Dive Brief:
- Healthcare executives are bullish on their investments in population health programs, with more than half predicting a return on those projects within three to four years, according to a survey produced by audit, tax and advisory firm KPMG LLP.
- "Our clients see benefits from population health management programs as a part of the solution to reduce avoidable medical costs and variability in care," West Johnson, a KPMG advisory partner who heads provider transformation, stated in the press release. "Preventive care is given a big priority in these programs, since they deliver improvements in efficient and effective care with a high degree of patient engagement."
- In addition, 20% of the executives who responded believe that investments in health IT and data and analytic tools will deliver returns in one to two years. Meanwhile, 36% felt the payback on those investments might take as long as three or four years, showing a majority expect to recoup their costs within this time frame. Finally, 29% see the investment in population health generating black ink on the spreadsheets in five or more years. Only 14% see them not recouping their costs at all.
Dive Insight:
Population health is a concept that many are still struggling to realize, if for no other reason than it requires the digestion of a lot of data to make it work. It also takes integration and collaboration across multiple healthcare providers, a feat which the industry still finds awkward despite entities like ACOs.
More to the point, the stakes are rather high for both the survey-provider and the survey-takers, so why wouldn't they play up this model's bright and sunny future?
Given these concerns, it might be wise to take the KPMG analysis with a grain of salt. While there is good reason for optimism, population health management is easier to discuss than it is to execute. It's worth bearing in mind that the entire managed care industry emerged from a "keep people healthy, save money" model—but has seen only sporadic success over decades of trying. We'll put this one in the "wait and see" file.