The Wiley and SAS Business Series presents books that help senior-level managers with their critical management decisions.
Titles in the Wiley and SAS Business Series include:
Analytics: The Agile Way by Phil Simon
The Analytic Hospitality Executive by Kelly A. McGuire
The Analytics Lifecycle Toolkit: A Practical Guide for an Effective Analytics Capability by Gregory S. Nelson
Analytics in a Big Data World: The Essential Guide to Data Science and Its Applications by Bart Baesens
A Practical Guide to Analytics for Governments: Using Big Data for Good by Marie Lowman
Bank Fraud: Using Technology to Combat Losses by Revathi Subramanian
Big Data Analytics: Turning Big Data into Big Money by Frank Ohlhorst
Big Data, Big Innovation: Enabling Competitive Differentiation through Business Analytics by Evan Stubbs
Business Analytics for Customer Intelligence by Gert Laursen
Business Intelligence Applied: Implementing an Effective Information and Communications Technology Infrastructure by Michael Gendron
Business Intelligence and the Cloud: Strategic Implementation Guide by Michael S. Gendron
Business Transformation: A Roadmap for Maximizing Organizational Insights by Aiman Zeid
The Cloud-Based Demand-Driven Supply Chain by Vinit Sharma
Connecting Organizational Silos: Taking Knowledge Flow Management to the Next Level with Social Media by Frank Leistner
Data-Driven Healthcare: How Analytics and BI Are Transforming the Industry by Laura Madsen
Delivering Business Analytics: Practical Guidelines for Best Practice by Evan Stubbs
Demand-Driven Forecasting: A Structured Approach to Forecasting (Second Edition) by Charles Chase
Demand-Driven Inventory Optimization and Replenishment: Creating a More Efficient Supply Chain by Robert A. Davis
Developing Human Capital: Using Analytics to Plan and Optimize your Learning and Development Investments by Gene Pease, Barbara Beresford, and Lew Walker
The Executive's Guide to Enterprise Social Media Strategy: How Social Networks Are Radically Transforming Your Business by David Thomas and Mike Barlow
Economic and Business Forecasting: Analyzing and Interpreting Econometric Results by John Silvia, Azhar Iqbal, Kaylyn Swankoski, Sarah Watt, and Sam Bullard
Economic Modeling in the Post Great Recession Era: Incomplete Data, Imperfect Markets by John Silvia, Azhar Iqbal, and Sarah Watt House
Enhance Oil & Gas Exploration with Data-Driven Geophysical and Petrophysical Models by Keith Holdaway and Duncan Irving
Foreign Currency Financial Reporting from Euros to Yen to Yuan: A Guide to Fundamental Concepts and Practical Applications by Robert Rowan
Harness Oil and Gas Big Data with Analytics: Optimize Exploration and Production with Data Driven Models by Keith Holdaway
Health Analytics: Gaining the Insights to Transform Health Care by Jason Burke
Heuristics in Analytics: A Practical Perspective of What Influences Our Analytical World by Carlos Andre Reis Pinheiro and Fiona McNeill
Human Capital Analytics: How to Harness the Potential of Your Organization's Greatest Asset by Gene Pease, Boyce Byerly, and Jac Fitz-enz
Implement, Improve and Expand Your Statewide Longitudinal Data System: Creating a Culture of Data in Education by Jamie McQuiggan and Armistead Sapp
Intelligent Credit Scoring: Building and Implementing Better Credit Risk Scorecards (Second Edition) by Naeem Siddiqi
JMP Connections: The Art of Utilizing Connections in Your Data by John Wubbel
Killer Analytics: Top 20 Metrics Missing from Your Balance Sheet by Mark Brown
Machine Learning for Marketers: Hold the Math by Jim Sterne
On-Camera Coach: Tools and Techniques for Business Professionals in a Video-Driven World by Karin Reed
Predictive Analytics for Human Resources by Jac Fitz-enz and John Mattox II
Predictive Business Analytics: Forward-Looking Capabilities to Improve Business Performance by Lawrence Maisel and Gary Cokins
Profit-Driven Business Analytics: A Practitioner's Guide to Transforming Big Data into Added Value by Wouter Verbeke, Cristian Bravo, and Bart Baesens
Profit from Your Forecasting Software: A Best Practice Guide for Sales Forecasters by Paul Goodwin
Project Finance for Business Development by John E. Triantis
Retail Analytics: The Secret Weapon by Emmett Cox
Social Network Analysis in Telecommunications by Carlos Andre Reis Pinheiro
Statistical Thinking: Improving Business Performance (Second Edition) by Roger W. Hoerl and Ronald D. Snee
Strategies in Biomedical Data Science: Driving Force for Innovation by Jay Etchings
Style & Statistic: The Art of Retail Analytics by Brittany Bullard
Taming the Big Data Tidal Wave: Finding Opportunities in Huge Data Streams with Advanced Analytics by Bill Franks
Too Big to Ignore: The Business Case for Big Data by Phil Simon
The Value of Business Analytics: Identifying the Path to Profitability by Evan Stubbs
The Visual Organization: Data Visualization, Big Data, and the Quest for Better Decisions by Phil Simon
Using Big Data Analytics: Turning Big Data into Big Money by Jared Dean
Win with Advanced Business Analytics: Creating Business Value from Your Data by Jean Paul Isson and Jesse Harriott
For more information on any of the above titles, please visit www.wiley.com.
