Healthcare Technology

Part
01
of ten
Part
01

Revenue Cycle Management: Cedar Health, Simplee, Waystar

Cedar Health is an early-stage venture company. Flywire acquired the company Simplee in February 2020. Waystar has acquired 7 companies to date.

Cedar Health

Simplee

  • Simplee announced the development of a personalized billing solution for patients, in partnership with Cerner.
  • The company announced the new solution in September 2019.
  • The new solution is a fusion of both company's existing solutions and will enable healthcare organizations to provide support, for the payment and understanding of medical bills to patients.
  • On February 13, 2020, Simplee was acquired by the company Flywire.
  • Major customers of Simplee include Advent Health, Bon Secours, Northern Arizona Healthcare, and OSF Healthcare.

Waystar

  • Waystar reportedly contemplated issuing an IPO in the past but hasn't gone through with it.
  • In February 2020, Waystar announced the launch of an artificial intelligence platform called Hubble.
  • The platform was built to "automate revenue cycle processes" that would enable health providers to collect payments more effectively and faster.
  • Waystar was acquired by EQT for $2.7 billion, on July 29, 2019.
  • The company has acquired a total of 7 organizations including, Navicure, ZirMed, Connance, ORCS Transaction Services, Paro Decision Support, and Digitize.AI. Its latest acquisition of the company Recondo was finalized on December 4, 2019.
  • Some company's major clients are Advocate, MBMS, Piedmont Healthcare, East Tennessee Children's Hospital, and Halifax Health.

Research Strategy

To identify the IPO and acquisition information for the companies listed above, we started by searching the press/news page on their website for any official press release. Once we realized that the company website did not have any information on IPOs or acquisitions, we proceeded to check through the business information website Crunchbase. In the case that Crunchbase did not return any results, we expanded our research to industry and non-industry news websites such as Fierce Healthcare, Tech Radar (for tech company news including health technology), and Business Insider, for any news coverage with information on IPOs or acquisitions for the companies. After employing the research pathways highlighted above, our research revealed that the company Cedar is an early-stage venture, and has not released any IPO. The company has not been acquired by or acquired any company. The other two companies Simplee and Waystar, have also not launched any IPOs.
Part
02
of ten
Part
02

Revenue Cycle Management: Major Players

Cerner Corporation, Allscripts Healthcare Solutions, and eClinicalWorks are major players in the revenue management industry in the US. The requested information about the companies is presented below.

Cerner Corporation

  • A direct link to the company's website can be found here.
  • For over 40 years, Cerner Corporation has been supporting financial, clinical, and operational areas of the health system. Its clinically driven revenue cycle management (RCM) portfolio helps in optimizing workflows and controlling costs.
  • Cerner was determined to be a major player based on the number of contracted facilities in the US and market share. Over 8,803 companies use its solutions. It also enjoys a market share of 7.83% in the US.
  • Moreover, Cerner had a revenue of $5.4 billion in 2018, making it a major player in the RCM market.

Allscripts Healthcare Solutions, Inc.

  • A direct link to the company's website can be found here.
  • Allscripts Healthcare Solutions has over 30 years of experience in collaborating with providers, consumers, communities, and payers. Through its revenue cycle management services, the company helps healthcare providers to navigate their end-to-end revenue cycle and enhance their financial performance.
  • Allscripts had a revenue of $1.75 billion in 2018, making it a major player in the market.
  • The company's solutions are available in 2700 hospitals and 13,000 extended care organizations. Such an extensive network makes Allscripts a top player.

eClinicalWorks, LLC

  • A direct link to the company's website can be found here.
  • For over 20 years, eClinicalWorks has been working to improve healthcare by providing the best products and cloud-based services to its clients. Its revenue cycle management services leverage technology and efficient processes and workflows to enhance visibility.
  • With over 80,000 facilities running on eClinicalWorks, the company is definitely a major player in the market.
  • eClinicalWorks also had a revenue of over $600 million in 2019, an achievement that makes it a major player in the market.




Part
03
of ten
Part
03

Revenue Cycle Management: Major Players, 2

While Cerner Corporation and Allscripts Healthcare Solutions are both traded on NASDAQ and have made acquisitions in the last three years, eClinicalWorks is a privately-owned company and has never had an IPO nor has acquired any companies. The requested information about the companies regarding major new product launches, acquisitions, and major customers is presented below.

