How Is Analytics Used in Healthcare?

Whether you’re an oncologist, a nurse, or any other healthcare professional, you’ve probably wondered, “How is analytics used in healthcare?” You may think about cost-effectiveness, diagnostics, supply chain management, or fraud detection. These are all essential aspects of health care, but how are they used in healthcare? Read on to discover how analytics can help you make better decisions. You’ll be surprised to find out that there are so many other uses for analytics in healthcare.


Health care policy-makers often have difficulty determining whether a specific intervention is cost-effective. However, cost-effectiveness ratios within a narrow range can be misleading. For instance, the cost of a program to reach the first one percent of the population is relatively high, considering fixed costs, training, and management systems. However, once this population begins to receive healthcare services, the average price may drop as improvements in health and coverage grow. For example, in the Middle East, the cost of community-based ambulances can save nearly 3,500 lives.

When evaluating cost-effectiveness, clinical trials are often the source of data for the study. As a result, the cost-effectiveness analyses may not apply to other patient populations, practice settings, or time horizons. Further, there may be differences between the assumptions and methods used by the researchers. In these cases, the results of a study can differ substantially from the results obtained using cost-effectiveness analysis.


Data analytics can support a variety of different areas in health care. For example, descriptive analytics can answer questions about readmission rates for a particular hospital or the rate at which specific diseases are diagnosed in patients. These results can then be compared to historical trends to identify anomalies, and discovery work can begin. This type of analytics can also predict the likelihood of a patient developing a specific disease if one exists.

This form of analysis is helpful in many industries, including manufacturing, retail, and health care. Using data and analysis to make predictions can help companies understand trends and better target their marketing campaigns. Using these data can develop predictive models that can help improve patient outcomes and quality. And because it’s easy to use and affordable, it’s the perfect tool for the job. In the healthcare industry, diagnostic analytics could help you create a customized solution for various challenges.

Supply chain management

A complex health care environment can pose challenges for the supply chain management. In addition to the increased complexity, the involvement of multiple stakeholders and the complexity of the health care sector make such a task challenging. However, hospitals can benefit from a more efficient supply chain with suitable purchasing activities and inventory management techniques. Read on to learn about the key strategies to optimize healthcare supply chains. This will improve patient care and reduce costs. In addition, you will gain better visibility of your inventory, increasing patient care and reducing waste.

Healthcare supply chain management requires the responsiveness of all members of the chain. Supplier responsiveness is critical in the healthcare supply chain because the slackness of one member can cost a life. It also requires an efficient medical service network and logistics management. Pharmaceutical companies and surgical and clinical equipment manufacturers are essential members of the healthcare supply chain. Moreover, healthcare supply chain management requires complete information flow, which is necessary for the smooth functioning of the supply chain.

Fraud detection

Analytics for fraud detection in healthcare begins by grouping providers by behavior. Next, a system must flag behavior that is clearly out of the norm and isolate potential fraudsters. This is particularly difficult in unsupervised settings where a hospital isn’t monitoring the conduct of all providers. Data mining techniques can help identify outliers and flag them for further investigation. They can also provide support for a manual audit process. Ultimately, fraud detection in healthcare will help prevent costly errors and maximize profitability.

The best way to avoid false positives is to train your data to avoid false positives. Data scientists must spend thousands of hours preparing big data to avoid false positives. Another challenge is that healthcare practices constantly evolve, and historical data may no longer apply. Fortunately, experts in data analytics are up to the task. By using a robust data mining system, hospitals can identify fraud and detect it before it has a chance to cause harm.