multiple lane highway interchange devoid of
signs and without clear indications of which lanes
connect to which. The lack of interoperability
among varying EMRs and between clinical data and
payer data platforms presents significant hurdles as
providers seek to develop a more complete picture
of and coordinate care for the patient populations
that they serve. A well-designed data orchestration
platform — a technology solution that enables data
integration and movement among platforms — can
allow for a true exchange of complex data points
across these various siloed systems.
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Cognizant 20-20 Insights
We need more data
with less friction.
>> Health Information Technology Expert
“
As far as technology
to move us to better value-
based contracting and
bundled contracting, we are
just not there yet.
>> Health System Executive
“
Instead of merely providing an electronic version of
an analog health record, EMRs offer the potential
to connect data, track performance, measure
against quality metrics and help create a frictionless
pathway for patients to receive high-quality care.
In order to capitalize on bundled payments, for
example, EMRs need to more accurately document
and coordinate health services and tie these
services to a continuum of care based on an initial
diagnosis or problem. As providers increasingly
take on risk, they must be able to centralize and
access data from disparate sources and make that
data interoperable across platforms.
Regulatory changes related to HIPAA
In additional to data interoperability, there remain
significant regulatory barriers to fully sharing and
leveraging healthcare data. When asked about
the biggest barriers to the various healthcare
stakeholders getting the information they need
to coordinate care, one interviewee responded,
“Consent! Consent! Consent!” This sentiment was
reflected across multiple interviews.
Structural and regulatory barriers to the transfer
of healthcare data are a source of friction that the
current administration seeks to address. Recently,
the U.S. Department of Health and Human
Services’ Office for Civil Rights (OCR) published
a request for information soliciting feedback on
whether and how HIPAA rules should be amended
to promote coordinated care.3
Given the current
administration’s prioritization of enhancing
consumer access to data and increasing payer and
provider transparency, the healthcare industry may
be the beneficiary of future structural changes
to HIPAA that could further enable data-sharing
between healthcare stakeholders and employer
providers to more fully leverage data in the near
term.
Ultimately, these regulatory changes may eliminate
some structural barriers that prevent provider
organizations from fully leveraging healthcare data.
However, as the need to improve care coordination
via the seamless transfer of data under value-
based models of care becomes more widespread,
addressing this regulatory friction with technology
resources represents an opportunity for technology
companies to address a significant pain point
experienced by hospitals and health systems.
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Develop better technology resources
to stratify and predict impactable risk
The industry leaders whom Leavitt Partners
interviewed emphasized the need to better stratify
risk in the patient population. Accurately predicting
and aligning patient risk levels with the appropriate
treatment plan, they noted, enables providers to
deliver the right care while avoiding unnecessary
high-cost utilization such as inappropriate
emergency department (ED) visits and hospital
readmissions. However, stratifying risk is not
enough; rather, the next generation of data tools
needs to help predict and drive impact as well.
Significant investment has been made to aggregate
and analyze patient data to identify and categorize
patient risk levels via analytics tools that leverage
available sources, such as claims and EMRs, which
can contain clinical, social, family and demographic
data. However, current and future technological
developments need to help provider systems
understand patients more holistically. Providers
need to know where targeted interventions will
impact outcomes and reduce costs.
Today, available data and analytics resources
provide an incomplete assessment of patient risk
that can lead to inappropriate care interventions
and resource waste. Risk assessment and care
intervention technologies that leverage artificial
intelligence and machine learning coupled with a
robust patient-physician communication interface,
for example, could enable health systems to
better understand patient behavior, hone their risk
profiles, and more accurately predict and carry out
timely, high-impact interventions.
Generate real-time, actionable insight
Corresponding with the cross-industry interest in
real-time, big-data analytics solutions, healthcare
providers with risk-based contracts expressed a
need for real-time actionable insights to optimize
care coordination and care delivery decisions, from
both clinical and administrative standpoints. As
providers are held accountable for patient health
outcomes through reimbursement adjustments
and contracting arrangements that penalize
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There is a need for more ‘real-time’ data to react to during
the episode of care instead of ‘ex post facto’ data to react to after
care.
>> Health System Executive
“
We waste a lot of
resources on people that
we can’t really impact … we
need to understand which
patients are amenable to
change and which patients
may not be impactable for a
number of reasons.
>> Health System COO
“
inefficiencies, retrospective insight from claims and
clinical data is not actionable. Therefore, it does not
help at-risk providers make cost-effective decisions
to optimize care.
To a certain extent, the need for actionable, real-
time insight to enhance care coordination and
control costs has incented payers and providers
to collaborate and communicate more closely
under risk-based contracts and partnerships.4
For example, a number of provider systems have
partnered with Oscar Health, a technology-
focused health plan that facilitates patient-
provider communication and a more transparent
claims pricing system. This is one example where
technology-enabled payer-provider collaboration
has the potential to enhance the efficiency and
quality of care.
While the need for real-time insight is not new,
as the healthcare industry continues to shift to
value, real-time, actionable insight is becoming
a more pressing priority.5
Hospitals and health
systems involved in risk-based contracts, EMR
vendors and other health IT companies have
invested in technologies to improve their analytical
capabilities, which will provide physicians and
patients with better access to real-time, actionable
data. However, significant room for improvement
remains.
For example, a growing digital therapeutics
industry, funded by a variety of healthcare industry
stakeholders — and which has yet to be integrated
into mainstream healthcare — shows promise by
empowering patients to leverage their healthcare
data and augment traditional clinical therapies
with actionable intelligence provided to patients
and physicians in real time. Illustrative of this point,
the Food and Drug Administration (FDA) recently
approved a mobile medical app to help treat people
with substance use disorders (SUDs) based on
clinical trials. Early results show that 40% of patients
who used the app abstained for three months,
compared with 17.6% who used standard therapy
alone.6
This ability to leverage data to change
patient behavior, especially for patient populations
with high-cost, chronic conditions, directly impacts
financial profitability, particularly for provider
systems that are involved in value-based contracts.
In addition to high-risk patients, exemplified in
the SUD example, digital therapeutics also shows
promise to benefit mid- and low-risk patients
through preventive care and improved patient
engagement.
As the need to provide cost-effective care
becomes increasingly urgent in a value-oriented
healthcare system, providing physicians with timely
and actionable intelligence is paramount. Executive
decision-makers will continue to seek technology
solutions that are effective to that end.7
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Digital therapeutics
(DTx) deliver evidence-based
therapeutic interventions
to patients that are driven
by high quality software
programs to prevent,
manage, or treat a medical
disorder or disease.