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Library of Congress Cataloging-in-Publication Data:
Names: Lewis, Michael N., author. | Nguyen, Tho H., 1972- author.
Title: Transforming Healthcare Analytics: the quest for healthy intelligence / Michael N. Lewis, Tho H. Nguyen.
Description: Hoboken, New Jersey : Wiley, [2020] | Series: Wiley & SAS business series | Includes index.
Identifiers: LCCN 2019053586 (print) | LCCN 2019053587 (ebook) | ISBN 9781119613541 (hardback) | ISBN 9781119613572 (adobe pdf) | ISBN 9781119613589 (epub)
Subjects: LCSH: Medical informatics—Technological innovation. | Medicine—Data processing.
Classification: LCC R858 .L493 2020 (print) | LCC R858 (ebook) | DDC 610.285—dc23
LC record available at https://lccn.loc.gov/2019053586LC
ebook record available at https://lccn.loc.gov/2019053587
COVER DESIGN: WILEY
COVER IMAGE: © MIRAGEC / GETTY IMAGES
This book is dedicated to my wife, Shelia, whose love, support and inspiration gave me the courage and strength to just write the damn book already! To my kids, Nicholas, Nevin, Natalie, Emily, Charlie, and Annie, who taught me that, through perseverance and determination, anything can be accomplished, you only have to try. To my dad, who taught me the important traits of being a successful leader and provided me invaluable career advice no matter how insignificant it seemed at the time. And finally, to my mom, who recently passed away from cancer. She was always there to lend a supportive ear and encouraged me to be the best person I could.
– Michael Lewis
This book is dedicated to my wife and kids who provided their unconditional love and unrelenting support with all the late nights, frantic weekends, and even working vacations to write this book. My family has been my greatest inspiration, giving me the flexibility and focus needed to complete this book in a timely manner. To all refugees around the world, hard work and persistence will open many opportunities.
– Tho H. Nguyen
Michael Lewis is Senior Director of Enterprise Analytic at Cleveland Clinic. Michael graduated from Cleveland State University in 1987 with a Bachelor of Business Administration with a concentration in Quantitative Business Analysis. He went on to receive his Master of Business Administration from Baldwin-Wallace College in 1991. He also earned the Health Insurance Associate Designation from America's Health Insurance Plans.
Michael was also a professor with Tiffin University where he taught graduate and undergraduate-level classes in Analytical Mathematics, Management Analysis and Research, Management Information Systems, and Information and Decision Support Systems.
He has spent his entire career of 30+ years in healthcare developing world-class analytics programs that promote a culture of fact-based decision-making and measurable continuous improvement. He has held the role of Senior Director of Enterprise Analytics since December 2015. He leads an industry-leading, cross-functional team to promote the design, implementation, and monitoring of innovative advanced analytical disciplines and solutions through the coordinated and systematic use of clinical and encounter-based data, related business insights, and multidisciplinary skill set for planning, management, measurement, and learning. Previously, he joined Cleveland Clinic in June 2012 as the Director of Contract Economics. He developed and implemented strategic reimbursement models, self-help analytics, and discovery dashboards to meet Enterprise metrics on US$8.0 billion+ of revenue.
Before joining Cleveland Clinic, Mike started his career in healthcare in 1988 working for Medical Mutual of Ohio (MMO) (formerly known as Blue Cross Blue Shield of Ohio). During his 24+ years at MMO, he held a variety of positions. As an Actuarial Analyst and Senior Financial Analyst in Provider Reimbursement and Data Analysis, he developed and implemented analytical models that enhanced the company margins by 3 percent. As a Regional Network Manager, he architected the building of proprietary hospital networks in Indiana and Northeast Georgia. He built analytical models that help identify reimbursement unit costs opportunities that were contractually implemented network-wide.
