Reimagining Chile’s healthcare system: Harnessing the power of strategic analytics and Big Data to keep patients healthier for less money – Rafael Epstein, Marcelo Larraguibel, Lee Ullman

Lee Ullmann, Director of the MIT Sloan Latin America Office

Lee Ullmann, Director of the MIT Sloan Latin America Office

From El Mercurio

Economic growth, urbanization, and rising affluence are having a profound impact on the health of Latin Americans. Very little of it is positive, especially in Chile.

While life expectancy has increased faster in Chile than in most OECD countries and income per person has quadrupled over the last quarter-century, great disparities continue to exist between the country’s public and private healthcare systems. Healthcare costs are skyrocketing and many of the country’s public hospitals—especially those in rural areas—face a shortage of general practitioners and family physicians.

The modern Chilean diet—comprised largely of ultra-processed foods and sugary drinks—is taking a toll. One third of Chilean children are overweight or obese; one quarter of Chilean adults are in those categories. Chronic diseases, like diabetes, are increasingly prevalent. Stress-related disorders and mental illnesses are also on the rise, as are rates of alcoholism, tobacco use, and certain types of cancer. Over the last decade suicide has been one of the top 10 causes of death in Chilean men.

Today’s statistics are bleak, but we have hope for the tomorrow. Technological innovations and discoveries, powered by Big Data, hold enormous opportunities for Chile and Latin America overall. To explore this further, we are hosting a conference next month in Santiago—“Strategic Analytics: Changing the Future of Healthcare”—that aims to highlight the many ways in which data and analytics promise to transform the provision of healthcare. The conference is expected to draw hundreds of researchers and leaders from academia, health care, government, and industry.

Our agenda is ambitious. By combining MIT’s expertise in analyzing massive amounts of data and optimizing complex systems with Universidad de Chile’s path-breaking medical research and Virtus Partners’ strategic and operational insights, we aim to unravel the complicated underlying problems that plague the healthcare system.

Of course many countries—including the US—face healthcare challenges. Our hope is that this conference inspires engineers, medical professionals, economists, and technologists from all over the world to see the benefits of working together to improve human health. Our goal is simple: to keep patients healthier for less money.

Progress is afoot. At MIT, researchers have devised algorithms that boost treatment for certain diseases, including diabetes, using a combination of machine learning and electronic medical records. At a time when 1.7 million Chileans, or about 12.3% of the population, have diabetes, this research has important implications.

The dawn of telemedicine—which enables doctors to monitor patients from afar—also holds promise, particularly for patients who live in remote areas. (Chile is a long and skinny country, and about 10% of the population lives in rural areas.) Researchers at the Universidad de Chile’s Medical Informatics and Telemedicine Center are using sensors and other devices to monitor patients’ blood pressure, heart rate, weight, and blood sugar levels from great distances. Technologists at the MIT Media Lab are finding new ways to apply emotion technology and wearable devices to help sufferers with autism, anxiety, and epilepsy manage their symptoms.

Researchers are also finding new ways to contain medical costs. Using Big Data to measure returns of healthcare spending, economists are able to help hospitals uncover best practices and align incentives to improve the quality of the care they provide. This has special relevance to Chile. The country’s Fondo Nacional de Salud (FONASA) struggles with overwhelming management challenges and increasing costs. Meanwhile, access to high-quality technology and healthcare services is still limited to the wealthy.

The promise of Big Data is immense, but so, too, are its perils. Many questions remain: How do we ensure that patient data stays both confidential and secure? How do we safeguard against Big Data applications creating even more disparities between the rich and poor, and instead use it to build a more equitable healthcare system for all? And how should governments cope with managing the high costs of aging populations?

These are big challenges and nothing will be solved overnight. Our hope is that the conference will point to new ideas and solutions that improve patient health for generations to come.

Read the original blog post at El Mercurio.

Lee Ullmann is the Director of the MIT Sloan Latin America Office.

Rafael Epstein is the Provost of Universidad de Chile.

Marcelo Larraguibel is the Founder of Virtus Partners, the management consultancy, and an Advisory Council Member of the MIT Sloan Latin America Office (MSLAO).

Why managing data scientists is different — Roger Stein

MIT Sloan Senior Lecturer Roger Stein

MIT Sloan Senior Lecturer Roger Stein

From the MIT Sloan Management Review

While businesses are hiring more data scientists than ever, many struggle to realize the full organizational and financial benefits from investing in data analytics. This is forcing some managers to think carefully about how units with analytics talents are structured and managed.

How can organizations realize the promise of the evolving disciplines that we broadly call analytics?

Although financial firms were among the first to recruit “quants” to use sophisticated mathematical models and high-powered computing hardware, analytics groups have now taken hold in areas ranging from health care to political campaigns to retailing to sports. Organizations like these can benefit from the insights gained by financial service firms on how best to manage teams doing advanced analytics. It requires skills and philosophies that are different from those that arise in managing other groups of smart professionals.

