Impact Insights

Week in Review 10/31/14

The top 1% of patients account for 22% of costs. Becker Hospital Review shared a recent report by the Medical Expenditure Panel Survey which also noted as general findings:

  • The top five percent of the population accounted for 50 percent of total expenditure,
  • The top 10 percent of the population accounted for 66 percent of total expenditures,
  • The top 50 percent of the population accounted for 97.3 percent of overall healthcare expenditures; while the lower 50 percent accounted for only 2.7 percent of the total.

Impact Advisors’ Thoughts: Ongoing studies such as this support the predictions that population health and analytics may eclipse EHRs as a market offering. The ability to manage and reduce the impact of the primary “offenders” of health care costs will be a critical element of success in the market transition to value-based reimbursement.

 

Optum will acquire Alere Health. Modern Healthcare reported the healthcare consulting and technology firm agreed to buy the care-monitoring company for $600 million in an all-cash transaction. Alere Health offers programs that manage chronic health conditions and help with care-management issues such as smoking cessation, pregnancy and weight loss. Optum CEO Larry Renfro said Alere Health’s products are a “strong fit with our focus on empowering consumers to make more informed decisions, achieve healthier lifestyles and take greater ownership of their health.”

Impact Advisors’ Thoughts: Optum continues its efforts to become all things to all population health and analytics buyers. Alere’s expertise will likely help Optum customers implement wellness programs aimed at reducing overall health care costs.

 

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