>> Digital Therapeutics Alliance
“
Emerging opportunities for health IT in healthcare
“consumerism”
Another important area of opportunity for
technology solutions that industry experts
identified are the growing demands of
consumerism. As patients increasingly access
the healthcare system as consumers, they are
expecting more convenience, more transparency
and greater access to their health information.
Increasingly, patients, payers and providers are
looking to technology solutions to meet growing
demands for improving patient engagement tools,
increasing price transparency and empowering
patients to own their data.
Improve patient engagement tools
One key opportunity for health IT is to redesign
engagement tools in ways that empower patients.
Many healthcare organizations and technology
vendors are already aggregating and transmitting
data; however, patients need access to the right
data in a format designed for their user experience.
The goal is not just to dump data, but to engage
patients to “own” their health. However, the industry
needs to innovate in significant ways to overcome
two immediate challenges:
❙❙ Patient portals are slow to gain traction among
patients.
❙❙ Reimbursement for patient engagement tools
(e.g., telemedicine, remote patient monitoring,
etc.) is still in a nascent stage.
Utilization of engagement tools
With the ubiquity of smartphones and internet
access, provider systems are harnessing mobile
apps and online portals to engage with patients.
These online portals include scheduling, live
messaging, medication reminders, prescription
fill requests, lab-result updates, billing and other
services.
Additional patient engagement technologies
include wearables, telemedicine and remote
patient monitoring. Illustrative of the high
prevalence of digital health technologies, a recent
survey published by the American Hospital
Association indicated that 78% of U.S. hospitals
currently or soon plan to connect with patients and
consulting practitioners remotely using video and
other technology.8
While these technologies can
reduce readmission rates, improve management
of chronic conditions and increase access to care,
many of these solutions lack interconnectivity. In
contrast to ubiquitous but disparate digital health
solutions, an integrated, central platform-based
approach, interoperable with EMRs, could allow
providers to curate and configure digital therapies
to engage patients across all risk thresholds.
While these engagement resources exhibit
substantial benefits, providers are finding that their
portals and digital health tools are significantly
underutilized, largely due to the fact that many
patients are not aware of the technology resources
that their providers offer, or in many cases patients
have multiple patient portals which results in
technology avoidance (e.g., too many usernames
and passwords to remember, etc.). Resistance to
patient portals is also a reaction to the impersonality
of the communication and the impression that
the clinicians are not reaching out in real time to
their patients. The Medicare population especially
experiences low engagement with these tools
because they are not familiar with the functionality
such tools provide. The generational technology
gap also hinders older patients’ use of smartphones
to become more engaged in their healthcare.
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To address low engagement issues, many provider
organizations are implementing education and
registration initiatives to introduce patients to
engagement tools at the moment they enter
the facility. Pamphlets and demonstrations are
provided at initial registration to ensure that the
patient is aware of and understands the benefits
available via the patient portal and telemedicine
resources. One chief medical information officer
cited that these efforts led to a 30% increase in
patient engagement.
Patient engagement resources enable providers to
interact with patients beyond the traditional care
setting, which can ensure that effective follow-
up measures are taking place outside of an office
visit. With more frequent contact through these
nontraditional care modalities and interfaces,
providers hope to improve patients’ overall
health and satisfaction. Significant opportunity
lies in providing patients with technologies that
offer actionable health information, so they can
proactively avoid exposure to high-risk situations
and effectively manage their acute and chronic
conditions.
Respondents from provider systems want the
ability to deploy targeted care plans and campaigns
to keep users engaged and informed. Dynamic
content and real-time notifications provide real
value and help users feel more connected to
care. For example, providers want the ability to
remind patients of their colonoscopy appointment
and send text messages with pre-procedure
instructions to enable a successful visit to the
provider office, and post procedure to see how the
patient is doing (e.g., digital therapeutics). Enabling
and empowering patients allows for a better digital
experience by creating a sense of personalized
care as well as better outcomes and success of the
care management plan. While nothing replaces
a physician calling a patient for follow up, which
is rare, we must remember healthcare comprises
highly people-oriented interactions. A digital
experience that advances a patient through steps
in a visit, process or follow up presents to patients
a personalized experience that’s tailored to their
specific needs, thereby imparting to the patient
that their provider really understands and cares
about their health outcome.
In addition to care providers, insurance payers seek
technology that enables them to communicate
with members around their health plans and
encourage members to fulfill their responsibility to
achieve care plan goals. The various constituents
in the healthcare ecosystem find value in operating
on a single framework or platform to ensure that
information is available, reliable and actionable.
Through this platform-centric approach, the goal
is for payers, providers and patients to get timely
access to information to generate operational
efficiencies and drive more engagement. Real-time
information will increase self-service engagement,
thus decreasing the overall cost to serve the patient
base and operate profitably.
These engagement tools exhibit significant
potential, but while usage is increasing, it still is not
at an optimal rate. One chief medical information
officer stated that patients who are “worried well”
and “aspiring well” are and will continue to pave the
way in terms of engagement tool use. As the more
complex case patients observe the benefits of
these tools, their adoption will subsequently follow.
8  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies
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Actionable data is true
patient engagement.
>> Health Information Technology Expert
“
Reimbursement for patient engagement tools
Another barrier that the healthcare industry
faces regarding the widespread use of patient
engagement tools and technologies is that
reimbursement for these services has not
fully matured. There is growing interest in
reimbursement for telemedicine services, remote
patient monitoring, care coordination technologies
and other nontraditional forms of patient
interaction, but the journey to full and equal parity
of reimbursement for these services is not yet
complete.
While there is progress yet to be made, the Centers
for Medicare and Medicaid Services (CMS) has
shown significant interest in reimbursing for many
of these nontraditional care delivery services. The
2019 physician fee schedule released by CMS takes
significant strides toward modernizing medicine
and paying for patient engagement services.9
Changes to the fee schedule include provisions for
Medicare to reimburse for “brief communication
technology-based service and remote evaluation
of recorded video and/or images submitted by
an established patient.” Similar to other CMS
innovations, once Medicare adopts a provision,
commercial health plans tend to follow suit. This
could likely happen for patient engagement
services.
Empower patients through
data ownership
A key element to addressing consumerism
in healthcare is empowering patients to take
ownership of their health data, which will contribute
to significantly improved and informed healthcare
decision-making for both patients and providers.
