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Industry models for health careGet deeper insights faster: Implementing adata warehouse with the IBM Health Plan Data Mode...
Industry models for health care         Executive summary         While change is a constant in virtually every industry t...
Industry models for health careAchieve greater insight for greater profitabilityFaced with so many challenges, health plan...
Industry models for health careA robust data model that is extensible and scalableto fit a health plan’s unique environmen...
Industry models for health care• Improve medical management — The more granular                    A blueprint for success...
Industry models for health careWith the IBM Health Plan Data Models, it becomes easier              Health Plan Business S...
Industry models for health care                                                                                     Summar...
Why IBM?IBM has spent decades helping businesses generate, 	manage and extend their enterprise data warehouses, 	and offer...
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IBM Health Plan Models


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IBM Health Plan Models

  1. 1. Industry models for health careGet deeper insights faster: Implementing adata warehouse with the IBM Health Plan Data Models.
  2. 2. Industry models for health care Executive summary While change is a constant in virtually every industry today, few industries are changing as rapidly as the health care industry. As the transformation to a consumer-centric business model continues to gain momentum, the health care industry could see more change in the next three years than it has seen in the last thirty. The consequences of this transformation are far-reaching. Added to the ever-present challenges of cutting costs, improving the quality of care and keeping pace with regulations, there are greater demands on health plans to stay ahead of the competition — by offering new products and services, anticipating customer needs and providing superior service. This in turn depends on a deep knowledge and understanding of members, providers, brokers and partners, and finding new ways to deepen existing relationships. But for many health plans, the information that is critical to understanding customers and operations is not easily accessible. While there’s no shortage of data, it’s often spread across numerous information silos and in multiple formats, making it nearly impossible to turn this information into the type of actionable insight that can drive competitive differentiation. The Health Plan Data Models from IBM provides a blueprint for a comprehensive data warehouse and theIBM Industry Models speak the language of business. business intelligence applications that run on it, as well as the foundation for an operational model based on data architecture best practice principles. This executive brief discusses how the Health Plan Data Models can help you establish a platform to gain a more complete understanding of your members, providers, partners and thereby help you choose the best strategies for: • Aligning IT with business goals. • Offering differentiated products and services. • Streamlining administrative operations. • Facilitating compliance measures. • Promoting effective decision making. • Encouraging environmental evolution.
  3. 3. Industry models for health careAchieve greater insight for greater profitabilityFaced with so many challenges, health plans have respondedin a number of ways to try to lower costs — from consolidationthrough mergers and acquisitions, to reducing benefits levels.At the same time, they’ve sought to gain critical customerinsights by implementing one or more data warehouses or Yet health plans typically lack an integrated and conformeddata marts to gather information. analytical information space that can effectively extract meaningful information from a wide range of disparate data.But these efforts are no longer enough. Many health plans Instead, collecting and analyzing the data often falls on thehave simply outgrown the functionality and effectiveness of knowledge worker, who must:their current data models, and cannot achieve the level ofdata analytics capabilities necessary to fully understand the • ccess multiple applications and databases, such as Abroad range of activities conducted by its consumers and multiple claim systems.operations. And as we move into an age of consumerism, • ind and interpret disparate data from multiple sources Fparticularly in an industry where there are multiple consum- of information.ers — member, employer, provider and broker — the need for • erform manual calculations to find out information, such as Pdata is critical. how many additional costs are incurred for out-of-service plans or formulary medication spending.What is needed to meet these demands are innovative solu-tions that can provide the foundation for a broad range of Business Solution Template Focus Areasquery-based and real-time business intelligence activities Sales andthat can effectively integrate and analyze information from ÓCampaign ÓProduct Management Marketing ÓBrand/Product Marketing ÓRetail Salesa wide range of data sources. The foundation needs to be ÓMembers Servicerobust enough to support current needs and extensible and Membership ÓMember Retentionscalable enough to support future requirements that may Provider andstill be unknown. The bottom line is that health plans today Network ÓProvider Performance and Qualityneed the business intelligence capabilities that will enable Medical ÓDisease Management ÓPharmacy Benefitsthem to respond and get in front of anticipated and unantici- Management ÓUtilization Managementpated changes that are expected to occur in this dramatically ÓClaim Handling ÓCo-Ordination of Benefitsdynamic market. Claims ÓDisbursements ÓClaims Adjudication ÓClaim Recovery ÓUnderwriting Financials ÓProfitability Key performance indicators help to quickly specify reporting requirements.