Cerner Corporation

IPO

  • On December 5, 1986, Cerner Corporation was listed on NASDAQ, with an IPO price of $16 per share.
  • "After adjusting for six stock splits, the split-adjusted IPO price was $0.25 and has increased at a compound annual growth rate of 19% since the initial public offering."

Major product launches

  • In May 2019, Cerner Corporation launched a "near-site health network," called Anuva, that offers employees "in person and virtual health care services," which can be accessed from multiple locations.
  • In August 2019, Cerner Corporation partnered with the Duke Clinical Research Institute and announced the development of the Cerner Learning Health Network, which will provide data to help clinicians gain insight on chronic cardiovascular disease.
  • In December 2019, Cerner Corporation launched a voice-assisted technology that makes it easier for "clinicians to document the details of a patient visit on a mobile device."

Acquisition

  • In the last three years, Cerner Corporation had only one acquisition.
  • In October 2019, Cerner Corporation acquired IT consulting and engineering firm, AbleVets, as a means to further design and implement "modernization solutions, particularly in the federal space."

Major customers

  • Praised by President Barack Obama in 2019 as a health care model, Intermountain Healthcare is a Utah-based, not-for-profit system of 24 hospitals and 210 clinics.
  • Intermountain Healthcare is utilizing a wide range of Cerner Corporation's "solutions, from clinical to financials, to support improved patient safety, quality of care, and controlled costs."
  • Boston Children’s Hospital was founded in 1869 with only 20 beds for patients and today, it’s ranked as “the number one pediatric hospital in the nation by U.S. News and World Report.”
  • Boston Children’s Hospital conducts a lot of research and utilizes Cerner Corporation's solutions, which has helped the hospital cut about "80 percent of its previous costs since implementing Cerner’s Immunization Forecaster in 2018."

Allscripts Healthcare Solutions, Inc.

IPO

Major product launches

  • In March 2018, Allscripts unveiled a new machine learning electronic health record called, Avenel. Avenel is mobile-first and cloud-based, and creates patient records that can be shared across communities.
  • In October 2019, Allscripts and Northwell Health announced that they are jointly developing "the next-generation electronic health record" that will be cloud-based and voice-enabled.

Acquisitions

  • In October 2017, Allscripts acquired "McKesson Corporation’s hospital and health system IT business, known as the Enterprise Information Solutions (EIS) business," for $185 million. The EIS business transaction expanded Allscripts' solutions portfolio and client reach in American "hospitals and health systems."
  • In January 2018, Allscripts acquired EHR platform Practice Fusion for $100 million. Allscripts said the transaction expands its client base "in U.S. physician practices" and the "combined scale of clinical data and tools will help bring life-changing therapies to market sooner."
  • In May 2018, Allscripts acquired HealthGrid Holding Company to further expand its "patient engagement solution focused on connecting consumers with providers."
  • In October 2018, Allscripts acquired Evalytica, a cloud-based platform that analyzes data for life science companies.
  • In June 2019, Allscripts acquired drug prescribing startup, ZappRX. Allscripts said, "Allscripts is excited to add ZappRx’s platform to our growing portfolio. The specialty-prescribing space is a key focus area for Veradigm, our payer and life sciences business unit."

Major customers

  • In February 2008, Mankato Clinic selected Allscripts' electronic health record "to connect and automate clinical tasks for their 113 multi-specialty physicians and practitioners, and enhance their quality initiatives."
  • Today, Mankato Clinic is still utilizing Allscripts' electronic health record to distribute workloads and ease clinicians' frustrations.
  • For many years, Phoenix Children’s Hospital has been using Allscripts "as its EMR vendor across all locations, including inpatient, ambulatory, and emergency."
  • University Hospitals in Cleveland, Ohio is using Allscripts to decrease "rates of opioid-related death and addiction."
  • By utilizing Allscripts' solutions, University Hospitals saw a "13 percent drop in opioid prescriptions by family practice physicians and a 21 percent drop by internal medicine physicians" from October 2017 to March 2018.

eClinicalWorks, LLC

IPO

Major product launches

  • In June 2017, eClinicalWorks launched a telehealth solution that provides patients with live video visits. Called Healow, the solution "supports workflow, clinical research and improves patient satisfaction with access to care whenever and wherever it’s needed."
  • In December 2017, eClinicalWorks launched a virtual assistant named Eva. Eva is an electronic health record tool that assists "clinicians with prescription ordering, locating patient medical histories, and viewing lab test results."
  • In February 2018, eClinicalWorks launched "a cloud-based platform for Acute Care EHR and Revenue Cycle Management" that will cost health care providers $599 per bed per month.

