HIT Perspectives
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HIT Perspectives – June 2024
Payer Interoperability - The People Part of It
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By Brian Dwyer, Business Strategy Practice Lead | Kendra Obrist, Senior Consultant, Payer Strategist |
Quick Summary
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Interoperability Challenges for Payers: Payers need to align technology, people, processes, and culture for effective data sharing and improved patient care.
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API Adoption and Regulatory Compliance: APIs enhance data exchange, security, and efficiency. Compliance with regulations like CMS's rule is essential.
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Competitive Advantages: Interoperability boosts efficiency, reduces costs, improves decision-making, personalizes care, and integrates social determinants of health (SDOH).
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Human Factors in Transformation: Success requires trust, executive buy-in, and overcoming inertia through leadership and partnerships.
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Upskilling and Organizational Alignment: Continuous education, strategic hiring, and organizational alignment are crucial for health IT innovations.
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Participation in Health IT Standards: Engaging in standards organizations (e.g., HL7, NCPDP) shapes interoperability and aligns with industry needs.
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Staying Agile and Future-Focused: Adapt to new technologies and regulations to maintain a connected health ecosystem and meet stakeholder needs.
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Value of Objective Guidance: External evaluations and strategic advice from POCP identify inefficiencies, prioritize technology, and facilitate change.
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POCP's Role in Facilitating Change: POCP offers assessments, guidance, cultural alignment, and insights to help organizations achieve interoperability.
In today's healthcare ecosystem, payers face a unique set of challenges when it comes to achieving seamless data interoperability. The role of payers is critical as they interact with multiple stakeholders — including providers, members, and regulatory bodies — making the stakes of effective interoperability especially high. For payers, the journey involves not only embracing new technologies like application programming interfaces (APIs) but also navigating complex relationships that could be impacted by poorly implemented changes.
The imperative for payers extends beyond technology adoption and regulatory compliance. It requires strategic alignment of people, processes, and organizational culture to ensure interoperability efforts enhance patient care and streamline operations without disrupting relationships with providers and members. Effective interoperability means developing solutions that address the myriad interactions and data exchanges in daily operations, aiming to improve outcomes while maintaining trust across the healthcare spectrum.
Many payers hastily adopt technology solutions driven by regulatory mandates and limited budgets, often exceeding their competencies. Prudent payers, however, take time to analyze their gaps, considering both current and upcoming regulations. They prioritize solutions based on ROI and strategic value rather than merely meeting regulatory requirements. Large vendors often drag out the process with inexperienced managers and overstretched executives. The wisest payer’s partner with boutique firms where experienced executives offers deep expertise and guide smarter investments.
The Rise of APIs and Regulatory Drivers
APIs are transforming health data exchange, streamlining integration across diverse information technology (IT) systems. Regulatory frameworks mandate standardized APIs for uniform data sharing, ensuring a cohesive healthcare ecosystem.
- Adoption of APIs as conduits for data exchange: APIs facilitate integration of diverse health IT systems.
- Enhanced security and efficiency in data sharing: This enables secure, efficient sharing of critical health information, eliminating silos and enhancing continuity of care.
- Compliance with regulatory measures: Regulatory measures like the Centers for Medicare and Medicaid Services’ Interoperability and Patient Access final rule mandate use of standardized APIs to allow uniform data access and sharing across the healthcare ecosystem.
Competitive Advantages of Interoperability
Interoperability extends beyond compliance, offering key competitive advantages. It enables automated workflows and real-time data access while enhancing patient care through integrated health information.
- Operational efficiencies and cost reductions: Enhanced efficiency and reduced costs through automated workflows and real-time data access.
- Informed decision making and personalized care: Ensure providers have complete patient histories at their fingertips for informed decision making.
- Integration of social determinants of health (SDOH): Integration of SDOH data enables more holistic, patient-centric care.
The Human Side of Transformation
Interoperability's success depends significantly on addressing the human factors involved. Building trust and securing executive buy-in are essential for aligning goals and driving transformation across the organization.
- Building Trust with Providers: Transition to collaborative, transparent partnerships between providers and payers.