  4. 4. Industry models for health careA robust data model that is extensible and scalableto fit a health plan’s unique environment offerssignificant competitive advantage through the abilityto create an analytical data store that connects to Enrollment Benefits Med Claims Lab Results Providers Rx Claimsall of your critical data, across disparate systems Health Plan Data Sourcesand formats, across diverse departments and otherdata providers. It helps you build a dynamicanalytics world, where data collected internallyand externally is used to determine how to arrange, Enterprise Data Warehouse Modelalign, deploy and improve services to members.It forms the foundation of a true Information Queries Multi-dimensional Statistical analysis Dashboards MapsOn Demand infrastructure — where trusted, relevant and reports cubes visualization Advanced Analyticsinformation is available to the people who need it,when they need it, so they can make better and The models lead to an integrated view of health plan information.more timely decisions.In short, it provides the foundation for deeper insights, • Improve claims handling and adjudication — Analyzing claimsenabling you to more easily: processing information, benefits management partners and claims processing vendors can help you identify areas of• Understand members and groups — Meeting the demands of underperformance, overpayment, and fraud and abuse.members and sponsors requires a careful evaluation of the With this information in hand, you can take corrective actionservice and programs you deliver. By doing so, you can to minimize risks and revenue leakage and help:discover new ways to reach them — from incentive programsfor behavior modification to medical advocacy and disease • Utilize more clinical programs. • Improve auto-adjudication rates. • Provide point-of-service adjudication.• Understand providers and networks — With deeper insights, • Improve member liability can more clearly evaluate the performance and qualityof contracted providers. The first step toward pay-for-performance programs, you can identify high-performancenetworks and achieve greater pricing transparency.
  5. 5. Industry models for health care• Improve medical management — The more granular A blueprint for successthe information you have, the better chance you have of The only thing more critical than having the right dataunderstanding the ways medical care is utilized. The ICD-10 warehouse solution is how you implement it. The more youstandard — created and adopted by the World Health can reduce the time and cost required upfront, the greaterOrganization (WHO) in 1994 — already offers greater detail value you can achieve. The platform-independent Health Planto improve analysis. With effective analysis technologies to Data Models offering contains thousands of hours’ worth ofmore effectively stratify members, you can build on this infor- development effort and expertise to help business usersmation to identify areas for targeted programs, e.g., identifying and IT staff implement an enterprise data warehouse on timehigh-risk patients to support care and disease management. and on budget.• Offer new products and services — Analyzing and comparing The Health Plan Data Models offering builds upon the market-the effectiveness of customer and product promotions and sales leading IBM Insurance Application Architecture offerings forcan help you better determine how to differentiate offerings. life, property and casualty insurance firms, but are designedWhen you understand the activities of members, you can exclusively for the health plan industry. The models providecategorize them to better understand patterns of utilization, a glossary of requirements, terms and concepts that can befine tune underwriting, and craft new consumer-directed clearly understood and communicated by both business and IT,products and services to reach new market areas such as thereby helping to accelerate project scoping, appropriatemedical tourism and retail medicine, while improving member reporting, data quality and data requirements and identifyingretention along the way. sources of data. Ultimately, it acts as a blueprint by defining the structures necessary to build an effective data warehouse• Improve underwriting and profitability — Analyze products, and provides health plan managers with critical pre-builtfeatures and return on investment and risk factors to better reporting templates that offer a wide and deep view of theirinform decisions on underwriting a product or group. business through key performance indicators and other measures.Or perform actuarial financial analysis to determine ratesand premiums for products. By doing so, you can speed thetransformation from a product company to a services companyand position your organization for rapid margin growth.