Acquisitions

  • eClinicalWorks has never made any acquisitions, according to Sameer Bhat, eClinicalWorks vice president and co-founder.

Major customers

  • Arkansas Heart Hospital has been using eClinicalWorks since April 2013.
  • Arkansas Heart Hospital has utilized eClinicalWorks solutions to receive "on-site training, free data conversion, and an EHR with custom-made worksheets and features focused on the diagnosis and treatment of cardiovascular disease."
  • Big Sur Health Center started using eClinicalWorks in 2009 to protect patient information. This action allowed eClinicalWorks' solutions to help "deliver medications" to patients "during the winter of 2016 – 2017, when landslides and bridge collapses left the community isolated."
  • CityMD, an urgent care provider in New York City, uses eClinicalWorks' electronic health records solution across "its approximately 300 providers in 52 locations."
  • eClinicalWorks' solutions have improved CityMD's workflow, increased patient visits, and wait times reduced by about 10 percent.
Part
04
of ten
Part
04

Healthcare Industry: Patient Management Challenges

Following exhaustive research, we were able to identify data management and shortage of health professionals as the 2 major challenges faced in patient management in the US. The research details the description of each challenge, why it is a challenge and how each challenge is impacting the health care industry as a whole.

Data Management

  • Health care data management can be defined as the process of capturing, processing, analyzing, storage, and retrieval of data generated from multiple sources.
  • This is important as it facilitates the generation of valuable information on patients and treatments, enhances communications, increases efficiency and effectiveness of processes within health institutions, and improves the health care industry as a whole.
  • The effective and correct use of data management in health care impacts the industry in several ways, including reduction of health costs, improved health care, and improved efficiency in health care operations and processes.
  • Data within the health care industry is fragmented which makes the integration of this data into unified information that provides insights one of the biggest challenges. The data comes in different types of formats including papers, medical imaging, and structured data. This information is derived from multiple players in the industry such as patients, health care providers and specialists, insurance companies, and health care and supply chain entities.
  • A lack of properly managed data within the health care industry can lead to compromised data, poor communication, missed or conflicts in patient appointments, wrong patient diagnosis and treatment, and difficulties in monitoring changes in patient conditions.

Shortage of Doctors

  • Historically, it was predicted in 2017 by the Association of American Medical Colleges (AAMC) that the health care industry in the US will face challenges resulting from a shortage of health care professionals. In a 2019 press release of AAMC, it continues to be a challenge due to the rising demand for physicians.
  • The aging population, the growth of the US population, and the retirement of physicians are the key drivers of this shortage.
  • This shortage of physicians has a significant negative effect on patient management and the health care industry in general as it increases patient costs, reduces accessibility to physicians, and lowers the quality of health care delivery and health care management to patients.
  • The AAMC estimates that despite the emergence of new and improved methods in health care, the industry will suffer a shortage of nearly 122,000 health care professionals by 2032.
  • The shortage of health care professionals includes those that provide primary health care, pathologists, and specialty surgical doctors as well as mental and dental physicians.


Research Strategy:

In order to identify the biggest challenges facing health care institutions, the team searched for information on American government websites, American medical association websites, blogs, and press releases. Following the research, we were able to determine the above-mentioned challenges to be the biggest and most significant as they both directly impact patient management, as well as all other major players across the industry including physicians, suppliers, and institutions.

Part
05
of ten
Part
05

Healthcare Industry: Payments Challenges

The money consumers spend on healthcare in the United States is higher than anywhere in the world. Advancements in technology have required that medical providers and institutions enhance their payment platforms. Despite efforts to remain current with payment management technology, healthcare providers face two significant challenges — the need to protect patient data and consumer demand for multiple payment options.

