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Major Applications of Business Intelligence Software in the Healthcare Industry Business Intelligence and Healthcare

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Major Applications of Business Intelligence

Software in the Healthcare Industry

Business Intelligence and Healthcare

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

2. The Healthcare Industry: Finding Ways to Combat Rising Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

3. Healthcare Application Spotlight: The Advisory Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4. Industry Factors Driving Business Intelligence Solutions at Healthcare Organizations . . . . . . . . . . . . . . . 5

5. Applying Business Intelligence to the Needs of Healthcare Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

5.1. Financial Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

5.2. Quality Performance and Safety Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

5.3. Marketing Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

5.4. Claims Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

5.5. Clinical Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

5.6. Patient Care Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

5.7. Operational Performance and Cost Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

5.8. Resource and Human Capital Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

6. Healthcare Organization Snapshots: Henry Schein, Inc., Cancer Care Ontario,

PMSI-Tmesys, and Premier, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

7. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17

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Business Intelligence and HealthcareBusiness Intelligence and Healthcare

Major applications of business intelligence software

in the healthcare industry

With skyrocketing costs in the healthcare industry and an increasingly competitive marketplace,

healthcare providers need to use all the tools at their disposal to operate more efficiently and

effectively to reduce costs through smart business solutions. The healthcare industry is wide-ranging,

and healthcare providers must operate within a multi-tiered information structure—across the

value chain from patients and physicians, to employers and insurance companies, to HMOs and

hospitals. With such a far-reaching scope of services and concerns, healthcare organizations

handle immense amounts of information. Since it’s hard to keep track of important information

and even to know which information is valuable, healthcare providers need the tools to take

advantage of the myriad information at their disposal.

The information technology available today allows

healthcare organizations to make better business decisions

and to better target performance goals. MicroStrategy

offers the healthcare industry business intelligence

software to report on, analyze, and monitor vast amounts

of data through a business intelligence architecture that

helps companies reduce costs, ensure quality care, and

maximize the value of information. Organizations in every

major healthcare segment, including hospital care, physician

services, managed care, government, and public health,

take advantage of the benefits of MicroStrategy’s business

intelligence software.

The Healthcare Industry: Finding Ways to

Combat Rising Costs

Healthcare providers need to keep up with demanding industry challenges to stay viable and

competitive. Constant and drastic increases in the cost of healthcare are having wide-ranging

effects throughout the healthcare industry, evidenced by employers trying to push more

healthcare responsibility onto their employees, and hospitals and healthcare providers facing

intense pressure to keep costs down without sacrificing the quality of the care they provide.

Complicating matters further, increasingly knowledgeable patients are demanding greater plan

flexibility in choosing doctors and treatments, hospitals and health systems are having to write

off record amounts of lost revenue due to default on debts, and a rapidly aging baby boomer

More than 400 of our clients

perform intuitive Web-based

query and reporting analyses

that identify ways to improve

clinical care processes and the

quality of outcomes. Our success

demonstrates that MicroStrategy

is committed to delivering the

best, most comprehensive

business intelligence platform

in the market.

Premier, inc.

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population is placing added strain on healthcare systems. More than ever, healthcare providers

must find new ways to simultaneously provide quality care and control costs. Many healthcare

providers are now focusing their efforts on preventive healthcare and patient education, as well

as working to lower overhead costs by reducing paperwork and transaction times.

The continuing movement toward electronic health information exchange is also changing the

way the healthcare industry operates. The proliferation of e-health is allowing many health

plans to lower their costs, as well as monitor and drive down the costs of providers in their

networks. The availability of health information online is also resulting in greatly increased

consumer knowledge, making patients more discerning in the providers and treatments

they select, allowing patients to manage their own healthcare online, and changing the way

healthcare providers disseminate information. Providers must now make available educational

information about healthcare quality, patient safety, and pricing.

Finally, government is having a growing influence on the healthcare industry. Recent legislation

is inciting healthcare providers to offer more choices within the constraints of health plans,

establish electronic prescription programs, and implement pay-for-performance initiatives.