In his spare time, Mike is an avid sports fan and options investor. He enjoys spending time with his wife, traveling, reading, and listening to podcasts. He is a foodie and craft beer enthusiast. Mike enjoys exploring exotic foods with Tho any time they are together.
Tho H. Nguyen came to the United States in 1980 as a refugee from Vietnam with his parents, five sisters, and one brother. As the youngest in the family, Tho has tremendous admiration for his parents, who sacrificed everything to come to America. Sponsored by the St. Francis Episcopal Church in Greensboro, North Carolina, Tho had enormous guidance and support from his American family who taught him English and acclimated him and his family to an opportunistic and promising life in America.
Tho holds a Bachelor of Science in Computer Engineering from North Carolina State University and an MBA degree in International Business from the University of Bristol, England. During his MBA studies, He attended L'École Nationale des Ponts et Chaussées (ENPC) in Paris, France – University of Hong Kong, Hong Kong – and Berkeley University, California. Tho proudly represented the Rotary Club as an Ambassadorial Scholar, which provided him a global perspective and a deep appreciation for the world of kindness.
With more than 20 years of experience, Tho has various leadership roles in data management and analytics. Integrating his technical and business background, Tho has extensive experience in alliance management, global marketing, and business/strategy management. Tho is an author, an active presenter/keynote speaker at various conferences, and a technology enthusiast.
In his spare time, He does volunteer work for various non-profit organizations and has held leadership positions for the Vietnamese-American Association of Raleigh, NC and Asian Focus NC. He has donated all of his proceeds from his first book to charities locally and globally, and gave two scholarships to pay it forward. Tho enjoys spending time with his family, traveling, running, and playing tennis. He is a foodie who is very adventurous, tasting different and exotic foods around the world.
You can connect with him via LinkedIn https://www.linkedin.com/in/thohnguyen/.
First, I would like to recognize my co-author, Tho H. Nguyen, for his understanding, guidance, and support during this new chapter in my life. Tho is a leading expert in how technology can play a role in your analytics strategy. Tho's first book, Leaders and Innovators, is a must read and inspired me to share my experiences. Second, I would like to recognize you, the reader of this book. By showing interest in learning how to bring to life an analytics strategy, your quest for health intelligence will be a positive disruptor for the healthcare industry.
There are many people at Cleveland Clinic, who started this journey before I arrived, who believed in me and allowed me to help shape the analytics strategy of the future. First is Chris Donovan, whose leadership, mentorship, and relentless pursuit of perfection gives me the drive to put forth world-class analytics for a world-class organization. Second is Andrew Proctor and Eric Hixson. As business partners in Enterprise Analytics, it is their clinic and operational knowledge and expertise that allows the converging work to be more meaningful to the organization. An extra thanks to Eric for always taking the time to debate the merits of any and all methods and models considered. To my analytics team, especially, Don McLellan, Cathy Merriman, Joe Dorocak, Michael Bromley, John Urwin, Colleen Houlahan, Dan Rymer, and James Allen, and those not named, for your tireless attention to details and putting up with my crazy ideas. I know we are making a difference and it starts with your dedication to our patients and organization.
I cannot thank everyone enough who tirelessly spent long nights reviewing and providing input, chapter by chapter, especially Lauree Shepard, Tho Nguyen, and Michael Bromley. Trying to bring to life real-world learnings, following my logic, opinions, and trying to understand how you put an analytics strategy into words can be maddening, but you did it with kindness, compassion, and thoughtfulness. I owe you gratitude beyond expression for your tremendous dedication to making sure the message is easily consumable and usable to the readers.
A special salute to all healthcare professionals whom I have interacted personally with and those I have not. Your dedication to caring for the sick and trying to cure life-changing medical events continues to ignite my passion to solve healthcare challenges as they arise. Finally, to my wife and children, thank you for brightening my life every day and allowing me to share yours.
– Michael N. Lewis
First, I would like to recognize my co-author, Michael N. Lewis, for his passion and patience writing this book with me. Mike brings the deep knowledge and insightful experience to make this book relatable. Second, I would like to recognize you, the reader of this book. Thank you for your interest to learn and be the agent of change in the healthcare industry. I am contributing the book proceeds to worthy charities that focus on technology and science to improve the world, from fighting hunger to advocating education to innovating social change.
There are many people who deserve heartfelt credit for assisting me in writing this book. This book would have not happened without the ultimate support and guidance from my esteemed colleagues and devoted customers. A sincere appreciation to my colleagues who encouraged me to share my personal experience and helped me to stay focused on what's relevant.