Protecting Patient Data

  • In a recent survey conducted by BillingTree, healthcare collection agencies, multilocation hospitals, and single location medical practices were asked to rank their top priority in selecting a payment processing service. HIPAA compliance was ranked as the most important factor.
  • Healthcare payments must be handled differently from retail credit card purchase transactions. When the patient pays with a credit card, which is the most common form of payment, the card is "swiped/dipped/tapped" into a payment terminal and the credit card information is immediately encrypted. The patient's health-related information must be held and secured separately from the billing application.
  • Online and mobile payments are particularly challenging, as credit card numbers are frequently maintained as a "card on file." Given the sensitive nature of PHI and cardholder data, specific security controls, such as encryption and tokenization must be utilized.
  • Elavon, a leading global merchant processor, recently interviewed hundreds of patient and healthcare information technology executives in the United States. The survey revealed that 97% of healthcare consumers believe payment security is important.
  • Industry experts warn that outdated payment processing systems are frequently the cause of patient data breaches. Providers must focus not only on protecting the health of their patients, but also the personal and financial data shared with the medical practice.
  • When compared with other industries, healthcare institutions have the greatest need for privacy in their payment management systems because of HIPAA's PHI regulations.

The Demand for Different Payment Options

  • Healthcare payment systems have failed to address consumer demands for alternative payment methods, usually because providers rely on "legacy processes." The Elavon survey revealed that the healthcare payment experience "has not evolved" as much as payment processes in other industries.
  • When given a list of miscellaneous industries, 46% of Elavon survey respondents listed healthcare as the "hardest industry" to work with in terms of making payments. This was the highest percentage result among all industries.
  • 90% of healthcare providers have a payment management system that offers HSA/FSA debit cards and traditional credit/debit cards as forms of payment. Half of those surveyed indicated that their system allows for payments to be processed through an interactive voice response system. 60% plan to include web payment options within the next year.
  • Nearly one third of medical payment systems do not have a payment option integrated into their platform. Mobile, point-of-sale tablet sales are only offered in 34% of payment platforms. Patients are accustomed to tablets in the medical office setting, as most providers now use them as part of the intake process.
  • Medical payment platforms do not typically offer support for digital wallets, with only 25% reporting it as an option.
  • Payment preferences are clearly generational. The Elavon Study demonstrated that 42% of millennials would select online banking bill payment, as compared to 21% of those aged 38 and older. Mobile apps and PayPal were predominantly used by those under the age of 55. Only 5% of respondents over the age of 55 indicated they would use a mobile app or PayPal, citing their preference to pay at the time of service, by mail, or by using an online portal.
  • Laurie Hurwitz, Executive Director of Revenue Cycle at Gundersen Health System, claims that patients expect the same level of convenience in paying their medical bills as they do for their other expenses. She advocates for practices encompassing a mobile payments option in their payment management systems, as this feature allow patients to manage their balances either by submitting a full payment or by establishing a payment plan.
  • Industry experts believe that an "omni-channel, integrated payments strategy" is the best platform to provide a positive patient payment experience. Digital payment innovation is necessary in order to meet the demands of today's healthcare consumer.
  • Healthcare analysts indicate that providing a streamlined, multi-option payment system to patients is critical for practice solvency. Practitioners will be paid more quickly and with fewer issues, and patients will remain with the practice because their needs have been accommodated.

Research Strategy

In order to conduct this research, we searched through a variety of industry-related articles, websites, and blogs. We carefully reviewed the findings of two major surveys conducted on healthcare payment management systems. We also reviewed the marketing strategies of leading software developers of these types of systems. After comparing the survey results with the types of features being promoted by the software companies, it was evident which two challenges are prevalent in the payment platforms of healthcare institutions today.
Part
06
of ten
Part
06

Healthcare Technology for Institutions: Barriers

Despite consumer demand and clear benefits to both the patient and provider, many healthcare institutions remain hesitant to adopt new healthcare technologies, such as digital payment systems and electronic health records (EHR). Some of the major barriers for providers include an overall resistance to change, standardization issues with the healthcare industry, financial concerns and security/privacy risks.

I - Physician/Staff Resistance & Technical/Training Issues

  • According to MGMA's 2017 Digital Payments Progress Report, 77% of medical groups are still using paper billing processes, while another survey of more than 50 large healthcare providers revealed that 59.9% of respondents had no plans to invest in digital payment technology in 2019.
  • Many studies suggest that the most significant barrier to implementing EHR within healthcare organizations is provider apprehension and resistance to change.
  • Not only are physicians often resistant to adopting new technologies in the first place, but there are also concerns about the ongoing training required to keep up with changing software requirements.
  • Training and the lack of a well-trained workforce to help lead the transition/process was another barrier identified in the adoption of EHRs.
  • For physicians used to relying on pen and paper, concerns about technically supporting a system and dealing with potential technical issues—such as computer crashes, programming errors and data capture anomalies—were all considered risks of adopting EHRs.
  • Another study revealed that many physicians view EHR systems as more difficult to use than paper-based records and believe that they reduce practice productivity/disturb workflow, at least during the initial implementation phase.
  • Although digital payment systems are generally thought to benefit healthcare providers, EHR systems were seen as benefiting the patient/payer more than the provider, which was a barrier for some medical groups.
  • Beyond the cost of purchasing a new technology, healthcare providers also consider the resources and training required to acclimate the staff to the new system and the productivity that may be lost as they transition from old technology.