- Finding the Right Partners: Emphasize technological and cultural synergy, exemplified by partnerships like Regence-MultiCare.
- Securing Executive Buy-In: Strong leadership commitment aligns priorities and secures resources.
- Overcoming Operational Inertia: Proactive change management drives continuous improvement.
Upskilling and Organizational Alignment
Upskilling staff and aligning organizational structures are critical for adapting to health IT innovations. Continuous education and strategic hiring support the effective use of new technologies and regulatory frameworks.
- Education and skills development: Focus on upskilling existing staff and recruiting new talent skilled in Fast Healthcare Interoperability Resources (FHIR), APIs and modern health IT.
- Cross-functional alignment is essential: Foster open communication, share visions and enhance collaborative decision making.
The Importance of Health IT Standards Participation
As the industry moves toward increased interoperability, active participation in health IT standards development organizations becomes increasingly important. These organizations, such as Health Level Seven International , National Council for Prescription Drug Programs , X12 and Workgroup for Electronic Data Interchange, play a crucial role in shaping the standards and frameworks that govern data exchange and interoperability.
By engaging these organizations, healthcare entities can contribute their expertise and perspectives, ensuring the standards and guidelines reflect the real-world challenges and requirements of the industry. This participation helps shape the future of interoperability and provides valuable educational opportunities for organizations and their staff.
Through active involvement in workgroups, conferences and educational sessions, healthcare professionals can stay up-to-date with the latest developments in interoperability standards and best practices. This knowledge can then be applied within their organizations, enabling them to make informed decisions about technology adoption, vendor selection and implementation strategies.
Moreover, participation in standards development organizations fosters collaboration and knowledge sharing among industry stakeholders. By working alongside peers from various healthcare sectors, organizations can gain insights into different perspectives and approaches, facilitating the development of comprehensive and inclusive solutions.
Staying Agile and Future Focused
As the healthcare industry continues to evolve, the journey toward comprehensive interoperability is ongoing. Organizations must stay agile, continuously adapting to new technological advancements and regulatory requirements. The goal is to create a connected health ecosystem where technology enhances the ability of healthcare professionals to deliver care, thus making healthcare more efficient, accessible, and effective for all. This means that payers can’t afford to implement it and forget it. They must continue to monitor and proactively respond to the changing needs of their key stakeholders.
The Value of Experienced Guidance
In the journey toward interoperability, organizations can greatly benefit from stepping outside their internal narratives and seeking objective third-party analysis. This external perspective helps challenge entrenched "institutional truths" and outdated statistics, fostering necessary disruptions akin to those that propel entire industries forward. Such disruptions encourage not only technological advancements but also essential shifts in processes and organizational culture, keeping institutions competitive in a rapidly evolving landscape.
Point-of-Care Partners' Role in Facilitating Change
- Objective Assessments: POCP provides critical third-party evaluations that identify outdated practices, reveal hidden inefficiencies and spotlight areas for improvement, helping organizations break free from counterproductive cycles.
- Strategic Guidance: Expert advice on technology prioritization, cultivation of strategic partnerships and alignment of organizational structures ensures that transformations are both impactful and sustainable.
- Cultural and Process Shifts: Through tailored communication strategies and effective storytelling, POCP facilitates deeper cultural shifts that align with technological upgrades, enhancing overall adaptability of the organization.
- Utilization of Industry Insights: Leveraging extensive knowledge of best practices, emerging trends and regulatory environments, POCP positions organizations to navigate the future confidently.
To be successful and reap the maximum benefits of achieving interoperability, an organization must integrate people, processes and culture in the overarching strategy and implementation. While modern IT infrastructures provide the necessary backbone, the broader transformation required for true interoperability demands unfiltered, objective assessments of the current state and a comprehensive alignment across all organizational facets. By embracing an approach that values external insights and holistic change, healthcare organizations can unlock the full potential of interoperability, resulting in enhanced patient care, improved operational efficiencies and a robust, collaborative healthcare ecosystem. If your organization would like a brief, initial consult, reach out to us at brian.dwyer@pocp.com and kendra.obrist@pocp.com .