I owe a huge amount of gratitude to the people who reviewed and provided input word by word, chapter by chapter, specifically Lauree Shepard, Clark Bradley, Paul Segal, and Michael Lewis. Reading pages of healthcare jargon, trying to follow my thoughts, and translating my words in draft form can be an overwhelming challenge but you did it with swiftness and smiles. Thank you for the fantastic input that helped me to fine-tune the content for the readers.
A sincere appreciation goes to James Taylor, all healthcare professionals, IT specialists, and business professionals whom I have interacted with over the years. You have welcomed me, helped me to learn, allowed me to contribute, and provided real intelligence for this book. Finally, to all my family (the Nguyen and Dang crew), the St. Francis Episcopalian sponsors, the Rotary Club (the Jones Family, the Veale Family) – all of whom have contributed to my success – I would not be where I am today without them. To my wife and children, thank you for being the love of my life and bringing light and purpose to my day.
– Tho H. Nguyen
The views expressed in this book are those of the individual authors representing their own personal views and not necessarily the position of either of their employers.
by James Taylor 1
I have been working with advanced analytics for nearly 20 years. The market has matured dramatically to the point where analytics, machine learning, and AI are now common topics of conversation in every industry. Once, analytic models were handcrafted for a few high-value scenarios. Now, companies are automating the creation of advanced analytics and using them to solve a wide range of problems. The time to develop and deploy advanced analytics has gone from months to seconds, even as the amount of data being analyzed has exploded. Every industry is focused on being more data-driven and healthcare is no exception.
Tho and I met many years ago through our work as faculty members of the International Institute for Analytics. We have a shared interest in the technologies and approaches of analytics and in how organizations can truly take advantage of their data.
Healthcare is an industry that impacts everyone throughout their life. New drugs, new treatments, and new understanding drives continual and rapid innovation. Yet even as healthcare technology and treatments get more effective, populations in many countries are struggling with older populations and an epidemic of obesity. Drug resistance is an increasing problem and costs continue to rise. The healthcare industry needs to find ways to use data to tackle these and many other challenges.
Healthcare organizations have a particular challenge when it comes to analytics. Healthcare data is uniquely complex and uniquely sensitive. It must capture the state of a complex, living person. It is only imperfectly digitized and much of it is image related, time series related, or both – hard classes of data to manage and analyze. It is also intensely personal, so its use is regulated and controlled to protect people's privacy and prevent health-related discrimination. Taking advantage of this data to reduce costs and improve outcomes is both essential and complex.
Over the years I have worked with hundreds of organizations that are using analytics to improve their decision-making. Like Tho and Mike, I have come to see that people and process are as essential as technology – perhaps even more so. Building cross-functional teams, engaging a broad set of skills, and having a process that focuses on decision-making are all necessary if analytic technology is to be applied effectively.
Take one healthcare provider I was working with recently. A technical team had developed some potentially useful analytic models. But working alone they could get no traction. We engaged clinical and operations staff in a discussion of the current decision-making. We applied design thinking and decision modeling to see how that decision might be improved with the analytic. With this shared understanding the technical team could see what a minimum viable product would require and could execute a series of Agile sprints to deliver it. People, process, and (analytic) technology.
With this book, Tho and Mike hope to show healthcare professionals how to transform their industry with data and analytics. Right from the start, they emphasize the importance of people, process, and technology – not just the coolest, newest technology. Real-world stories of healthcare problems addressed by insight-driven decisions show healthcare professionals what's possible and what technology exists. The stories help bring to life how analytics might create a more effective future state in healthcare.
The core chapters on People, Process, and Technology are full of great advice. There is a discussion of the skills needed, especially in analysis and business understanding. The need to invest in a wide range of roles (not just hire unicorns) and the importance of changes in sponsorship culture are emphasized. Three critical elements of process are discussed next. Design Thinking – something we find very effective in defining how analytics can improve decision-making – Lean and Agile. Our experience is that the hardest problem is defining the business problem so analytics can be applied effectively. As the authors point out, success therefore requires process change and the creation of a repeatable, sustainable playbook. The technology chapter gives a succinct but complete overview of available technology. All of this is pulled together into a framework for integrating people, process, and technology to drive culture change and move up the analytic maturity curve. The authors talk about the importance of focusing on data as an asset, bringing together cross-functional teams, providing clear leadership, and investing in growing analytic talent. All of this is illustrated with real-world case examples. A final chapter lays out what's coming and how will it change healthcare, especially the growth in sensors and devices connected through the Internet of Things, the growth of the cloud, and the adoption of artificial intelligence.
If you are a healthcare professional concerned about applying data and analytics to improve your organization, this book will give you valuable insights. The advice and framework will help you organize, recruit, train, and develop the data analytics capability you need.
Healthcare needs to become more data-driven, more analytic. This book will show you how.