Patients are then capable of sharing their data with
whichever healthcare stakeholders or providers
they choose. However, current regulation and the
atmosphere around data privacy in society today
make this form of data sharing difficult. Significant
challenges regarding empowering patients through
data ownership include:
❙❙ Controversy over who has the right to access
and transmit data.
❙❙ Asymmetry of power that exists among patients
and providers.
Data access
It is widely acknowledged that leveraging data to
support healthcare decisions provides significant
value. Challenges, however, stem from the fact
that both patients and providers often do not have
this data to inform the provision of healthcare.
Regulations like HIPAA often create barriers to
seamless transmission of relevant information
between disparate entities. If separate providers
use different EMRs, then little to no transmission
of medical information occurs because of a lack
of interoperability. For example, when a patient
receives care at one hospital or health system and
later receives care at another hospital or health
system, the data gathered on the patient at the
former location frequently is not transferable to
the latter. This lapse in data-sharing institutes a
gap in care coordination because the “wheel is
reinvented” at the new care delivery site, often
resulting in higher healthcare costs through
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What providers do and
what they are paid to do are
at odds.
>> Health System Executive
“
You want an informed, educated, empowered patient who is
given the technological tools to shape their own health course.
>> Health System Executive
“
repeated medical tests or more intensive patient
evaluation due to lack of current medical record
information.
Opportunity lies in empowering patients to take
ownership of their data by offering technology
solutions such as apps, web portals and other
interfaces that allow data to be stored in a personal
repository and transferred to each healthcare
provider the patient desires. This data aggregation
would help paint a complete patient profile that
could shape and inform the care received, thus
creating a patient-centric approach to care delivery.
Power asymmetry
High-quality care requires that all parties actively
engage in creating positive and lasting health
outcomes. Healthcare today is often driven
by providers; patients become injured, ill or
mismanage their chronic condition and expect
providers to “fix” them, thereby relinquishing
their “power.” This power asymmetry often leads
to inefficient and uninformed care. Technology
and digital health solutions address this issue by
allowing patients to own their health, own their
data, become more engaged and interact with the
provider in unique ways.
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Cognizant 20-20 Insights
Provide greater price transparency
One issue that riddles the healthcare industry is the
lack of price transparency. This creates immense
barriers to promoting an informed, engaged and
aware patient population. Patients’ desire to gather
intel and make informed, cost-effective healthcare
decisions is growing, but the resources to enable
them to access this relevant information are lacking.
Significant challenges regarding price transparency
include:
❙❙ An increase in high-deductible health plan
(HDHP) prevalence causes patients to become
more sensitive to healthcare costs and often to
delay care.
❙❙ Convergence between payers and providers is
still in the beginning stages.
Increase in HDHPs
The increased prevalence of HDHPs subsequently
increases the patient-pay portion of medical bills.
As a result, patients have become increasingly
sensitive to the cost of care. According to a
2018 consumer survey conducted by Leavitt
Partners, 32% of respondents stated they are very
concerned about their ability to pay medical bills
not covered by insurance, and 23% conveyed they
are somewhat concerned. These numbers have
increased by 7% percent and 4%, respectively,
since 2017.
Several healthcare “shopping tools” are available,
but the industry faces two issues that have
hindered the usage of these resources: (1) providing
patients with accurate prices for medical services
in the current regulatory environment is extremely
difficult,10
and (2) patients are significantly
underutilizing the solutions that are available.11
As the adoption of value-based care continues
to increase, price transparency will likely become
more of a reality. This will enable provider
organizations to market more accurate prices
and quality metrics to patients.12
However, this
marketing of prices and outcomes will not
significantly impact the healthcare industry unless
patients utilize the information made available
to them to make informed decisions about their
health. Patients are simply underutilizing these
services, again, largely due to a lack of awareness
and understanding. There is a substantial need to
educate patients about these price-comparison
tools — how to use them, how to interpret them, etc.
Doing so could contribute to improved quality and
lower healthcare costs. As patients use these tools
more frequently as consumers of healthcare, they
will be able to “shop around” and price-compare
various procedures, therapies, treatments and
pharmaceuticals as well as price variances in sites
of care.
Convergence between payer and provider
Consumerism calls for convenient, functional high-
quality services. A payer-provider convergence
is required to deliver on these expectations. An
empowered patient-consumer market demands
effective personalized care that is corroborated
holistically among industry operators. This
“ecosystem approach” requires that organizations
bring together disparate sources of information to
create an integrated view across payers, providers
and consumers by orchestrating engagement,
insights and services.
Payers and providers often have aligned incentives,
which would ideally increase price transparency;
but that is often not the case. Providers benefit
from concealing their prices when contracting with
payers, which contributes to patients’ inability to
receive prices for various procedures or sites of
service. Finding a win-win contractual relationship
between payer and provider in the quality-based
contracting environment has proved to be
challenging.13
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Technology solutions, such as improved patient
engagement tools and efficient data exchange
platforms, can play a significant role to facilitate this
convergence, enabling it to occur effectively, with
added focus on a patient-centered model of care.
These digital health technologies can help solidify
and deepen the patient relationship with both
providers and payers and align incentives across
stakeholders to promote improved transparency.
Bringing all disparate parties together to interact
on a consolidated, integrated platform with the
consumer at the center presents a substantial
opportunity for the industry, which can contribute
to higher-quality, lower-cost care.
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Looking ahead
The U.S. healthcare system is undergoing a
transformation similar to the ongoing digital
revolution that has changed traditional business
models and empowered consumer engagement
in multiple industries. As the healthcare industry
continues to shift to value-based care and as
consumerism surges, investments in digital health
and technology solutions will become increasingly
important and prolific.
More specifically, as more hospitals and health
systems shift to risk-based payment models,
liberate and leverage healthcare data, develop
better tools to stratify and predict impactable risk,
and generate real-time actionable insight, these
priorities become essential for future financial
viability and success. Similarly, as patients become
more engaged consumers of healthcare, providers
will continue to reevaluate how they interact with
patients by improving patient engagement tools,
empowering patients through data ownership and
providing greater price transparency.
Ultimately, as organizations across the healthcare
ecosystem adapt and, in many instances, converge
to thrive in the emerging patient-centric, value-
based healthcare system, technology that facilitates
connectivity between disparate stakeholders,
including patients, payers and providers, will be a
foundational cornerstone that enables high-quality,
cost-effective care.