Rather than just involving oversight and planning, managing a data science research effort tends to be a dynamic and self-correcting process; it is difficult to plan precisely either a project’s timing or final outcomes. For those unused to this type of work, this process can seem quite messy — an unexpected contrast to a field that, from the outside, seems to epitomize the rule of reason and the preeminence of data.

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To Manage a Successful Sports Team, Focus on Data — Ben Shields

MIT Sloan Lecturer Ben Shields

From Xconomy

The mantra of youth sports where “everyone gets a trophy” is permeating professional leagues. These days every team can claim some semblance of winning. In the bygone era of the NFL, two teams made the playoffs and that consisted of one game, the Super Bowl. Today six teams from each conference advance, and there is talk of adding more. In MLB, it used to be that the league leaders won the pennant and then went to the World Series; now, five teams in each league make the playoffs. In the NBA and the NHL, meanwhile, more than half of all teams make the post-season.

As the definition of post-season success broadens and winning becomes a commodity, a team’s performance isn’t enough to stand out in the $750 billion sports industry. And at a time where traditional revenue streams are under pressure and the competition for money, media, and sponsors remains stiff, sports organizations have to be more innovative.

So, what should they be doing to drive revenue? How can they use technology to attract and interact with fans? And, in the Age of Big Data, what’s the best use of analytics to increase ticket sales? These are some of the questions on the table at the 2015 MIT Sloan Sports Analytics Conference.

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New MIT Sloan Management Review study: An advanced analytics culture outweighs all other factors — David Kiron

The Need for Culture

The Need for Culture

What distinguishes the winners from the losers among companies converting data and analytics into a positive force in their strategies and operations? And what practices are keeping the winners ahead?

The Analytics Mandate, a new research report from MIT Sloan Management Review and SAS Institute, takes several steps toward answering these questions.

Our most significant finding? Our study shows that an advanced analytics culture outweighs other analytics-related factors -including data management technologies and skills-among companies that strongly agree they are gaining a competitive advantage from analytics. Essentially, a strong analytics culture is the lynchpin in moving from competitive parity to competitive advantage.

The need for change within a corporation’s culture, and the best way to achieve it, are both nicely illustrated in a case study included in our report.  WellPoint, the largest for-profit managed care organization within the Blue Cross Blue Shield umbrella, knew that sharing insurance data with physicians would provide doctors with a 360-degree medical view of every patient. This in turn, would better enable them to spot patients more likely to go to the emergency room or be readmitted to a hospital, contributing to expenses that drive up the high cost of health care delivery.

Within WellPoint, creating the data reports for physicians initially became a classic showdown between IT and interests from the business side.

The initial reports, prepared by the IT team, were late and lacked fundamental functionality.  For instance, different units within the company reported an emergency room visit in different ways.  The IT team’s explanation: no one told them the definitions had to be the same. This much was true — the business side didn’t think it needed to specify that emergency room visits be consistent across reports. They had assumed this was a given.

The high-profile project was subsequently placed in Red status. At this point, senior management got involved. Problems were brought to executives who, in turn, ensured resources were allocated. Outside consultants and experts were hired. More resources were diverted to the project.

Finally, after many challenging discussions, IT and the business side began working together using an iterative development approach called “Agile”, which focuses on “user stories.”. This meant understanding the perspective of the end user—the provider—and the context in which he or she would be using the data, as opposed to just developing according to a static set of  requirements.

Early reaction to the data system from doctors has been highly positive.  Over time, WellPoint believes that the proactive, coordinated-care model made possible when providers have actionable insights at their fingertips can cut health care costs by as much as 20%. That could work out to billions of dollars, given that WellPoint reimbursed more than $99 billion in health benefits for commercial and individual members in 2013.

In short, to create strategic benefits with analytics WellPoint had to change its organizational behavior. Without an effective collaboration between the business side and IT, the program would have remained in jeopardy. Without leadership’s involvement, the program would have remained in jeopardy. Preparing data for a strategic role often means changing business conduct and that, more often than not, requires a top down process to create the necessary alignment of incentives and goals.

To read the full report, please visit “The Analytics Mandate.”

David Kiron is Executive Editor, Big Ideas initiatives, for MIT Sloan Management Review.

Unlocking the value of data – Allison O’Hair

MIT Sloan Lecturer Allison O'Hair

MIT Sloan Lecturer Allison O’Hair

Compared to five years ago, the amount of data we now generate is huge. Some companies collect that data, but more often than not they don’t do anything with it. Business analytics is an important tool to help organizations harness the power of that data. By unlocking its value, you can do things like improve profits, predict consumer behavior, better understand markets, and make more informed decisions. Most importantly, it can give you a competitive edge.

For those of us in the field of operations research, data analytics is a huge and exciting area. It’s a critical tool for businesses moving forward. As a result, we’re offering MIT Sloan’s popular Analytics Edge course on the MITx online, interactive learning platform this spring. We want to share the cutting-edge knowledge generated at MIT on this important topic with people around the world. Read More »