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In 2015 expect increasing healthcare challenges from (i) aging populations and rising chronic illnesses, (ii) escalating costs and patchy quality, (iii) access, (iv) changing technologies, and (v) security. 
 
Aging populations and chronic illness
Aging populations and the escalating prevalence of chronic lifelong diseases, will drive demand for healthcare in 2015, and impose significant burdens on healthcare systems.
 
Europe has the world's highest proportion of people over 60. By 2017, 20% of Europeans will be over 65. By 2050 about 40% will be over 60. The US has similar trends. This aging and the increasing prevalence of chronic lifestyle diseases will continue to drive healthcare expansion, and pressure to reduce healthcare costs.  
 
Escalating costs and patchy quality
According to the World Healthcare Outlook of the Economist Intelligence Unit 2014, total global health spending is expected to grow at over 5% in 2015.
 
In Europe rising government debts, constraints on tax revenues, and aging populations will force health providers to make difficult choices about the provision of healthcare. Rising demand, and continued cost pressures will increase pressure on traditional healthcare business models and operating processes to change.
 
Despite the expected annual productivity and efficiency savings of some 4%, UK healthcare expenditure in 2015 is estimated to be about 10.3% of GDP. In the absence of changes to the delivery model, the UK's NHS funding gap is likely to increase significantly in 2015.
 
In their struggle to manage the escalating healthcare costs, health providers will accelerate their transition from volume to value. This will mean a greater emphasis on improving outcomes while lowering costs. This will drive payers to seek out global best practices of delivering affordable quality healthcare such as Narayana Health.
 
Access 
Improving access to healthcare will be one of the most pressing policy issues in 2015. Shortages of health professionals represent significant challenges in healthcare access, and healthcare systems will be pressed to recruit, and retain health professionals.The US is addressing this. US employment in healthcare increased from 8.7% of the civilian population in 1998 to 10.5% in 2008, and is projected to rise to 11.9% (nearly 20 million people) by 2018.
 
The UK is not in such a good position. In 2012 the UK had a shortage of 40,00 nurses, which it hasn't resolved. This is compounded by shortages GPs. Europe has an estimated shortage of some 230,00 doctors.
 
Increasingly, developed countries recruit health professionals from developing economies. The morality of this will be further questioned in 2015 as the policy significantly erodes the number and quality of healthcare professionals in emerging countries.
 
Changing technologies
The development of healthcare technologies has been rapid, and in some cases disruptive. Technologies such as telemedicine, electronic health records, mHealth, e-prescriptions, and predictive analytics have changed the way health providers, payers and patients interact, and contributed to improved quality of care, lower costs and improved outcomes. In 2015 expect the spend on healthcare technologies to slow.  
 
Security    
Reportedly, there is a growing and lucrative black-market for personally identifiable information, and personal healthcare information. Many healthcare organizations already have low security budgets, and only about 50% employ adequate encryption technologies to secure their endpoint data. Compared with other industries, healthcare experiences significant losses of endpoint healthcare data. Security challenges for the healthcare sector will accelerate in 2015. 
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Globally, healthcare is at the centre of a big data boom that may prove to be one of the most significant drivers of healthcare change in the next decade. Today, we're collecting more information than at any point in healthcare history.

In the UK, big data strategy is spearheaded by Health Secretary Jeremy Hunt and NHS England. In the US it is led by the Obama Administration's big data R&D initiative.

American federal health agencies are contributing five-years of public datasets and analytics for genomics and molecular research to a cloud-based research platform hosted by BT. This will compliment the de-identified NHS population, medical and biological datasets that already reside in the cloud.

Failure to deliver

Analyzing these data is expected to enable earlier detection of effective treatments, better targeted clinical decisions, real-time bio-surveillance and accurate predictions of who is likely to get sick. These promises are predicated on the interoperability of the data and the availability data analysts and managers.

According to a 2011 McKinsey & Company Report, "The US alone faces a shortage of 140,000 to 190,000 people with deep analytical skills as well as 1.5 million managers and analysts to analyze big data and make decisions based on their findings".

So far, healthcare systems have failed to deliver on big data promises.

Big data's potential benefits for healthcare

Driving this new open epidemiology research initiative is big data's successes in other sectors and the pressing need to modernise healthcare infrastructure. Like many emerging technologies, the future of big data in healthcare is seen to be full of benefits.