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Endnotes
1	 “What is Value-Based Healthcare?” New England Journal of Medicine (NEJM) Catalyst, Jan. 1, 2017, https://catalyst.nejm.
org/what-is-value-based-healthcare/.
2	 Leavitt Partners Intelligence Interviews, December 2018.
3	 “OCR Requests Information from Stakeholders on Significant Changes to HIPAA Rules” The National Law Review,
December 20, 2018, www.natlawreview.com/article/ocr-requests-information-stakeholders-significant-changes-to-
hipaa-rules.
4	 Leavitt Partners Intelligence Interviews, November 2018.
5	 Leavitt Partners Intelligence Interviews, December 2018.
6	 Sy Mukherjee, “FDA clears the first-ever mobile app to treat alcohol, marijuana, cocaine addiction,” Fortune,
September 14, 2017, http://fortune.com/2017/09/14/fda-alcohol-marijuana-cocaine-mobile-app/.
7	 Leavitt Partners Intelligence Interviews, December 2018.
8	 “Factsheet Telehealth” American Hospital Association, 2018, www.aha.org/system/files/2018-04/fact-sheet-
telehealth-2018.pdf.
9	 “Final Policy, Payment, and Quality Provisions Changes to the Medicare Physician Fee Schedule for Calendar Year 2019.”
Centers for Medicare and Medicaid Services (CMS), November 2018, www.cms.gov/newsroom/fact-sheets/final-policy-
payment-and-quality-provisions-changes-medicare-physician-fee-schedule-calendar-year.
10	 “Health Care Price Transparency: Can It Promote High-Value Care?” The Common Wealth Fund, 2019,
www.commonwealthfund.org/publications/newsletter-article/health-care-price-transparency-can-it-promote-high-
value-care.
11	 Austin Frakt, “Price Transparency Is Nice. Just Don’t Expect It to Cut Health Costs.” New York Times, December
2016, www.nytimes.com/2016/12/19/upshot/price-transparency-is-nice-just-dont-expect-it-to-cut-health-costs.
html?module=inline.
12	 “CMS Finalizes Changes to Empower Patients and Reduce Administrative Burden.” Centers for Medicare & Medicaid
Services (CMS), August 2018, www.cms.gov/newsroom/press-releases/cms-finalizes-changes-empower-patients-and-
reduce-administrative-burden.
13	 Christopher J. Donavan. “Six Key Investment and Strategic Themes from Payer-Provider Convergence Deals.” The National
Law Review, June 2018, www.natlawreview.com/article/six-key-investment-and-strategic-themes-payer-provider-
convergence-deals.
Methodology
Findings in this issue brief are the culmination of both primary and secondary research conducted by
Leavitt Partners, a health intelligence consulting firm founded by former Secretary of Health, Gov. Mike
Leavitt. Primary research featured a series of 12, 60-minute interviews with key executive decision-
makers at influential hospitals and health systems throughout the U.S. in November and December 2018.
Interviewees included chief information officers, chief medical information officers, chief strategy officers,
chief operating officers, etc. Secondary sources that informed the issue brief findings have been cited
throughout the document.
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Cognizant 20-20 Insights
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World Headquarters
500 Frank W. Burr Blvd.
Teaneck, NJ 07666 USA
Phone: +1 201 801 0233
Fax: +1 201 801 0243
Toll Free: +1 888 937 3277
European Headquarters
1 Kingdom Street
Paddington Central
London W2 6BD England
Phone: +44 (0) 20 7297 7600
Fax: +44 (0) 20 7121 0102
India Operations Headquarters
#5/535 Old Mahabalipuram Road
Okkiyam Pettai, Thoraipakkam
Chennai, 600 096 India
Phone: +91 (0) 44 4209 6000
Fax: +91 (0) 44 4209 6060
About Leavitt Partners
Leavitt Partners is a healthcare intelligence business. The firm helps clients navigate the evolving role of value in
healthcare by informing, advising and convening industry leaders on value market analytics, alternative payment
models, federal strategies, insurance market insights and alliances. Through its family of businesses, the firm
provides investment support, data and analytics, member-based alliances and direct services to clients to support
decision-making strategies in the value economy. For more information, visit leavittpartners.com.
About Cognizant Healthcare
Cognizant’s Healthcare Business Unit works with healthcare organizations to provide collaborative, innovative solutions that address the industry’s most
pressing IT and business challenges — from rethinking new business models to optimizing operations and enabling technology innovation. A global
leader in healthcare, our industry-specific services and solutions support leading payers, providers and pharmacy benefit managers worldwide. For more
information, visit www.cognizant.com/healthcare.
About Cognizant
Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating and technology
models for the digital era. Our unique industry-based, consultative approach helps clients envision, build and run more innovative and efficient business-
es. Headquartered in the U.S., Cognizant is ranked 195 on the Fortune 500 and is consistently listed among the most admired companies in the world.
Learn how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant.