II - Complexity of the Healthcare System/Standardization Issues

  • In comparison to other retail environments, healthcare payment processing is complex and commonly calls for installment payments and payments from multiple payees (patient and insurance provider), which can make adopting new digital payment systems intimidating for some providers.
  • In a 2006 study by the Healthcare Financial Management Association (HFMA), "lack of national information standards and code sets" was the number one reported barrier to implementing EHRs among 176 respondents, with standardization limits being a primary barrier across a variety of research studies.
  • A lack of universal standards was also cited as a barrier to digital payments and processing within the U.S. healthcare system.
  • Pertaining to the adoption of EHR technology specifically, system interoperability and a lack of health information data standards were also barriers indicated in several studies, as they make it difficult for providers to share or transfer data.

III - Lack of Funding or Cost Concerns

  • In the above mentioned HFMA study, the second most significant barrier to implementing EHRs was lack of available funding (59%), as EHR products are perceived as expensive/requiring a major investment.
  • Providers may also be weary of the fees associated with utilizing an electronic payment system. According to MGMA research, 17% of providers pay fees in order to use their digital payment system.
  • Other studies regarding the adoption of EHR systems also cited a misalignment of cost/benefits and financial reimbursement as major barriers.
  • Other providers may not believe that a digital payment system will alleviate their revenue issues, or would provide a poor lack of return on investment.
  • More research also indicates that financial risk, or billing errors in the software, was a concern for many in the adoption of EHR systems.
  • One resource suggested that providers run a return on investment analysis to determine whether switching to digital payments was a smart decision, noting that this may not be a cost-effective option for a lone physician working in a less populated rural area.
  • Others were concerned about EHR software systems becoming obsolete or vendors going out of business, which could represent a significant financial burden to providers who had invested time and money into implementing such systems.

IV - Privacy and Cybersecurity Concerns

  • The healthcare industry is known for being particuarly risk averse, which may make providers more weary of digital technology and cybersecurity threats/fraud, especially considering the sensitive personal data stored in patient medical files and financial transactions.
  • One recent study showed a 125% increase in cyberattacks and hacking attacks specifically against the healthcare industry over a five-year period, which could make providers leery.
  • Healthcare providers also have the additional challenge of managing HIPAA compliance and protecting the privacy of their patients to avoid legal/reputational problems.
  • Another survey revealed that 90% of provider and payer respondents were concerned about payment security, whereas 59% of patients were concerned about payment security.
  • Concerns about privacy and confidentiality were also stated as major barriers in several studies on the implementation of EHR technology among healthcare providers.
  • Despite security concerns, one survey found that most healthcare organizations failed to utilize basic cybersecurity best practices, with only one-third of providers using even a single best practice (such as data encryption).

Research Strategy

In our research, we found that barriers to the adoption of healthcare technology were too various to note just 2-3 key barriers, so we expanded to include four main areas of concern. Because information on digital payment systems specifically was less available and often tied into the discussion of EHRs, we also chose to include what we thought were valuable insights into the barriers to this additional healthcare technology.
Part
07
of ten
Part
07

Healthcare Technology for Consumers: Barriers

Some of the key barriers consumers/patients face when adopting healthcare technology include privacy and security concerns as well as complex interface and limited use for the patient portal.

Privacy and Security Concerns

  • According to a recent Kantar survey, despite 53% of Americans agreeing that technology is helping them have a more connected relationship with their healthcare providers, only 38% of them believe that their health data is safe.
  • These privacy and security concerns are barriers to the adoption of healthcare technology because they have a significant and direct impact on the adoption because they sort of determine whether consumers will use the tech or not.
  • Reports from BMJ and JAMA among others further validate the concerns that patients have in regards to them adopting healthcare technology because they show how health apps and other technologies share user data without transparency.
  • Privacy and security concerns have impacted the adoption of healthcare technology by leading to slow adoption rates and current usage as indicated by research from NCBI.
  • However, despite the privacy and security concerns, 50% of Americans trust in the ability of artificial intelligence to deliver health benefits