In addition, the Health Insurance Portability and Accountability Act (HIPAA) is increasing the

availability of healthcare by allowing individuals to maintain insurance coverage without

exclusions or waiting periods after leaving group insurance plans. Plus, growing consumer

privacy concerns are putting added requirements on the healthcare industry to ensure the

security and confidentiality of consumer information. All of these regulatory changes are

placing additional reporting and accountability obligations on healthcare providers, who must

have systems in place to monitor and report on compliance measures.

The Advisory Board Company, a health care research and professional services firm serving

more than 2,600 hospitals and health systems, uses the MicroStrategy platform for its hosted

business intelligence applications. By providing hospitals with improved visibility into their

business via secure Web-based performance reporting, these applications elevate hospital

performance through better, faster, data-driven decision making.

To date, the Advisory Board has developed targeted applications that focus squarely on issues

critical to margin improvement and where the company has significant research expertise,

such as Revenue Cycle, Surgery Performance, and Supply Chain Management. For example,

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healthcare application spotlight

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users of the surgery application are able to track costs, revenues and profits per surgery

case and to view that information by more than 50 attributes, including service line, primary

surgeon, diagnosis related group (DRG), payer, and patient type. Users can also analyze

up to 200 throughput and efficiency metrics to pinpoint bottlenecks and opportunities

to improve Operating Room (OR) utilization. Less technical staff, who require an intuitive,

graphical interface and the ability to diagnose problems efficiently, benefit from pre-packaged

dashboards, scorecards, and reports. Each dashboard, scorecard, and report is the result of

extensive best practices research and quickly guides staff to the most critical information.

Overall, participating institutions are working to decrease supply costs per case by 5%, to

increase net revenue by 1–2%, to increase prime time OR utilization by 5–10%, and to

increase case volume by 5–10%.

A key reason for the Advisory Board’s selection of the

MicroStrategy platform was its integrated suite of products.

In addition to MicroStrategy Web Professional and

MicroStrategy Intelligence Server, Advisory Board applications

employ MicroStrategy OLAP Services to allow users to quickly

add analysis-appropriate metrics and attributes, MicroStrategy

Report Services to facilitate dashboard drill-downs, and

MicroStrategy Narrowcast Server to deliver e-mail alerts when

select metrics cross predefined thresholds. To ensure that

members are able to view institution-specific analyses as well

as cross-hospital benchmarking, applications support both

custom and standardized calculations and attributes.

The Advisory Board employs one MicroStrategy architect and one MicroStrategy administrator

to support these applications (in addition to other technical operations staff), a testament

to the benefits of MicroStrategy’s centralized administration and unified architecture.

MicroStrategy-trained Advisory Board staff with expertise in each functional area oversee each

client’s site, address the majority of user change requests, and ensure high ROI for members via

regular diagnostics, on-demand training, and relevant best practice research to support process

and behavior change.

“Hospitals have substantial opportunity to improve performance using business intelligence,”

reports Dennis Shin, Executive Director at the Advisory Board. “Our research shows that top performing

organizations separate themselves from their peers by their ability to quickly diagnose the root

cause of problems they face on a daily basis. Business intelligence can level the playing field.”

Our research shows that

top performing organizations

separate themselves from their

peers by their ability to quickly

diagnose the root cause of

problems they face on a daily

basis. Business intelligence

can level the playing field.

The Advisory BoArd

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Business Intelligence and Healthcare

Industry Factors Driving Business Intelligence

Solutions at Healthcare Organizations

Healthcare providers must be proactive in managing and utilizing enterprise data if they want

to keep up with or stay ahead of the competition. That’s where business intelligence comes

in. Business intelligence software gives healthcare organizations the ability to analyze the vast

amounts of information they already have to make the best business decisions. The software

allows these organizations to tap into their huge databases and deliver easy-to-comprehend

insight to improve performance and maintain regulatory compliance.

Healthcare agencies, payers, and hospitals can now use business intelligence software to

analyze and improve operations, service quality, resource utilization, claims administration,

and patient care. MicroStrategy can outfit healthcare providers with this software to

maximize their information gathering and make the best use of the data to gain knowledge

and improve business strategies. MicroStrategy enables organizations to reach wide and diverse

user populations and to report on vast amounts of critical data across multiple business dimensions.