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Digital Business Value-Based Care and Consumerism Health IT Opportunities

  • 1. Digital Business Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies Health IT and technology solutions are central in the shift to value-based care and to meeting the demands of patient consumerism. Hurdles remain, but all primary players in the healthcare ecosystem, patients, providers and payers, are seeking more and better data, platform interoperability, real-time and actionable analytical insights, and more effective engagement. Executive Summary The convergence of the U.S. healthcare industry’s shift to value-based care combined with a technological revolution that promises increased transparency, connectivity and real-time information presents unique opportunities for providers and health systems to optimize care delivery, improve quality of care and control costs. As providers become more accountable for the wellness of their patient populations, tech companies are aggregating, integrating and operationalizing data to help providers more accurately understand their patients’ needs and provide more strategic care. Likewise, as patients become more engaged consumers of healthcare, providers are reevaluating how they interact with patients. These Cognizant 20-20 Insights May 2019
  • 2. industry drivers — value-based care and increased consumerism — create opportunities for innovative and potentially disruptive technology solutions that can enable organizations to sustainably evolve in a value-based, patient-centered healthcare system. Furthermore, a now regular cadence of press release announcements involving new collaborations, partnerships, joint ventures, and merger and acquisition (M&A) activity signals a disruptive confluence among previously disparate industry stakeholders. These efforts are dedicated to creating high-performance, connected healthcare networks focused on customer engagement, building a critical mass of sustainable revenue while reducing costs and improving quality. As payers and providers seek to re-create and simplify the healthcare value chain, disruptive technologies will be an enabling cornerstone. To investigate how the move to value-based payment models and rising consumerism are affecting investment in digital health and technology solutions, Leavitt Partners conducted a series of interviews with key tech-minded decision-makers (e.g., chief information officers, chief medical information officers, chief strategy officers, chief operating officers, etc.) at health systems and hospitals across the country. The interview findings suggest that as the industry continues to shift from fee-for-service to value- based care, provider systems are seeking greater leverage of healthcare data, better tools to predict risk and the generation of real-time, actionable insight. Similarly, as healthcare consumerism surges, hospitals and health systems seek to provide improved patient engagement tools, empower patients through data ownership and serve healthcare consumers with greater price transparency. Cognizant 20-20 Insights 2  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies
  • 3. Emerging opportunities for health IT in value-based care A main tenet of value-based care is that providers are paid based on patient health outcomes.1 In these arrangements, health systems are increasingly responsible for the health of a population. As providers take on risk for a patient population, better tools to stratify and predict impactable risk, greater access and ability to leverage data, and improved solutions to generate real-time actionable insight are not only urgent priorities but are imperative to long-term financial viability.2 Often, addressing these priorities has involved significant investment both internally and through technology vendor relationships. While significant progress has been made in fulfilling these needs, three main obstacles remain that can be addressed through structural and technology improvements. Liberate and leverage data As providers take on more risk for patients’ health outcomes, they are increasingly incentivized to know more about patients and to expand their ability to influence patients’ health outcomes. As such, value-based care drives demand for patient data, including clinical, claims and social determinants of health (SDH) data. However, longstanding structural and technological barriers — some of which are rooted in the traditional fee-for-service system — impede providers’ ability to fully leverage data as the industry shifts to value-based care. Interoperability, data aggregation and orchestration As technology companies rose to meet market demands, many of their solutions inadvertently created a fragmented system that limited data’s potential to create a robust portrait of health. Electronic medical records (EMRs), as one interviewee stated, are “legacy siloed system” databases that struggle to integrate among varying data platforms and other EMR platforms. Imagine a multiple lane highway interchange devoid of signs and without clear indications of which lanes connect to which. The lack of interoperability among varying EMRs and between clinical data and payer data platforms presents significant hurdles as providers seek to develop a more complete picture of and coordinate care for the patient populations that they serve. A well-designed data orchestration platform — a technology solution that enables data integration and movement among platforms — can allow for a true exchange of complex data points across these various siloed systems. 3  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies Cognizant 20-20 Insights We need more data with less friction. >> Health Information Technology Expert “ As far as technology to move us to better value- based contracting and bundled contracting, we are just not there yet. >> Health System Executive “
  • 4. Instead of merely providing an electronic version of an analog health record, EMRs offer the potential to connect data, track performance, measure against quality metrics and help create a frictionless pathway for patients to receive high-quality care. In order to capitalize on bundled payments, for example, EMRs need to more accurately document and coordinate health services and tie these services to a continuum of care based on an initial diagnosis or problem. As providers increasingly take on risk, they must be able to centralize and access data from disparate sources and make that data interoperable across platforms. Regulatory changes related to HIPAA In additional to data interoperability, there remain significant regulatory barriers to fully sharing and leveraging healthcare data. When asked about the biggest barriers to the various healthcare stakeholders getting the information they need to coordinate care, one interviewee responded, “Consent! Consent! Consent!” This sentiment was reflected across multiple interviews. Structural and regulatory barriers to the transfer of healthcare data are a source of friction that the current administration seeks to address. Recently, the U.S. Department of Health and Human Services’ Office for Civil Rights (OCR) published a request for information soliciting feedback on whether and how HIPAA rules should be amended to promote coordinated care.3 Given the current administration’s prioritization of enhancing consumer access to data and increasing payer and provider transparency, the healthcare industry may be the beneficiary of future structural changes to HIPAA that could further enable data-sharing between healthcare stakeholders and employer providers to more fully leverage data in the near term. Ultimately, these regulatory changes may eliminate some structural barriers that prevent provider organizations from fully leveraging healthcare data. However, as the need to improve care coordination via the seamless transfer of data under value- based models of care becomes more widespread, addressing this regulatory friction with technology resources represents an opportunity for technology companies to address a significant pain point experienced by hospitals and health systems. 4  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies Cognizant 20-20 Insights
