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Majority of Healthcare Executives See Population Health Investment Recouped within Four Years

January 15, 2015
by John DeGaspari
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Population health was cited as one of the biggest concerns of healthcare executives, according to a KPMG survey

More than half of healthcare managers surveyed expect to recoup their investments in population health management programs within three to four years, according to a survey by KPMG LLP in New York. The online survey of 296 respondents took place during a webcast in November titled, “Enabling New Payment and Service Delivery Models through Technology.”

According to the survey, 20 percent believe that investments in healthcare information technology and data and analytics tools will pay off in one to two years. Another 36 percent said that the payback period for these investments could take up to three to four years, showing a majority expect to recoup their costs in that timeframe. The survey showed that 29 percent see the investment in population health paying off in five or more years; 14 percent do not expect to recoup their investment at all.

The growth in the number of accountable care models, value-based contracts and other reimbursement models is driving much of the emphasis toward population health, according to Joe Kuehn, partner in KPMG’s healthcare advisory practice, who co-hosted the webinar.

More than a third of the survey’s respondents (36 percent) said the biggest clinical benefit derived from population health management will come from preventative care. developing evidence-based clinical protocols to improve the efficiency of care was the second biggest response (23 percent), followed by managing chronic diseases (21 percent).

Nearly a quarter (24 percent) of the respondents see their own population health management capabilities as “mature,” and 38 percent described their capabilities as in the “elementary stages.” nearly 40 percent of those surveyed see their population health capabilities as “nonexistent (15 percent) or in their infancy (23 percent).

“Providers and other participants in the care delivery system need the real time data and analytic tools to not only manage and improve the quality of care provided, but also the ability to measure costs to operate efficiently,” said Kuehn in a prepared statement.




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