Healthcare Providers Find Lack Of Data, Uncertain Payoff Hinder Expansion Opportunities: KPMG Survey

Sunday, January 17, 2016 - 20:52

Healthcare providers are continually looking for opportunities to expand and bolster service offerings to patients, but may not be taking advantage of valuable data that may offer insights about how to proceed. According to a poll conducted by KPMG LLP, 57 percent of managers and executives at providers say that an uncertain payoff and a lack competitive intelligence about marketplace needs prevents them from expanding service lines.


The same poll found that 65 percent of respondents say the biggest opportunity for using claims data for business intelligence is to improve cost efficiency and more effective contracts. Another 18 percent of providers see the biggest opportunity in patient engagement.  


“Regulatory and market forces are driving change at a revolutionary pace for providers. The top issue they face in the market is how to position themselves to attract consumers and maintain a relationship over time that allows them to deliver efficient, high-quality care,” said Dion Sheidy, KPMG partner and healthcare advisory industry leader. “Capturing value and taking on the risks associated with broader aspects of care delivery is top of mind with executives across the board. Data & analytic tools can help providers make better decisions about where to invest their resources.”  


According to the KPMG poll, 37 percent of respondents pointed to prevention as the area where they can make the biggest impact on total cost of care, followed by 27 percent, who said coordinated follow-up care is where treatment costs can be influenced.


 “As we continue to look at this care migration from volume to value, today’s marketplace is forcing organizations to rethink historical relationships and find long-term solutions,” Sheidy said. “Providers must consider how to talk about their value proposition. We believe that utilizing data analytics to understand market positioning – as well as cost of care within the market – is crucial to being able to engage patients and serve the medical needs of communities. The ability to identify opportunities in the marketplace, develop service line strategies, and to retain or attract new patients is critical.”


When asked about how they have adapted to bolster certain service areas, 43 percent of providers surveyed say they have collaborated more for certain medical specialties. Twenty seven percent of respondents have adapted by pursuing formal joint venture arrangements.


“Evaluating the market and total cost of care with data gives you a different lens to assess an organization’s performance against its peers and look for the opportunities it creates,” Sheidy said. “This level of transparency can improve performance internally and can identify where you are effective and efficient in the marketplace.”


The survey results came from a KPMG Healthcare & Life Sciences Practice webcast, hosted by Sheidy and Director James Case and titled Capturing the value proposition: Repositioning hospital service lines in a consumer-focused market (please click link for a replay). The results represent the views of 126 respondents, who identified themselves as healthcare providers.



KPMG LLP, the audit, tax and advisory firm (, is the U.S. member firm of KPMG International Cooperative (“KPMG International”). KPMG International’s member firms have 162,000 professionals, including more than 9,000 partners, in 155 countries.