  • 5. Develop better technology resources to stratify and predict impactable risk The industry leaders whom Leavitt Partners interviewed emphasized the need to better stratify risk in the patient population. Accurately predicting and aligning patient risk levels with the appropriate treatment plan, they noted, enables providers to deliver the right care while avoiding unnecessary high-cost utilization such as inappropriate emergency department (ED) visits and hospital readmissions. However, stratifying risk is not enough; rather, the next generation of data tools needs to help predict and drive impact as well. Significant investment has been made to aggregate and analyze patient data to identify and categorize patient risk levels via analytics tools that leverage available sources, such as claims and EMRs, which can contain clinical, social, family and demographic data. However, current and future technological developments need to help provider systems understand patients more holistically. Providers need to know where targeted interventions will impact outcomes and reduce costs. Today, available data and analytics resources provide an incomplete assessment of patient risk that can lead to inappropriate care interventions and resource waste. Risk assessment and care intervention technologies that leverage artificial intelligence and machine learning coupled with a robust patient-physician communication interface, for example, could enable health systems to better understand patient behavior, hone their risk profiles, and more accurately predict and carry out timely, high-impact interventions. Generate real-time, actionable insight Corresponding with the cross-industry interest in real-time, big-data analytics solutions, healthcare providers with risk-based contracts expressed a need for real-time actionable insights to optimize care coordination and care delivery decisions, from both clinical and administrative standpoints. As providers are held accountable for patient health outcomes through reimbursement adjustments and contracting arrangements that penalize 5  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies Cognizant 20-20 Insights There is a need for more ‘real-time’ data to react to during the episode of care instead of ‘ex post facto’ data to react to after care. >> Health System Executive “ We waste a lot of resources on people that we can’t really impact … we need to understand which patients are amenable to change and which patients may not be impactable for a number of reasons. >> Health System COO “
  • 6. inefficiencies, retrospective insight from claims and clinical data is not actionable. Therefore, it does not help at-risk providers make cost-effective decisions to optimize care. To a certain extent, the need for actionable, real- time insight to enhance care coordination and control costs has incented payers and providers to collaborate and communicate more closely under risk-based contracts and partnerships.4 For example, a number of provider systems have partnered with Oscar Health, a technology- focused health plan that facilitates patient- provider communication and a more transparent claims pricing system. This is one example where technology-enabled payer-provider collaboration has the potential to enhance the efficiency and quality of care. While the need for real-time insight is not new, as the healthcare industry continues to shift to value, real-time, actionable insight is becoming a more pressing priority.5 Hospitals and health systems involved in risk-based contracts, EMR vendors and other health IT companies have invested in technologies to improve their analytical capabilities, which will provide physicians and patients with better access to real-time, actionable data. However, significant room for improvement remains. For example, a growing digital therapeutics industry, funded by a variety of healthcare industry stakeholders — and which has yet to be integrated into mainstream healthcare — shows promise by empowering patients to leverage their healthcare data and augment traditional clinical therapies with actionable intelligence provided to patients and physicians in real time. Illustrative of this point, the Food and Drug Administration (FDA) recently approved a mobile medical app to help treat people with substance use disorders (SUDs) based on clinical trials. Early results show that 40% of patients who used the app abstained for three months, compared with 17.6% who used standard therapy alone.6 This ability to leverage data to change patient behavior, especially for patient populations with high-cost, chronic conditions, directly impacts financial profitability, particularly for provider systems that are involved in value-based contracts. In addition to high-risk patients, exemplified in the SUD example, digital therapeutics also shows promise to benefit mid- and low-risk patients through preventive care and improved patient engagement. As the need to provide cost-effective care becomes increasingly urgent in a value-oriented healthcare system, providing physicians with timely and actionable intelligence is paramount. Executive decision-makers will continue to seek technology solutions that are effective to that end.7 6  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies Cognizant 20-20 Insights Digital therapeutics (DTx) deliver evidence-based therapeutic interventions to patients that are driven by high quality software programs to prevent, manage, or treat a medical disorder or disease. >> Digital Therapeutics Alliance “
  • 7. Emerging opportunities for health IT in healthcare “consumerism” Another important area of opportunity for technology solutions that industry experts identified are the growing demands of consumerism. As patients increasingly access the healthcare system as consumers, they are expecting more convenience, more transparency and greater access to their health information. Increasingly, patients, payers and providers are looking to technology solutions to meet growing demands for improving patient engagement tools, increasing price transparency and empowering patients to own their data. Improve patient engagement tools One key opportunity for health IT is to redesign engagement tools in ways that empower patients. Many healthcare organizations and technology vendors are already aggregating and transmitting data; however, patients need access to the right data in a format designed for their user experience. The goal is not just to dump data, but to engage patients to “own” their health. However, the industry needs to innovate in significant ways to overcome two immediate challenges: ❙❙ Patient portals are slow to gain traction among patients. ❙❙ Reimbursement for patient engagement tools (e.g., telemedicine, remote patient monitoring, etc.) is still in a nascent stage. Utilization of engagement tools With the ubiquity of smartphones and internet access, provider systems are harnessing mobile apps and online portals to engage with patients. These online portals include scheduling, live messaging, medication reminders, prescription fill requests, lab-result updates, billing and other services. Additional patient engagement technologies include wearables, telemedicine and remote patient monitoring. Illustrative of the high prevalence of digital health technologies, a recent survey published by the American Hospital Association indicated that 78% of U.S. hospitals currently or soon plan to connect with patients and consulting practitioners remotely using video and other technology.8 While these technologies can reduce readmission rates, improve management of chronic conditions and increase access to care, many of these solutions lack interconnectivity. In contrast to ubiquitous but disparate digital health solutions, an integrated, central platform-based approach, interoperable with EMRs, could allow providers to curate and configure digital therapies to engage patients across all risk thresholds. While these engagement resources exhibit substantial benefits, providers are finding that their portals and digital health tools are significantly underutilized, largely due to the fact that many patients are not aware of the technology resources that their providers offer, or in many cases patients have multiple patient portals which results in technology avoidance (e.g., too many usernames and passwords to remember, etc.). Resistance to patient portals is also a reaction to the impersonality of the communication and the impression that the clinicians are not reaching out in real time to their patients. The Medicare population especially experiences low engagement with these tools because they are not familiar with the functionality such tools provide. The generational technology gap also hinders older patients’ use of smartphones to become more engaged in their healthcare. 7  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies Cognizant 20-20 Insights
