The payer care management solution market is undergoing a transformation, reflecting the industry’s drive toward value-based care, according to a new survey from the Framingham, Mass.-based IDC Health Insights. Providers would be wise take note of this development, as closer integration with health plans is expected in the new era of accountable care, which will rely heavily on core competencies more likely to have been mastered by payer organizations than by providers: population health and analytics.
In the IDC MarketScape report, “U.S. Care Management Solutions for Healthcare Payers 2012 Vendor Assessment—A Market in Transition to Health Engagement,” Janice Young, IDC Health Insights program director, Payer IT Services, says the most salient finding is that care management applications and solutions are in a moment of extraordinary transformation, reflecting the environment of healthcare reform, which requires large group plans to spend at least 85 percent of premium dollars on health care and quality improvement, while small group plans must spend at least 80 percent.
With newly architected solutions within the past 12–24 months, there will be much opportunity for payers to manage newly diagnosed patients, to identify their chronic patients early on, and recognize points of intervention, she adds. Another key will be to understand how to develop trust with patients to promote better health outcomes through consumer engagement tools, either through their physician or by other methods. “When a member is in a provider office, does the provider know what he needs to know about the consumer to treat them well?” asks Young. “In many cases, for better or for worse, the health plan has information about the consumer that could help manage that better. How do we structure that initiative for care and health and wellness?”
Providers Should Take Notice
Health IT leaders would be wise to keep an eye on technologies in the payer space, as many population health solutions are being created for payers that can be leveraged in the provider space as well. Linking these technologies in the two markets could help lay the foundation for the new risk-based structures required for accountable care.
“It’s worth providers really taking a close look at what’s going on in this marketplace, because most of these vendors are reaching to integrate with EHR and HIE initiatives that are being heavily invested in on the provider side,” says Young.
There are multiple opportunities of collaboration for providers and payers around quality-based programs or around specific types of health outcomes. “Many of the providers who are interested in ACOs models don’t necessarily have a lot of experience in population management and in the types of analytics and process management that health plans are very accustomed to,” she adds. “In some instances health plans and these technology vendors identified a role to provide these services and these technologies to ACOs to give them the platforms to manage these populations.”
Solutions are Changing
The need for better cost management, and better payer, provider, and consumer integration, amid the changing reimbursement environment are being reflected in the vendors’ emerging products. “The applications now are really creating a holistic 360-degree approach from a couple of different approaches, which is vastly beyond what the original and historical applications,” says Young.
Payers are ramping up their capabilities to examine the continuum of care including legacy care, case, and disease management initiatives, as well as to prevent hospitalizations and readmissions using communications management, integration, portal strategies, and real-time or near-real-time communications. Another focus has been an integration of analytics for both population identification and stratification, and outcomes analysis, using workflow technology to fire alerts against care gaps or best-practice health and care models.
“Most [vendors] are in the process, or have introduced capabilities or integration strategies or portal strategies to make processes of how the health plan is touching the individual consumer available to the consumer and the provider, and to a certain extent enable interactivity through those technologies, and it could be integration with an EHR, HIE, or direct information to a provider or consumer,” says Young.
Specific IT Requirements
Young says the most significant investment vendors will be making will be in beefing up portals for consumers and providers, and continuing to invest in partnerships with other analytics vendors.