Complex Interface and Limited Use for Patient Portal

  • A 2017 Government Accountability Office (GAO) stated that although 90% of healthcare providers offer access to portal systems, only one-third of their patients use it.
  • The main reason why patients are not using the system is because they do not believe they need regular access to their healthcare records thus limited use. Moreover, some of the information on the platforms such as lab results are not easy to understand without the help of a doctor.
  • In addition to having limited use for the portal, patients also find the interface complex to use.
  • These two are barriers and they impact the adoption of healthcare technologies because if patients do not get mobile-optimized tools as well as simple and easy to use technologies, they are very unlikely to go ahead and use them.

Research Strategy

To determine some of the key barriers in adopting healthcare technology among consumers/patients, we leveraged information and statistical data from articles and pertinent survey information. Although the research focused on healthcare technology such as digital payments and payments systems, we were not able to locate publicly available information that specifically focused on barriers to digital payments and systems. However, we were able to locate barriers among patients surrounding the adoption of healthcare technology such as patient platforms and mobile apps which can also be used to make payments in addition to other functions.
Part
08
of ten
Part
08

Healthcare Digital Payments

Benefits in security for healthcare institutions using payment technology and digital payments include less overall risk with easily traceable transactions, real time fraud alerts, tokenization, and greater security technologies. Concerns include data breaches through a variety of methods, and the greater security measures that are thus required to properly secure such data.

Pros

Lower Risks

  • Digital transactions provide a lower risk and are much more secure than traditional transactions as they are processed by secure gateways which are usually harder to manipulate and tamper with without advanced hacking. These transactions are also easily traceable with the details of payments stored in a specific database. Customers and merchants can avoid confusion and problems with easy access to all their payment information while tracking their transactions.
  • Automatic surveillance with fraud detection and data breaches in real time will all become available through AI (artificial intelligence). Utilizing artificial intelligence and machine learning technologies will provide healthcare organizations with up to date and real time risk identification and protection, giving healthcare organizations the ability to greatly reduce security risks without the increase in staff.
  • Real-time payment platforms are moving toward tokenization, a process where a value (a series of randomly-generated numbers known as a 'token') replaces the primary account number ensuring that all credit card and checking account details are never exposed, while giving a token that has no value to the hacker or cyberthief. Tokens be securely transmitted through the internet to process digital payments, while the process itself allows merchants to keep credit cards on file securely, allows single-click checkouts through near-field communications, and is a more cost effective way to manage and secure payment information.

Greater Security Potential

  • Advances in payment technology will be able to effectively stop a malicious intruder once they are already in the system. Progress and convergence across multiple areas of technology is making this detection possible, such as greater encryption and faster data processors, as well as two-factor authentication.
  • Advanced security technologies like advanced SPAM filtering, DNS filtering, (block access to known malware) and deep packet inspection in search of malware signatures, will all arrive alongside machine learning and greater data processing, preventing phishing and spear phishing attacks, both of which are major vectors for ransomware attacks to steal data.
  • Technology such as Blockchain for healthcare organizations will make the process of protecting patient data while remaining HIPAA compliant much simpler, as added encryption and lack of accessibility to everyone, along with trackable, transparent transactions, will greatly increase security protections. According to the source, once a medical record is signed or uploaded through the blockchain, the technology will provide indisputable proof of the action and the record will be unalterable, and this same application can be applied to clinical trials and medical bills.

Cons

Data Breaches

  • Today’s payments are no longer isolated processes but instead entire ecosystems playing a vital role in a broader picture of data privacy and fraud management. They form part of a IT security framework that must deal with the internet, social networks, mobile devices, and cloud services together.
  • No matter how advanced or comprehensive the cybersecurity of a healthcare organization, if hackers can gain access to legitimate credentials to login, for example through third party vendors, they can still steal data and compromise the network and organization through the back door. Only half of healthcare organizations are using multifactor authentication best practices and few are doing a legitimate job of identity proofing.
  • The majority of data and security breaches have come from login credentials that were compromised, such as usernames and passwords that have not changed. Stealing login credentials and identity factors can come from attacks on unencrypted data, through phishing attacks, and social engineering, among others.
  • A study published by the Ponemon Institute in 2016 found that in the two years prior, 89% of healthcare organizations and 60% of their third party contractors or Business Associates (BAs) have experienced some type of data breach. These data breaches have the potential to cost the organizations millions in liability and losses, and put patient information at serious risk.