The applications of business intelligence in the healthcare industry are far-reaching. First,

healthcare organizations must manage large volumes of data, which easily reach into the

multi-terabyte range. At the same time, these organizations must leverage information from

multiple systems, including clinical charting systems, patient care systems, financial applications,

ambulatory care systems, radiology and laboratory data, and claims data from all major payers.

MicroStrategy’s foundation in relational OLAP is uniquely suited to handle this depth and

breadth of information. Healthcare providers must coordinate information from many areas

to improve their processes. Many healthcare organizations have previously utilized individual,

isolated applications, slowing their process improvement efforts. MicroStrategy’s unified business

intelligence architecture allows organizations to easily integrate and correlate vast amounts of

information from multiple sources, identify relationships among the information, and learn how

different factors affect each other and the company’s bottom line.

In addition, a healthcare provider will have many people in different locations with different

skills who need to use this information for varying purposes—everyone from administrators who

need high-level executive dashboards with drill-down capabilities, to power users who need to

create and design custom reports, to physicians and analysts who must analyze data to identify

life-saving treatments. MicroStrategy offers a single, easy-to-use Web interface with extranet

and intranet capabilities, enabling multiple users to access the information relevant to them.

MicroStrategy’s unique and intuitive analytical capabilities allow different users to manipulate

the data to glean the most from the information that affects their decision-making.

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Healthcare organizations are on task to eliminate manual reviews and modernize record keeping.

MicroStrategy’s self-service reporting capabilities enable individuals to easily produce reports without

iterative back-and-forth requests with IT. Healthcare managers can develop one report template

that results in an unlimited number of automatically personalized reports for each user, including

remote users in a physician network who have instant access over a secure extranet. MicroStrategy’s

extensive reporting capabilities enable healthcare organizations to eliminate manual reviews of

medical records, resulting in quality improvements, increased efficiency, and reduced costs.

Also, healthcare organizations are establishing standards for key performance indicators

based on standards from the Centers for Medicare and Medicaid Services (CMS) and the Joint

Commission on Accreditation of Healthcare Organizations. CMS, the federal agency within the

U.S. Department of Health and Human Services responsible for the Medicare and Medicaid

programs and the State Children’s Health Insurance Program (SCHIP), leverages MicroStrategy for

its healthcare analysis and reporting needs.

MicroStrategy’s BI software offers healthcare organizations a complete range of services, including

reporting on volumes of patient records, monitoring quality and safety, and analyzing market data

and dynamics, all while assuring compliance with patient privacy and data security regulations.

MicroStrategy’s unique business intelligence architecture simultaneously accesses disparate

information, enabling analysis from many sources at once and providing the most thorough and

integrated reporting solutions. MicroStrategy then presents this information in user-friendly reports,

scorecards, and dashboards and allows users to drill into the information to discover new insights,

offering the most intuitive and useful ways to analyze the information to get the desired results —

business strategies that ensure effective resource management and improve the quality of healthcare.

Healthcare Organizations Use MicroStrategy to Report on Performance Metrics

Across a Wide Variety of Business Dimensions, Including:

• Academic Institution• Brand• Business Unit• Claim• Clinical Trial• Customer• Diagnosis Related Group• Employee• Geography• Major Diagnostic Category

• Member• Patient• Payer• Prescription• Pricing• Procedure• Product• Promotion• Protocol• Provider

• Quality Level• Referral Source• Rehabilitation• Research Type• Service• Staff• Therapeutic Class• Time • Treatment• Vendor

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Applying Business Intelligence to the Needs of

Healthcare Organizations

Healthcare providers can use business intelligence in many ways, creating smart business solutions

across the myriad challenges in the healthcare industry.

FInAncIAl AnAlySIS

Healthcare organizations need visibility into the full scope of their financial operations. MicroStrategy’s

single Web interface uniquely provides full transparency, analysis, and delivery of financial and

operational data. MicroStrategy enables healthcare providers to drill from reports into detailed

analyses of costs and revenues, view data underlying cash flow statements, and compare planned

versus actual income and margin. MicroStrategy’s analytical capabilities allow providers to analyze

current care practice patterns to identify unnecessary or under-utilized services, execute cash flow

analysis, forecast collections, and monitor underwriting requirements. In addition, MicroStrategy’s

reporting capabilities enable healthcare organizations to meet statutory reporting requirements and

ensure accountability from financial analysts to business unit management, executives, and directors.