  • 8. To address low engagement issues, many provider organizations are implementing education and registration initiatives to introduce patients to engagement tools at the moment they enter the facility. Pamphlets and demonstrations are provided at initial registration to ensure that the patient is aware of and understands the benefits available via the patient portal and telemedicine resources. One chief medical information officer cited that these efforts led to a 30% increase in patient engagement. Patient engagement resources enable providers to interact with patients beyond the traditional care setting, which can ensure that effective follow- up measures are taking place outside of an office visit. With more frequent contact through these nontraditional care modalities and interfaces, providers hope to improve patients’ overall health and satisfaction. Significant opportunity lies in providing patients with technologies that offer actionable health information, so they can proactively avoid exposure to high-risk situations and effectively manage their acute and chronic conditions. Respondents from provider systems want the ability to deploy targeted care plans and campaigns to keep users engaged and informed. Dynamic content and real-time notifications provide real value and help users feel more connected to care. For example, providers want the ability to remind patients of their colonoscopy appointment and send text messages with pre-procedure instructions to enable a successful visit to the provider office, and post procedure to see how the patient is doing (e.g., digital therapeutics). Enabling and empowering patients allows for a better digital experience by creating a sense of personalized care as well as better outcomes and success of the care management plan. While nothing replaces a physician calling a patient for follow up, which is rare, we must remember healthcare comprises highly people-oriented interactions. A digital experience that advances a patient through steps in a visit, process or follow up presents to patients a personalized experience that’s tailored to their specific needs, thereby imparting to the patient that their provider really understands and cares about their health outcome. In addition to care providers, insurance payers seek technology that enables them to communicate with members around their health plans and encourage members to fulfill their responsibility to achieve care plan goals. The various constituents in the healthcare ecosystem find value in operating on a single framework or platform to ensure that information is available, reliable and actionable. Through this platform-centric approach, the goal is for payers, providers and patients to get timely access to information to generate operational efficiencies and drive more engagement. Real-time information will increase self-service engagement, thus decreasing the overall cost to serve the patient base and operate profitably. These engagement tools exhibit significant potential, but while usage is increasing, it still is not at an optimal rate. One chief medical information officer stated that patients who are “worried well” and “aspiring well” are and will continue to pave the way in terms of engagement tool use. As the more complex case patients observe the benefits of these tools, their adoption will subsequently follow. 8  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies Cognizant 20-20 Insights Actionable data is true patient engagement. >> Health Information Technology Expert “
  • 9. Reimbursement for patient engagement tools Another barrier that the healthcare industry faces regarding the widespread use of patient engagement tools and technologies is that reimbursement for these services has not fully matured. There is growing interest in reimbursement for telemedicine services, remote patient monitoring, care coordination technologies and other nontraditional forms of patient interaction, but the journey to full and equal parity of reimbursement for these services is not yet complete. While there is progress yet to be made, the Centers for Medicare and Medicaid Services (CMS) has shown significant interest in reimbursing for many of these nontraditional care delivery services. The 2019 physician fee schedule released by CMS takes significant strides toward modernizing medicine and paying for patient engagement services.9 Changes to the fee schedule include provisions for Medicare to reimburse for “brief communication technology-based service and remote evaluation of recorded video and/or images submitted by an established patient.” Similar to other CMS innovations, once Medicare adopts a provision, commercial health plans tend to follow suit. This could likely happen for patient engagement services. Empower patients through data ownership A key element to addressing consumerism in healthcare is empowering patients to take ownership of their health data, which will contribute to significantly improved and informed healthcare decision-making for both patients and providers. Patients are then capable of sharing their data with whichever healthcare stakeholders or providers they choose. However, current regulation and the atmosphere around data privacy in society today make this form of data sharing difficult. Significant challenges regarding empowering patients through data ownership include: ❙❙ Controversy over who has the right to access and transmit data. ❙❙ Asymmetry of power that exists among patients and providers. Data access It is widely acknowledged that leveraging data to support healthcare decisions provides significant value. Challenges, however, stem from the fact that both patients and providers often do not have this data to inform the provision of healthcare. Regulations like HIPAA often create barriers to seamless transmission of relevant information between disparate entities. If separate providers use different EMRs, then little to no transmission of medical information occurs because of a lack of interoperability. For example, when a patient receives care at one hospital or health system and later receives care at another hospital or health system, the data gathered on the patient at the former location frequently is not transferable to the latter. This lapse in data-sharing institutes a gap in care coordination because the “wheel is reinvented” at the new care delivery site, often resulting in higher healthcare costs through 9  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies Cognizant 20-20 Insights What providers do and what they are paid to do are at odds. >> Health System Executive “
  • 10. You want an informed, educated, empowered patient who is given the technological tools to shape their own health course. >> Health System Executive “ repeated medical tests or more intensive patient evaluation due to lack of current medical record information. Opportunity lies in empowering patients to take ownership of their data by offering technology solutions such as apps, web portals and other interfaces that allow data to be stored in a personal repository and transferred to each healthcare provider the patient desires. This data aggregation would help paint a complete patient profile that could shape and inform the care received, thus creating a patient-centric approach to care delivery. Power asymmetry High-quality care requires that all parties actively engage in creating positive and lasting health outcomes. Healthcare today is often driven by providers; patients become injured, ill or mismanage their chronic condition and expect providers to “fix” them, thereby relinquishing their “power.” This power asymmetry often leads to inefficient and uninformed care. Technology and digital health solutions address this issue by allowing patients to own their health, own their data, become more engaged and interact with the provider in unique ways. 10  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies Cognizant 20-20 Insights
  • 11. Provide greater price transparency One issue that riddles the healthcare industry is the lack of price transparency. This creates immense barriers to promoting an informed, engaged and aware patient population. Patients’ desire to gather intel and make informed, cost-effective healthcare decisions is growing, but the resources to enable them to access this relevant information are lacking. Significant challenges regarding price transparency include: ❙❙ An increase in high-deductible health plan (HDHP) prevalence causes patients to become more sensitive to healthcare costs and often to delay care. ❙❙ Convergence between payers and providers is still in the beginning stages. Increase in HDHPs The increased prevalence of HDHPs subsequently increases the patient-pay portion of medical bills. As a result, patients have become increasingly sensitive to the cost of care. According to a 2018 consumer survey conducted by Leavitt Partners, 32% of respondents stated they are very concerned about their ability to pay medical bills not covered by insurance, and 23% conveyed they are somewhat concerned. These numbers have increased by 7% percent and 4%, respectively, since 2017. Several healthcare “shopping tools” are available, but the industry faces two issues that have hindered the usage of these resources: (1) providing patients with accurate prices for medical services in the current regulatory environment is extremely difficult,10 and (2) patients are significantly underutilizing the solutions that are available.11 As the adoption of value-based care continues to increase, price transparency will likely become more of a reality. This will enable provider organizations to market more accurate prices and quality metrics to patients.12 However, this marketing of prices and outcomes will not significantly impact the healthcare industry unless patients utilize the information made available to them to make informed decisions about their health. Patients are simply underutilizing these services, again, largely due to a lack of awareness and understanding. There