Addressing the challenges of a rapidly For health plan consumers, buying patterns are changing as a
changing environment result of high unemployment and coverage mandates. Rising
Healthcare technology has advanced to unprecedented levels, premiums are leading employers to shift financial accountabil-
but dramatic changes in the business and political climate are ity to employees. Members and providers are demanding more
making it hard for health plans to keep pace. Today’s health transparency of costs. Consumers and politicians are focused
plan executives and government health insurers must guide on health insurance firms’ financials.
decision making in what is arguably the most complex IT
system in any industry. The solution to these challenges is multi-faceted. In broad
terms, to move toward smarter healthcare, health plans have to
Despite significant progress over the past decade, health plan focus on value, core processes and collaboration—concentrat-
line-of-business executives continue to focus on ways to ing on what they do best and doing it more efficiently. Health
automate the manual processes that drive up administrative plans need to exploit opportunities to form new partnerships
costs and contribute to increasing premiums. To achieve mem- and build future capabilities. And they need to act with speed to
bership targets, health plans must be able to respond quickly to institute change, set leadership agendas and manage risk and
opportunities and competitive threats, and they must be able to performance with transparency.
comply with significant regulatory requirements and mandates.
Most health plans today look at claims or at their environment
For health plan IT decision makers, legacy systems often mean from a plan perspective, from an employer perspective, from a
limited business flexibility. IT resource constraints inhibit the group perspective—almost every perspective except the
company’s ability to rapidly introduce and absorb change; the member. But that is about to change.
IT staff cannot code fast enough to keep up with the demand.
Clearly, the point-solution approach no longer works. Adding Today’s challenges to health plans call for business
to these pressures, evolving regulations and standards present transformation—a shift away from a product business model
significant challenges: code set changes, for example, require and into a service model. The individual healthcare member is
periodic system, process and procedure overhauls. now the customer.
The IBM and IBM Business Partner assets that comprise the
Health Integration Framework reflect more than 10 years of
success in the healthcare industry. The framework offers a
superior approach to the two traditional practices of custom
development and packaged applications use. Custom
development can be both lengthy and expensive, while pack-
aged applications are frequently inflexible, stand-alone, and
require heavy customization.
Core systems modernization—the way Case study: Modernized EDI gateway lays the
to flexibility foundation for compliance
Core systems modernization enables business leaders A large health plan that serves more than 2.8 million members
to define business processes and use enabling tech- was faced with an aging EDI infrastructure and needed to
nology that will drive the metrics and business results comply with HIPAA 5010 and ICD-10 mandates.
required by a health plan. Solution components for
core systems modernization include: Smarter business outcomes
IBM Business Partner, Edifecs, Inc. modernized the company’s
• Health plan data model EDI gateway and channel architecture, laying the foundation
• Data warehouse and management services for compliance with HIPAA 5010 and ICD-10 mandates. The
• Single view (member health) new infrastructure prepares for migration to stream based
• Healthcare analytics/business intelligence transactions, such as HL7.
• IT and infrastructure optimization
• Member-centric operations integration Key technologies
WebSphere Message Broker
IBM skill sets include: WebSphere Transformation Extender with HIPAA Pack
WebSphere Partner Gateway
• Core systems operations and process redesign
• Business information requirements definition
• Information architecture and integration to
business
• Application management and maintenance
11 The IBM Health Integration Framework: Accelerating solutions for smarter healthcare
Why IBM
IBM’s deep industry expertise provides the foundation for
solving the most complex problems in the delivery of healthcare
and health plans. A leader in working with and transforming
healthcare organizations through service oriented architecture
(SOA) and information management, IBM employs dedicated
technology research professionals, including the largest clinical
consulting staff in the United States. With its long-term
commitment to industry standards, IBM has developed proven
business transformation and health analytics methodologies
and global delivery capabilities.
ibm.com/software/industry/healthcare/
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