More Avenues to Protect

  • Increasingly sophisticated methods are being used to trick customers into clicking on emails containing malware or to request fraudulent fund transfers. Ransomware has been the fastest growing digital threat to the healthcare industry over the last two years. Ransomware continues to put protected health information at risk in organizations of all sizes from small practices to large hospitals.
  • Apps for healthcare organizations that deal with electronic prescribing, patient portal, texting, and telehealth access, possibly store patient data and information including payment information, and are without a doubt targets for hackers.
  • Patient data and information travels through complex and varied networks involving multiple healthcare providers, bill payment processors, specialists, insurance payers, etc. All this confidential information must be tracked by healthcare organizations and monitored to ensure security during each transfer and phase, as many patient data breaches are caused by devices that are lost or stolen and contain Protected Health Information (PHI). With more and more of these devices being used with sensitive data stored, the risk of breaches increases greatly.
  • Nearly 30% of Healthcare IT executives feel that payment data is at the greatest risk in healthcare compared to other industries such as banking, airlines, and lodging. According to one report, from 2013-2018 there was about a 125% increase in cyber and hacking attacks against the healthcare industry in general.
Part
09
of ten
Part
09

Healthcare Technology Topics 2020

This report provides three of the most impactful topics of 2020, including using machine learning and AI for healthcare management, wearable medical technology, and facial recognition. Full details are provided below.

Machine Learning and AI Usage Harnesses Medical Data

  • In 2020, the amount of medical data in existence is expected to double every 73 days.
  • The estimated savings that can come from utilizing machine learning to analyze data and incorporate solutions in the medicine and pharma fields alone are estimated to be $100 billion.
  • As an example of AI usage, KenSci is an AI utilized for hospital risk prediction.
  • KenSci uses comparative data to analyze and predict clinical, financial, and operational risks that negatively impact healthcare costs.
  • KenSci is capable of anticipating what patients will be sick and when, enabling better budget and staffing management.
  • Forbes cautions that it will take time for AI and machine learning to play a major role in the healthcare field even as data becomes harvested on such a large scale this year.

Wearable Medical Technologies are Booming

  • Patients are increasingly expecting rapid-access, informed care, and so healthcare companies are increasingly investing in the development and usage of wearable medical technologies.
  • Patients and healthcare providers are able to jointly access live data about patients wearing these devices and receive notification about when urgent care is needed. These early notifications help mobilize and prepare staff for the patient's arrival.
  • The wearable medical device market is anticipated to reach $14 billion by 2024 with a CAGR of 18 percent.
  • Common wearable medical devices now include heart rate sensors, exercise trackers, sweat meters, and oximeters.
  • Data collected by wearable medical technology will enable more accurate insurance pricing as well as the potential for incentives for better behavior.
  • Usage of wearable medical technology could save the United States medical industry $7 billion a year.

Facial Recognition Improves Physician Efficiency and Patient Management

  • In 2017, doctors spent an average of 52 hours a year logging in to electronic health records software.
  • Facial recognition software is making login time faster, giving doctors quicker access to records and more time to focus on data entry and solutions.
  • Facial recognition software is learning how to read patient's faces for signs of pain, giving healthcare providers an early warning of when treatment will be required. This helps staffing management.
  • Facial recognition software is improving prescription security. As an example, AceAge Inc. released facial recognition software to accompany its at-home prescription dispensing machine. Through facial recognition, healthcare providers are able to monitor home prescription dispensing like never before.
  • Facial recognition apps are now being developed and utilized for patient identification at hospitals. This improves security and accuracy, reduces costs, and produces usable data.
Part
10
of ten
Part
10

Digital Healthcare Payments: Most and Least Popular Areas

Massachusetts and Wyoming have the highest rates of EHR, with Nevada and West Virginia ranking last. Utah, Iowa, and South Dakota are the most popular states regarding telehealth, and states such as California and Texas are among the top for public health surveillance programs. The lowest rates of HIE fall in the Midwest and the state with the lowest percentage of hospitals interoperating is New Mexico.

