Mobilizing Data for Operational Efficiency in Health Care: A Path Forward

In October 2021, McKinsey & Company released a landmark report highlighting a critical issue in the U.S. health care system: administrative inefficiency. According to the report, approximately 25% of total U.S. health care expenditures — about $1 trillion — go toward administrative tasks. Even more striking, nearly 30% of these expenditures stem from inefficiencies. Fast forward to September 2024, and the latest Commonwealth Fund report confirms these concerns, ranking the U.S. ninth out of 10 high-income countries in administrative efficiency, only ahead of Switzerland.

This growing issue leaves health systems across the nation grappling with an essential question: How can hospitals and health systems improve efficiency to alleviate these costs?

The newly published AHA Market Scan Trailblazers report, “Mobilizing Data to Improve Operational Efficiency,” offers a compelling solution. It explores how health systems are leveraging emerging technologies to unlock and mobilize core data sets, thus driving substantial operational improvements and better care outcomes.

The Path to Efficiency: Data Mobilization in Health Systems

In a recent survey by Guidehouse, health care executives emphasized digital and IT investments as the leading strategies for operational efficiency. Digital innovation, they believe, has the potential to orchestrate patient care in the most streamlined way possible.

At the forefront of this effort is real-time location system (RTLS) technology. By capturing data at every point in a patient’s care journey, RTLS technology empowers health systems to gather valuable insights on patient movements and care processes. With data-driven decision-making now a reality, the global health care market for RTLS technology is set to grow significantly — projected to quadruple by 2032.

How RTLS Technology Transforms Hospital Operations

RTLS offers health systems a bird’s-eye view of patient care processes, enabling them to track who did what, when and where across their facilities. However, to realize the full potential of the data, hospitals must integrate it with existing health information technology systems, according to Rom Eizenberg, chief revenue officer at Kontakt.io, a New York-based tech firm.

By creating a unified data ecosystem, hospitals can merge RTLS data with the electronic health record and administrative, clinical and financial systems. Artificial intelligence (AI) then analyzes the consolidated data, transforming unstructured information, like clinical notes, into actionable insights. This interoperable system also leverages internet-connected technology, allowing devices to communicate autonomously without manual input.

Hospitals and health systems that implement such data ecosystems gain real-time insights into:

• Patient locations: Physical and medical location within the care process.
• Care team availability: Which staff members are available and where they are.
• Medical resources: The status and availability of equipment, spaces and other assets.

Previously, these insights were siloed across various systems, limiting their impact. An AI-driven RTLS platform unites these data points in a single, centralized location, empowering anyone who needs access to view the comprehensive care picture.

Case Study: Northeast Georgia Health System’s Data-Driven Safety Initiative

Northeast Georgia Health System (NGHS), a five-hospital system with 950 beds, collaborated with Kontakt.io to develop an RTLS solution to enhance both patient and staff safety. Together, they deployed Bluetooth low-energy smart badges equipped with a duress button, allowing staff to communicate their identity and location to security instantly if needed.

The results have been transformative: More than 10,000 NGHS staff members now are equipped with these badges, providing real-time location data to help prevent and mitigate dangerous situations. The impact has been profound — not only enhancing safety for both staff and patients, but also improving patient outcomes by streamlining response times and coordination.

Key Benefits of Data Ecosystems for Health Care Efficiency

By building an integrated, AI-driven data ecosystem, hospitals can convert data into powerful efficiencies, benefiting administrative, clinical, financial, operational and workforce functions. Here’s how each area is transformed:

Administrative

Staff members spend less time searching for patients, staff and equipment. Data-driven automation reduces time spent on paperwork and manual tracking, allowing personnel to focus on higher-value tasks.

Clinical

Patients experience reduced wait times for procedures, diagnostics and discharge, leading to better outcomes and higher satisfaction scores.

Financial

With accurate, real-time data capture, billing and coding processes become more efficient. This leads to improved charge capture, better claims management and enhanced revenue-cycle performance.

Operational

Hospital staff spend significantly less time coordinating logistics and searching for resources, as real-time data reveal the location of patients, staff, equipment and space. Efficiency in these areas translates to cost savings.

Workforce

By reducing job stress and burnout, hospitals can boost staff satisfaction and retention rates. Personnel, especially clinical staff, can focus on practicing at the top of their licenses, leading to improved care delivery.

As more hospitals and health systems recognize the advantages of integrating RTLS with their existing systems, the promise of streamlined, efficient and responsive health care becomes more tangible. By making targeted investments in digital and IT infrastructure, health care leaders can unlock vast potential for operational efficiency, improved patient care and staff well-being across the sector.

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