Financial reporting is essential for healthcare organizations – to meet statutory requirements, but also to create greater

transparency within the organization at the executive level and other key roles in the company. MicroStrategy delivers financial

reporting from the same platform that enables advanced analysis, dashboards, and anomaly detection of enterprise-wide data.

Last Year This Year Annual Growth Rate (%)

Revenues

Net patient revenue $44,104 $49,705 12.7%

Other operating revenue $2,056 $2,360 14.8%

Total operating revenue $46,160 $52,065 12.8%

Operating expenses

Interest $1,397 $1,491 6.7%

Depreciation $2,563 $2,847 11.1%

Other operating expenses $41,315 $46,524 12.5%

Total operating expenses $43,315 $50,862 17.4%

Income (Loss)

Operating income $845 $1,126 33.3%

Nonoperating income $1,075 $1,147 6.7%

Extraordinary items -$47 -$79 68.8%

Excess of revenue over expenses $1,873 $2,194 17.1%

IncOME STATEMEnT ($000S)

• Accounts payable• Accounts receivable • Accrued expenses• Assets in current vs. prior period• Bad dept as percent of net revenue• Budget variance analysis• Capital expenditure growth rate• Cash and equivalents• Cash collected vs. target• Cash on hand• Outstanding claims receivables

• Current asset turnover• Current ratio• Customer plan migration• Net assets• Net income• Operating margin• Percent of capital expenses• Percent of cash flow to total debt• Percent of cash flow to total liabilities• Percent of charitable revenue• Percent of debt to capitalization

• Percent of in-patient capitated revenue• Percent of in-patient commercial revenue• Percent of in-patient HMO revenue• Percent of in-patient Medicaid revenue• Percent of in-patient revenue• Percent of in-patient self-pay revenue• Percent of out-patient Medicaid revenue• Percent of out-patient revenue

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Providers take advantage of MicroStrategy’s advanced analytical capabilities, analyzing an individual’s history and

risk profile to determine the likelihood of increased resource consumption based on information such as accelerated

use of healthcare services, co-morbidites, drug use, and patient demographics.

RISk AnAlySIS FOR PATIEnTS By AgE AnD BMI

Rel

ativ

e R

isk

Ages 25-59 Years Old Ages 60-69 Years Old Ages > 70 Years Old

4

3

2

1

0<18.5 >3518.5 to <25

Survey I Survey 2 Survey 3 Survey 4

25 to <30 30 to <35 <18.5 >3518.5 to <25 25 to <30 30 to <35 <18.5 >3518.5 to <25 25 to <30 30 to <35

BMI

QUAlITy PERFORMAncE AnD SAFETy AnAlySIS

Providing safe, quality care is a top priority for healthcare organizations. MicroStrategy allows

providers to improve performance by leveraging evidence-based performance data, tracking

variations in quality, providing patient dashboards, setting alerts, and checking drug interactions.

Providers use MicroStrategy to monitor the quality of their care according to the Health Plan

Employer Data and Information Set (HEDIS) standards established by the National Committee for

Quality Assurance to allow for performance comparisons across quality, patient access, patient

satisfaction, utilization, and financials. Additionally, MicroStrategy’s executive dashboards, a best

practice for improving quality at healthcare organizations, empower managers to make more timely

decisions and participate in on-the-spot quality improvements. MicroStrategy’s advanced analytics

also allow providers to identify the presence or absence of interventions recommended by evidence-

based medicine. For instance, more than 40,000 users at the European Medicines Agency, including

regulators, pharmaceutical companies, and healthcare professionals, use MicroStrategy to analyze

safety information for drugs before and after they are introduced to the market.