High Ranking States in Healthcare Technology

  • Massachusetts ranks first in overall data innovation rankings with EHR adoption rates of 93% in hospitals and 90% among physicians, with Wyoming coming in second.
  • According to statistics, the states with the highest adoption rates of EHRs are Wyoming at 79%, South Dakota at 77%, Utah at 75%, and North Dakota at 74%.
  • Regarding the implementation of telehealth, Utah, Iowa, and South Dakota have the highest overall rates, each averaging over 64%, while Northeastern states have the lowest rates of adoption.
  • Public health surveillance with immunization registries, electronic lab reporting, and cancer rate reporting programs are available in 16 states including California, Texas, Alaska, Pennsylvania, and New Jersey.
  • In 49 states there are at least 81% of hospitals using EHRs.
  • Alaska at 89%, Maryland at 86%, Rhode Island at 85%, and Delaware at 83% have the highest percentage of hospitals interoperating.
  • The top states with hospitals offering patients the ability to electronically view and download their health information are Alaska, Alabama, and Virginia.
  • New York, Nebraska, and Delaware are the most popular states for e-prescribing.

Low Ranking States in Healthcare Technology

  • New Jersey hospitals have a 75% adoption rate of EHRs but a lower rate of 62% among physicians, giving it a last-place ranking. Rhode Island, Louisiana, Hawaii, and Vermont also has among the lowest adoption rates.
  • Less than 40% of rural hospitals in Nevada and West Virginia have basic EHR technology.
  • In Maine, basic EHR adoption sits at 79%, but HIE capabilities are only available to 51% of the hospitals.
  • The lowest rates of HIE fall in the Midwest.
  • New Mexico has the lowest percentage of hospitals interoperating at 13%.
  • South Dakota, Arizona, and Louisiana were found to have the lowest percentage of hospitals that can exchange a summary of care records.
Sources
Sources

From Part 03
From Part 05
Quotes
  • "Developing and providing omni-channel strategies and digital payment innovation is necessary for the healthcare industry to progress, benefiting both patients and service providers while bringing healthcare payments in alignment with other industries."
Quotes
  • "Essentially, the Security Rule operationalizes the protections contained in the Privacy Rule by addressing the technical and nontechnical safeguards that covered entities must implement to secure ePHI."
From Part 09
Quotes
  • "As the world population continues to grow, and age, artificial intelligence, and machine learning offer new and better ways to identify disease, diagnose conditions, crowdsource and develop treatment plans, monitor health epidemics, create efficiencies in medical research and clinical trials, and make operations more efficient to handle the increased demands on the healthcare system. By 2020, medical data will double every 73 days. "
Quotes
  • "KenSci combines big data and artificial intelligence to predict clinical, financial and operational risk by taking data from existing sources to foretell everything from who might get sick to what's driving up a hospital’s healthcare costs."
Quotes
  • "We should expect these companies primarily to enable care models that make extensive use of artificial intelligence, machine learning and blockchain technologies — which are currently ill-supported by existing payment and business models. That said, don’t expect a big payoff right away; it will be years before these innovations impact care at scale, allowing big tech to develop material revenues in health care."
Quotes
  • "In the past, most patients were satisfied with undergoing a physical once a year, and only checking in with their doctors when something went wrong. But in the digital age, patients are focusing on prevention and maintenance, and demanding information about their health more frequently."
Quotes
  • "The Wearable Medical Devices Market is expected to exceed more than US$ 14 Billion by 2024 at a CAGR of 18% in the given forecast period."
Quotes
  • "With the adoption of technologies like FaceID, facial recognition technology will be an important player in privacy and security — intimate concerns of the healthcare field. It can be leveraged to drastically simplify the security requirements that make multi-factor authentication a time-consuming process for healthcare professionals — on average, doctors spend 52 hours a year just logging in to EHR systems. On the patient end, this same technology has the ability to detect emotional states of patients and anticipate needs based upon them, and the success of startups like Affectiva, the brainchild of MIT graduates, shows the tremendous promise of deep learning for these patient needs."
Quotes
  • "Thanks to deep learning and face analysis, it is already possible to: track a patient's use of medication more accurately detect genetic diseases such as DiGeorge syndrome with a success rate of 96.6% support pain management procedures."
Quotes
  • "One Canadian company believes it has a biometrics-based solution almost ready to bring to market. AceAge, Inc., a Canadian healthcare technology company, recently added facial recognition software to their Karie at-home medication dispensing appliance, according to Biometric Update. The Ver-ID facial recognition authentication application they chose was developed by Ontario-based Applied Recognition, Inc."
Quotes
  • "The purpose of this study was to develop a mobile health app for patient identification to overcome the limitations of current patient identification alternatives. The development of this app is expected to provide an easy-to-use alternative method for patient identification."