How BI is Lowering Healthcare Costs

Scott Mace, for HealthLeaders Media , February 11, 2014

"It's not like we're looking at quality data in isolation of cost data, [or] in isolation of patient satisfaction data," Kenagy says. "That conversation at HIMSS kind of snowballed into this effort where Legacy is not a development partner, but certainly bridging" the efforts of both vendors, he adds.

As a HIMSS EMR Adoption Model Stage 7 site, Legacy is an advanced user of electronic health record software. The system chose not to adopt earlier business intelligence solutions, such as Oracle or Cognos, but instead waited for more cost-effective solutions. "We're really working with our vendors to develop the tools that we need, instead of bolting on other products," Kenagy says.

The big huddle last month included a data architect Legacy had hired from Intel and other members of Legacy's BI team, as well as more than a dozen representatives combined from both Epic and Strata. Over the course of two days, input came from more than 100 people inside Legacy, including service lines, pharmacy, care transformation, and Legacy's CEO, George Brown MD.

"We were actually able to demonstrate some of the tools, because we did that in our test environment," Kenagy says. Feeding in the various forms of cost—fixed, variable, labor, supplies—from Strata's StrataJazz technology into Epic's Cogito, meeting participants were able to quantify value as an equation with clinical outcomes as the numerator and cost as the denominator.

"It was wonderful," Kenagy says.

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1 comments on "How BI is Lowering Healthcare Costs"

Frank Poggio (2/11/2014 at 9:04 PM)
Interesting piece. As a former CFO I always thought we would get to this and beyond. It's been decades in the making, and not too soon. Another firm that offers some nice tools to accomplish similar results is HCI based in Illinois. Info at




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