• Adherence• Compliance• Dose• Frequency of attacks• Handling costs• Length of stay• Length of visit with nurse practitioner• Length of visit with physician• Medication errors• Monthly drug cost• Number of emergency room visits

• Number of hospitalizations• Number of order sets• Number of patients admitted to emergency departments• Number of patients admitted to hospitals• Number of patients referred outside of the network• Number of patients with infections• Number of patients with vaccinations• Number of physicians’ visits• Packaging costs

• Patient satisfaction• Quality of life• Refills • Reliability• Severity of attacks• Usability• Utilization rate• Validity• Wait Time

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Reporting on patient satisfaction supports the goal within healthcare organizations for increased accountability among

healthcare providers, and it can also be leveraged for marketing purposes. Users from Marketing and Specialized Care

Services find value in accessing key performance indicators on Patient Satisfaction from MicroStrategy reports and

dashboards over an easy-to-use Web interface.

MARkETIng AnAlySIS

As patients become more knowledgeable with more information available to them, healthcare

providers must place a greater focus on their marketing efforts to stay competitive. Providers use

MicroStrategy to analyze the success of marketing efforts designed to demonstrate the clinical

effectiveness of their products and services, create an increased feeling of overall wellness, and

reduce workplace absenteeism. MicroStrategy’s advanced analytics also allow providers to determine

the most cost-effective marketing techniques by tracking campaign costs against budget, calculating

the return on investment for campaigns, and comparing performance against goals. In addition,

MicroStrategy’s integrated reporting and analysis architecture allows healthcare providers to use

dashboards to show which products and services are profitable in specific patient segments and

measure how their marketing efforts and corporate communications alter brand perception and

affect brand performance.

PATIEnT SATISFAcTIOn By HOSPITAl, BASED On RATIngS FOR SERVIcES REcEIVED

Perc

ent

of

Pati

ents

Hospital 1 Hospital 2 Hospital 3 Hospital 4 Hospital 5

Fair or Poor

Good

Excellent orVery Good

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

• Acquisition• Advertising budget per procedure• Average visit length to Website• Brand management• Churn analysis• Customer profitability• Customer scorecards

• Customer segmentation• Demographic analysis• Loyalty programs• Market share by business• Market share by customer• Market share by patient• Marketing focus group scores

• Number of visits to Website• Patient satisfaction• Physician practices• Preferences and permissions bundling• Retention• Service and transaction history

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clAIMS AnAlySIS

By analyzing and monitoring claims, business intelligence can help healthcare providers and payers

determine the biggest risk areas and devise the most effective rate structures. Properly managing

claims information also allows healthcare organizations and payers to optimize pricing, improve

response time to claims, and thwart fraudulent claims. MicroStrategy’s advanced analytical

capabilities offer predictive analysis that enables healthcare organizations to analyze risk across

the network, detecting anomalies tied to errors or fraudulent claims, increasing predictability

of claims-payment flows, and identifying loss potentials for specific geographical areas. In addition,

MicroStrategy software is used for call center solutions, with analysis down to the individual call detail

record, helping ensure high levels of patient support while controlling costs. Claims administrators

use MicroStrategy to monitor for deliberate deceit by providers seeking payment for services not

actually rendered or by beneficiaries claiming program eligibility. In addition, MicroStrategy’s bullet-

proof security protects sensitive provider and patient information as required by law.

