Analytics & Decision Making

Context
 Session Goals

Given that health informatics (HI), analytics & decision

making are interdisciplinary:
• Understand generic (non industry specific) definitions.
• Consider HI, analytics & decision making implications of:
– The various types of health industry organizations & their
characteristics.
– The ways in which the health industry is similar to or
different from other industries, making their analytics and
decision making common or different.

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 Course Model (DADA)

ACTION • Axiom: Action – the act of ‘doing’ or

of ‘believing’ - is the intended result
of decision making.
DECISION
• Ideally,
– Decisions should be based on
INSIGHT &
UNDERSTANDING
understanding of the decision space.
– The insight that leads to
understanding should be based on
ANALYSIS
analysis.
– The grist for the analytical mill should
DATA be data.
© Alan F. Dowling, PhD 1981-2017
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 Informatics (Generic Definition)

“Informatics, a broad academic field encompassing human-

computer interaction, information science, information
technology, algorithms, areas of mathematics (especially
mathematical logic and category theory), and social
sciences…” “that focuses on the study of information
processing, systems integration and human interactions with
machine and data.”
Source: Wikipedia (8/2012, 8/2017)

How does this definition play out in the various and

diverse components of the health care system?

© Alan F. Dowling, PhD 2012-2017

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 Analytics (Generic Definition)

Data analytics (DA) is the science of examining raw data

with the purpose of drawing conclusions about that
information. Data analytics is used in many industries to
allow companies and organization to make better business
decisions and in the sciences to verify or disprove existing
models or theories. Data analytics is distinguished from data
mining by the scope, purpose and focus of the analysis…

Source: TechTarget 2015

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 Analytics (Generic Definition)

Data miners sort through huge data sets using sophisticated

software to identify undiscovered patterns and establish
hidden relationships. Data analytics focuses on inference,
the process of deriving a conclusion based solely on what is
already known by the researcher.

Source: TechTarget 2015

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 Decision Making (Generic Definition)

Decision-making can be regarded as the cognitive process

resulting in the selection of a belief or a course of action
among several alternative possibilities.
A decision-making process ultimately produces a ‘final’
choice that may or may not prompt action. Decision-making
is the study of identifying and choosing alternatives based on
the values and preferences of the decision maker.

Source: various

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 The ‘uniqueness’ debate…

But, we’re interested in analytics & decisions as they

pertains to the health industry… So, what’s the context?
And, is there a context that is any way different from any
other industry?

Where do you stand on the following assertions:

1. The health industry just like any other industry?

2. The health industry is unique?

© Alan F. Dowling, PhD 2012-2017
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 U.S. Health ‘System’ Components

Private NFP Private FP Government

Bon Secour
Care Delivery Tenet DoD
Health Sys.

Research MIT Whitaker Genentech NIH

CWRU
Education E&Y SUNY
Med School

Payers MIT Whitaker

UHC Genentech
Cigna HHS/CMS
NIH

Suppliers MIT Whitaker

ARC Genentech
J&J NIH
VA

Regulators/ Det Norske

MITJCAHO
Whitaker Genentech FDA
NIH
Accred. Veritas
© Alan F. Dowling, PhD 2012-2017
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 Health Industry Components

The Health Care industry encompasses all participants, from suppliers to hospitals
to insurance companies, to patients and finally regulatory organizations. This
common view of the industry recognizes the scope, interconnections and
interoperation among the segments.

© Alan F. Dowling, PhD 1981-2017

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 Health Industry Organizations
• Ambulatory Care Centers
• Urgent Care Centers
• Trauma Centers
• Acute Care Hospitals
• Home Health Services
• Rehabilitation Facilities
• Mental Health Facilities
• Long Term Care Facilities
• Hospices
• Corporate Care Facilities
• IDSs, IDFSs, MCOs
• Accountable Care
Organizations
• Health Consultants
• Medical Group Practices
• Blood Banks
• Reference Laboratories
• Poison Control Centers
• Public Health Facilities
• Insurance & Payment Organizations
• Hospital Supply Businesses GPO
• Pharmaceutical Manufacturers
• Accreditation Agencies
• Health Planning Agencies
• Regulatory Agencies
• OWA’s
© Alan F. Dowling, PhD 2000-2017
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 Key Differences:
Health Care vs. Other Industries

• The health care industry is a combination of private and

government markets.
• The health care industry is a combination of profit and not-for-
profit markets.
• Health care production centers are located throughout the
country.
• Care production is determined and controlled by knowledge
workers (i.e., physicians) who are predominately independent
of the production agencies (e.g., hospitals).

© Alan F. Dowling, PhD 1995-2017

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 Key Differences:
Health Care vs. Other Industries

(cont.)
• Physicians and other clinicians use expertise unique to health
care.
• Health care historically has primarily “sold” process, not
outcome.
• Physicians and other clinicians are organized to maintain their
autonomy.
• The health care industry is not a free market—it is regulated
and U.S. society increasingly views health care services as
an entitled right rather than a purchased commodity.
© Alan F. Dowling, PhD 1995-2017
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 The ‘uniqueness’ debate…

So, in what ways are the data, analyses & decision

processes of the health industry:
1. The same as any other industry?
2. Unique to this industry?
Are these similarities and differences right and good – or
– wrong and detrimental?
Can we or should we change them?

© Alan F. Dowling, PhD 2012-2017

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 Session Thoughts

• Informatics, analytics & decision making as terms, are not

specific to health care.
• Health is an “industry”.
• There are different ways to categorize health industry
components.
• There are attributes of the health industry that are similar
to and others that are different from other industries.
These attributes, rightly or wrongly, have effected the
data, analysis and decision making in the health industry.

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Thoughts?

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