Little data

The promises of big data overlook the challenges of little data. Little data collected at the unit level have two principal challenges: accuracy and completeness.

Insights from data are predicated upon the accuracy and completeness of that data. When data are systematically biased through either errors or omissions, any correlations made are unreliable and could result in misguided confidence or the misallocation of scarce resources.

In healthcare, important clinical data, such as symptoms, physical signs, outcomes and progress notes rely on human entry at the unit level. This is unlikely to change. Health professionals at the unit level will continue to exert discretion over their clinical documentation. Unit level information - little data - presents the biggest challenge for the interoperability within and among healthcare big data initiatives.

Ian Angel, an Emeritus Professor of Information Systems at the London School of Economics uses the North Staffordshire Hospital debacle to illustrate how professionals at the unit level react to data-driven ruled-based management by manipulating data. "Surgeons pushed dying patients out of the operating room into corridors to keep "death in surgery" figures low. Ambulances parked in holding-patterns outside overstretched A&E units to keep a government pledge that all patients be treated within four hours of admission".

Proprietary systems

Big data are most newsworthy, but least effective. Little data are most influential, but least newsworthy.

There are a plethora of technology vendors vying to help a plethora of health providers' to lock-in millions of patients at the unit level with proprietary software systems. Scant attention is given to this.

Further, software vendors predicate their sales on the functionality and format of their systems and data. This obscures the fact that the data format is 100% proprietary. Over time, this cycle of proprietarily locking-in patients at the unit level has created a sclerosis in healthcare infrastructures, which is challenging to unblock. This presents a significant challenge to interoperability and the success of big data.

Errors in little data

Little data documentation can be enabled by technology. For instance, machine learning is a form of artificial intelligence that trains systems to make predictions about certain characteristics of data. While machine learning has proved successful for identifying missing diagnoses, it is of limited use for symptoms and the findings of physical examinations.

Despite technological advances, clinicians' notes remain the richest source of patient data. These are largely beyond the reach of big data.

Another technology, which supports clinical documentation, is natural language processing (NLP). This identifies key data from clinical notes. However, until the quality of those notes improve, it will be challenging for NLP programmes to procure the most salient information. Continued investment in technical solutions will improve data accuracy, but without fundamental changes in how care is documented, technology will have limited ability to rid data of systematic errors.

Incomplete data

Even if we achieve perfect data accuracy, we're still faced with the challenge of data fragmentation. Incomplete data are common in clinical practice and reflect the fragmented nature of our healthcare systems. Patients see multiple health professionals who do not communicate optimally.

Incomplete data, like inaccurate data, can also lead to missed or spurious associations that can be wasteful or even harmful to patient care.

Privacy is less challenging

Solutions to address fragmented data are no easier than those to address inaccurate data. For decades policy makers have pursued greater interoperability between electronic clinical systems, but with little success.

Recent initiatives on interoperability of big data primarily focus on moving specific clinical data, such as laboratory test results, between discrete health providers. This does little to ensure that provider organizations have a comprehensive picture of a patient's care across all care sites.

Privacy advocates are understandably concerned about efforts to aggregate data. However, with adequate de-identification and security safeguards, the risks of aggregation can be minimized and the benefits of better care at lower costs are substantial.

Takeaway

To reap the benefits from big data requires that we understand and effectively address the challenges of little data. This is not easy. But ignoring the challenges is not an option.

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Can a dancing elephant help the NHS?
 
In May 2013 Sir David Nicholson, the head of NHS England, announced his resignation. Nicholson was an insider's insider and his in-depth knowledge of the organisation served well his political masters, but he was unable to bring about much needed transformative change.   
 
Escalating costs, changing technology, the growth and spread of diseases and an ageing population all conspire to present the NHS with its biggest challenge since it was created in 1948.
 
Will the new leader be another insider appointed to continue the political chess game with our national health? Or, will the new CEO seize the opportunity presented by lessons from outside the NHS and lead the transformative change that the NHS sorely needs?
 
Lessons from outside the NHS
Twenty years ago IBM, once the most profitable company ever, faced a similar challenge to that confronting the NHS today. In 1993, IBM was on the brink of bankruptcy and considered by various commentators as, "a dinosaur and a wreck". IBM appointed Lou Gerstner, a business leader, to transform the Company. Nine years later, IBM had become one of the world's most admired companies. Gerstner described how he achieved the transformation in a book, Who Says Elephants Can't Dance?
  