is a substantial need to educate patients about these price-comparison tools — how to use them, how to interpret them, etc. Doing so could contribute to improved quality and lower healthcare costs. As patients use these tools more frequently as consumers of healthcare, they will be able to “shop around” and price-compare various procedures, therapies, treatments and pharmaceuticals as well as price variances in sites of care. Convergence between payer and provider Consumerism calls for convenient, functional high- quality services. A payer-provider convergence is required to deliver on these expectations. An empowered patient-consumer market demands effective personalized care that is corroborated holistically among industry operators. This “ecosystem approach” requires that organizations bring together disparate sources of information to create an integrated view across payers, providers and consumers by orchestrating engagement, insights and services. Payers and providers often have aligned incentives, which would ideally increase price transparency; but that is often not the case. Providers benefit from concealing their prices when contracting with payers, which contributes to patients’ inability to receive prices for various procedures or sites of service. Finding a win-win contractual relationship between payer and provider in the quality-based contracting environment has proved to be challenging.13 11  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies Cognizant 20-20 Insights
  • 12. Technology solutions, such as improved patient engagement tools and efficient data exchange platforms, can play a significant role to facilitate this convergence, enabling it to occur effectively, with added focus on a patient-centered model of care. These digital health technologies can help solidify and deepen the patient relationship with both providers and payers and align incentives across stakeholders to promote improved transparency. Bringing all disparate parties together to interact on a consolidated, integrated platform with the consumer at the center presents a substantial opportunity for the industry, which can contribute to higher-quality, lower-cost care. 12  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies Cognizant 20-20 Insights
  • 13. Looking ahead The U.S. healthcare system is undergoing a transformation similar to the ongoing digital revolution that has changed traditional business models and empowered consumer engagement in multiple industries. As the healthcare industry continues to shift to value-based care and as consumerism surges, investments in digital health and technology solutions will become increasingly important and prolific. More specifically, as more hospitals and health systems shift to risk-based payment models, liberate and leverage healthcare data, develop better tools to stratify and predict impactable risk, and generate real-time actionable insight, these priorities become essential for future financial viability and success. Similarly, as patients become more engaged consumers of healthcare, providers will continue to reevaluate how they interact with patients by improving patient engagement tools, empowering patients through data ownership and providing greater price transparency. Ultimately, as organizations across the healthcare ecosystem adapt and, in many instances, converge to thrive in the emerging patient-centric, value- based healthcare system, technology that facilitates connectivity between disparate stakeholders, including patients, payers and providers, will be a foundational cornerstone that enables high-quality, cost-effective care. 13  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies Cognizant 20-20 Insights
  • 14. Cognizant 20-20 Insights 14  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies Endnotes 1 “What is Value-Based Healthcare?” New England Journal of Medicine (NEJM) Catalyst, Jan. 1, 2017, https://catalyst.nejm. org/what-is-value-based-healthcare/. 2 Leavitt Partners Intelligence Interviews, December 2018. 3 “OCR Requests Information from Stakeholders on Significant Changes to HIPAA Rules” The National Law Review, December 20, 2018, www.natlawreview.com/article/ocr-requests-information-stakeholders-significant-changes-to- hipaa-rules. 4 Leavitt Partners Intelligence Interviews, November 2018. 5 Leavitt Partners Intelligence Interviews, December 2018. 6 Sy Mukherjee, “FDA clears the first-ever mobile app to treat alcohol, marijuana, cocaine addiction,” Fortune, September 14, 2017, http://fortune.com/2017/09/14/fda-alcohol-marijuana-cocaine-mobile-app/. 7 Leavitt Partners Intelligence Interviews, December 2018. 8 “Factsheet Telehealth” American Hospital Association, 2018, www.aha.org/system/files/2018-04/fact-sheet- telehealth-2018.pdf. 9 “Final Policy, Payment, and Quality Provisions Changes to the Medicare Physician Fee Schedule for Calendar Year 2019.” Centers for Medicare and Medicaid Services (CMS), November 2018, www.cms.gov/newsroom/fact-sheets/final-policy- payment-and-quality-provisions-changes-medicare-physician-fee-schedule-calendar-year. 10 “Health Care Price Transparency: Can It Promote High-Value Care?” The Common Wealth Fund, 2019, www.commonwealthfund.org/publications/newsletter-article/health-care-price-transparency-can-it-promote-high- value-care. 11 Austin Frakt, “Price Transparency Is Nice. Just Don’t Expect It to Cut Health Costs.” New York Times, December 2016, www.nytimes.com/2016/12/19/upshot/price-transparency-is-nice-just-dont-expect-it-to-cut-health-costs. html?module=inline. 12 “CMS Finalizes Changes to Empower Patients and Reduce Administrative Burden.” Centers for Medicare & Medicaid Services (CMS), August 2018, www.cms.gov/newsroom/press-releases/cms-finalizes-changes-empower-patients-and- reduce-administrative-burden. 13 Christopher J. Donavan. “Six Key Investment and Strategic Themes from Payer-Provider Convergence Deals.” The National Law Review, June 2018, www.natlawreview.com/article/six-key-investment-and-strategic-themes-payer-provider- convergence-deals. Methodology Findings in this issue brief are the culmination of both primary and secondary research conducted by Leavitt Partners, a health intelligence consulting firm founded by former Secretary of Health, Gov. Mike Leavitt. Primary research featured a series of 12, 60-minute interviews with key executive decision- makers at influential hospitals and health systems throughout the U.S. in November and December 2018. Interviewees included chief information officers, chief medical information officers, chief strategy officers, chief operating officers, etc. Secondary sources that informed the issue brief findings have been cited throughout the document.
  • 15. 15  /  Value-Based Care and Healthcare Consumerism: Opportunities for Health IT and Technologies Cognizant 20-20 Insights
  • 16. © Copyright 2019, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means,electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners. Codex 4502 World Headquarters 500 Frank W. Burr Blvd. Teaneck, NJ 07666 USA Phone: +1 201 801 0233 Fax: +1 201 801 0243 Toll Free: +1 888 937 3277 European Headquarters 1 Kingdom Street Paddington Central London W2 6BD England Phone: +44 (0) 20 7297 7600 Fax: +44 (0) 20 7121 0102 India Operations Headquarters #5/535 Old Mahabalipuram Road Okkiyam Pettai, Thoraipakkam Chennai, 600 096 India Phone: +91 (0) 44 4209 6000 Fax: +91 (0) 44 4209 6060 About Leavitt Partners Leavitt Partners is a healthcare intelligence business. The firm helps clients navigate the evolving role of value in healthcare by informing, advising and convening industry leaders on value market analytics, alternative payment models, federal strategies, insurance market insights and alliances. Through its family of businesses, the firm provides investment support, data and analytics, member-based alliances and direct services to clients to support decision-making strategies in the value economy. For more information, visit leavittpartners.com. About Cognizant Healthcare Cognizant’s Healthcare Business Unit works with healthcare organizations to provide collaborative, innovative solutions that address the industry’s most pressing IT and business challenges — from rethinking new business models to optimizing operations and enabling technology innovation. A global leader in healthcare, our industry-specific services and solutions support leading payers, providers and pharmacy benefit managers worldwide. For more information, visit www.cognizant.com/healthcare. About Cognizant Cognizant (Nasdaq-100: CTSH) is one of the world’s leading professional services companies, transforming clients’ business, operating and technology models for the digital era. Our unique industry-based, consultative approach helps clients envision, build and run more innovative and efficient business- es. Headquartered in the U.S., Cognizant is ranked 195 on the Fortune 500 and is consistently listed among the most admired companies in the world. Learn how Cognizant helps clients lead with digital at www.cognizant.com or follow us @Cognizant.