  6. 6. Industry models for health careWith the IBM Health Plan Data Models, it becomes easier Health Plan Business Solution Templatesto more accurately analyze cost per insurer, evaluate cost The Health Plan Business Solution Templates consist ofagainst quality of care and measure the effectiveness of numerous best practice key performance indicators thatfee-for-service programs. Even seemingly overwhelmingly enable business managers to quickly and easily specifytasks like providing a complete audit trail of care management analytical reporting requirements that form the basis of reportsfrom delivery to outcome become simpler. and executive dashboards. The templates are grouped into focus areas and provide the framework to rapidly define andSome of the key components include: deliver high-value business intelligence applications.IBM Health Plan Data Model You can implement them in phases — choosing the capabilitiesThe IBM Health Plan Data Model is an enterprise-wide that can benefit your business the most today, then build outframework that defines how multiple sources of data should be more as your needs change. Business users can also easilyconsolidated into a single, extensible and scalable structure work with the templates to specify their own analytic reportingthat enables the use of creative business analytics to extract requirements. The solution templates feature data mart designsuseful information from a large array of data sources. The for the following business areas:solution delivers an enterprise-wide vocabulary of more than1,000 healthcare business terms to support requirements • Claims handlinggathering and provide common semantic definitions. • Claims adjudication • Claims recoveryHealth Plan Data Warehouse Model • Disbursements analysisThe Health Plan Data Warehouse Model is designed to • Coordination of benefitsdeliver more than 80 percent of the data structures typically • Campaignneeded by a health plan for a comprehensive enterprise data • Brand/Product marketingwarehouse. Independent of any particular account, product, • Product managementorganization or channel hierarchy, the physical data ware- • Retail saleshouse database definition can be automatically generated • Member servicethrough the use of a modeling CASE tool such as ERwin • Member retentionor Rational Data Architect. Once generated, the model is • Provider performance and qualitydesigned to be highly extensible and adaptable to accommo- • Disease managementdate current customizations and future needs. So, as the payer • Utilization managementenvironment transforms from a product-based business model • Pharmacy benefitsto a service-based business model, the HPDW will be there • Underwritingto support virtually every phase. And as health plan industry • Profitabilityrequirements change, the HPDW can continually expand toaccommodate them without causing disruptions to existingmodel customizations.
  7. 7. Industry models for health care SummaryThe IBM Health Plan Data Models can help reduce the riskof implementing a data warehouse while considerably The Health Plan Data Models from IBM reaches far beyondreducing time and cost. Key benefits: simple data gathering. It offers a significant competitive advantage through the ability to continuously process data, • Enables business users to easily scope and customize their own requirements from member information to medical care utilization, • Facilitates step-by-step, business-focused development and rollout and transform it into information-led business initiatives. By unlocking information contained in individual applications • Delivers regularly updated business, technical and regulatory content and repositories from a variety of vendors and making it readily available to the people and processes that need it, • Manages definitions and standards in complex IT environments the Health Plan Data Models from IBM get you one step closer to a true Information On Demand infrastructure. • Sets the foundation for real-time analytics model Health Plan Data Warehouse Solution • Data architecture based on data modeling best practices This comprehensive solution offering exploits a range of components from across the IBM software platform as well • Is aligned with Master Data Management and SOA strategy going forward as best-in-class Business Partner applications. These include • Is continually updated to reflect changes and trends in the healthcare industry some or all of the following: • BM Information Server — for delivery of trusted, consistent I and reusable informationGet flexible • BM DB2® Data Warehouse Edition — integrated platform IWith their strong business and IT orientation, the IBM for dynamic data warehousingHealth Plan Data Models can be customized to reflect the • BM WebSphere® Customer Center — real-time, transactional Iexact needs of every company using them, including the customer data integrationareas that are specific to their business and unique • IBM Rational® Data Architect — enterprise data modeling toolcompetitive advantages. Even more important, the models • usiness Intelligence applications — tools from IBM Bare flexible enough to evolve with the ever-changing require-ments of the health plan industry. Unlike proprietary solutions, Business Partnersthe open standards-based health plan data model solutionmakes it easy to build out additional features on demandand readily accommodates extensions.
  8. 8. Why IBM?IBM has spent decades helping businesses generate, manage and extend their enterprise data warehouses, and offers extensive health plan expertise and industry best practices, as well as leading information management © Copyright IBM Corporation 2007solutions. Employing more than 1,500 consultants and IBM Software Group service professionals dedicated to data warehousing Route 100 Somers, NY 10589 and data management, IBM is ready to help you: U.S.A. Produced in the United States of America • ower your total cost of ownership by exploiting L 03-07 All Rights Reserved open standards architectures. DB2, IBM, the IBM logo, Rational and WebSphere• treamline operations by automating administration S are trademarks of International Business Machines of your information infrastructure. Corporation in the United States, other countries, or both.• everage the latest hardware and software technologies, L Other company, product and service names as well as health plan best-practices information services. may be trademarks or service marks of others.• inimize risk and improve time-to-value with proven results. M• Maximize results across your enterprise.• BM rated number one in business intelligence I by Gartner in 2006.For more informationTo find out how IBM can help you start unleashing the powerof your enterprise information, contact your IBM representativeor IBM Business Partner, or visit: data/ips/products/industrymodels/.