What are the similarities between IBM and the NHS?
What lessons can the NHS learn from IBM?
 
Inward looking organisation resistant to change
By the early 1990s, IBM had become an inward looking mainframe manufacturer driven by internal systems rather than customer needs. The PC revolution gave IBM the equivalent of a severe heart attack and put computers in the hands of millions and shifted power and purchasing decisions to individuals.  
 
By 1993, IBM's annual net losses reached a record US$8 billion and it was on the verge of bankruptcy. Before the arrival of Gerstner the Company's reaction to its crisis was to deploy resources more effectively, improve outcomes, control costs, split its divisions into separate independent businesses and attempt to sell some of them.
 
Parallels with the NHS
The NHS is an inward looking public monoploly, funded by the UK taxpayers to the tune of £110 billion a year, high bound with its own standards and procedures.
 
Like the old IBM, the NHS is less sensitive to its rapidly changing external environment, which includes rising patient expectations, expensive new drugs, the impact of an ageing population and the escalation of chronic non communicable diseases.
 
The response of the NHS to its current challenges is similar to IBM's initial response before the arrival of Lou Gerstner. It is focused on cost savings, streamlining its services and privatising specific functions. Such a strategy did not turnaround IBM and will not turnaround the NHS. This is understood by both the National Audit Office and the Parliamentary Select Committee on Health, which have called for the NHS to engage in "transformative change".
 
Stepping through a time warp
Transformative change for IBM began in 1993 with the appointment of Lou Gerstner as CEO at a time when IBM, similar to the NHS today, was bloated with excess costs and bureaucracy and its people demoralised.
  
Interestingly, Gerstner was neither an insider nor an industry expert, but was recruited from Nabisco, an American biscuit manufacturer and had had previous experience at American Express and the consultancy firm McKinsey & Co. Gerstner likened his arrival at IBM to stepping through a time warp. The world had moved on while IBM stood still. This resulted in a significant mismatch between market needs and IBM's offerings. 
 
When Gerstner took the reins at IBM, the conventional wisdom, both from industry pundits and IBM insiders, was that the only solution for saving IBM from eventual disaster was to cut costs, increase efficiency, divisionalise and sell-off parts. 
 
Complete integrated solutions
Gerstner was determined to keep IBM together and convinced that the only way to do so was to change its culture: away from an inward looking bureaucracy to a responsive service company in-tune with customers' needs. Gerstner recognized that IBM's enduring strength was its core competency to provide integrated solutions for customers with complex problems. This, Gerstner judged to be the unique IBM advantage.
 
Gerstner's approach was to drive the Company from the customer view and, "turn IBM into a market-driven rather than internally focussed process-driven enterprise". And it worked. According to Gerstner, keeping IBM together and changing its culture, "was the first strategic decision and, I believe, the most important decision I ever made, not just at IBM, but in my entire business career".
 
Will the new leader of the NHS have Gerstner's strategic clarity, rottweiler focus and determination to execute?
 
Importance of culture
During his customer focused transformation, Gerstner learnt not to be fooled by bogus measurements and data associated with customer satisfaction and targets. "People"Gerstner said, "do what you inspect, not what you expect".
 
Gerstner's most important and proudest accomplishment was cultural change that brought IBM closer to its customers by inspiring employees to drive toward customer defined success.
 
"Until I came to IBM, I probably would have told you that culture was just one among several important elements in any organization's makeup and success; along with vision, strategy, marketing, financials, and the like I came to see, in my time at IBM, that culture isn't just one aspect of the game, it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value".
 
Lessons for the NHS
In, Who Says Elephants Can't Dance? Gerstner describes three important insights, which helped transform IBM and could help the NHS:  
 
1. A service intergrator controls every major aspect of an industry
2. Every major industry in today's network-centric world is built around open standards
3. It is important to abandon proprietary development, "embrace software standards" and "actively license technology".  
 
In 1993, many people criticized IBM for their selection of Gerstner because he was neither an insider nor a technologist. You can hear something similar were the NHS to appoint a CEO from outside the healthcare industry.  Based on IBM's transformation and the insights described in Who Says Elephants Can't Dance? Gerstner was the right person for the job.
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