clAIMS cOST MODEl By BEnEFIT cATEgORy

Benefit Category Utilization Units Average Billed

Charge

Average Allowed Charge

% Discount Off Billed

Hospital

Hospital Inpatient

Medical / Surgical 76,347 Days $ 9,249 $ 2,447 73.5%

Psychiatric & Alchohol & Drug Abuse 7,904 Days $ 1,889 $ 726 61.5%

Skilled Nursing Facility 2,402 Days $ 877 $ 441 49.7%

Maternity 12,290 Days $ 5,358 $ 1,470 72.6%

Hospital Inpatient Subtotal 98,943 $ 7,975 $ 2,139 73.2%

Hospital Outpatient

Emergency Room 41,042 Cases $ 1,472 $ 460 68.7%

Surgery 34,838 Cases $ 6,344 $ 1,615 74.5%

Radiology 121,232 Services $ 755 $ 298 60.5%

Pathology 494,786 Services $ 75 $ 28 61.4%

Cardiovascular 12,738 Services $ 659 $ 217 67.0%

PT / OT / ST 70,422 Services $ 161 $ 69 57.3%

Other 52,502 Services $ 506 $ 241 52.2%

Cardiac Rehab 3,758 Services $ 189 $ 123 34.7%

Dialysis 9,441 Services $ 797 $ 274 65.6%

OP Psych Facility 5,999 Services $ 346 $ 212 38.7%

Blood / Pharmacy 30,757 Services $ 530 $ 240 54.6%

Maternity Non-Deliveries 1,803 Services $ 555 $ 290 47.8%

Hospital Outpatient Subtotal 879,318 $ 550 $ 179 67.3%

Even the most novice users

are able to run claims

reports easily and begin

to perform simple analysis

with MicroStrategy. More

advanced claims analysis can

yield insights into preventive

treatments and improved

quality of life, such as a

recent analysis that found

correlations between disability

claims and depression.

• Allowable charges• Amount of reimbursements• Average length of stay• Average paid per admission• Balance• Benefits paid as percent of allowable• Call times• Call volumes

• Complaint logs• Co-pay• Enrollment• Inpatient paid per employee• Inpatient paid per member• Number of reimbursements• Opt-outs• Outpatient paid per employee

• Outpatient paid per member• Percent of first-time accurate claims• Percent of fraudulent claims• Percent paid out-of-network• Plan comparison• Prescription utilization• Response times• Staff time spent on reviewing claims

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Last Year This Year

Ace Inhibitors 65% 75%

Beta Blockers 72% 82%

Glycated Hemoglobin 71% 86%

Potassium 69% 83%

Anticoagulation 59% 71%

Mammography 76% 79%

clInIcAl DATA DASHBOARD

Physicians currentPeer currentPeer previous

Rec

eive

d T

reat

men

t

Rates

100%

80%

60%

40%

20%

0%

ACE Inhibitor Therapy in Congestive Heart Failure Increasing Adoption Rates of Proven Techniques

The MicroStrategy architecture provides a unified framework for clinical data analysis to facilitate information

sharing and collaboration. MicroStrategy’s Web interface is specifically designed for intuitive and convenient use

by users of all levels and is ideally suited for reaching individual practitioners accessing clinical data dashboards and

analysis over a secure extranet.

clInIcAl DATA AnAlySIS

Healthcare providers can improve clinical quality and resource utilization by effectively monitoring

and measuring clinical performance and outcomes data. By delivering analysis from multiple sources

at once, MicroStrategy enables organizations to track large amounts of information stemming

from clinical activities and identify the most efficient practices. MicroStrategy’s in-depth analytical

capabilities also help providers identify trends and anomalies, and analyze risk in clinical care.

Furthermore, physicians, hospitals, and healthcare organizations are discovering that they cannot

provide the best care by operating autonomously as independent silos. With MicroStrategy, all

constituents can work from the same data over a secure extranet with information personalized

based on security credentials. MicroStrategy’s unique centralized administration and bullet-proof

security assure that healthcare providers have industry-leading security measures at every layer of

the architecture. With secure, essential clinical information, individual practitioners can diagnose

and prescribe more quickly and provide top quality care with greater peace of mind.

• Average cost per case• Clinical outcomes• Cost and clinical data• Cost effectiveness• Disease management• In-patient admission rates• Investment in research programs• Number of procedures vs. benchmark

• Patient safety and staffing• Performance reporting • Population risk• Resource consumption vs. benchmark• Response times• Treatments

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Wait times between referral from a general practitioner and treatment, particularly for specialties with high mortalities,

are a metric of key concern to hospitals. MicroStrategy provides an easy-to-use Web interface with integrated

reporting and analysis, enabling analysts to drill from a graph on wait times immediately into underlying drivers.

PATIEnT cARE AnAlySIS

Healthcare providers want to offer the highest-quality patient care in the most efficient way

possible with improved patient access to care. MicroStrategy enables the right people to access

the right information at the right time, delivering a single platform to healthcare providers for

sharing information with patients for better decision-making and connecting patients across

hospital, nursing home, physician office, and community social support settings. By providing

easy, secure access to crucial information, MicroStrategy supports safe care delivery, assists

clinicians in evidence-based clinical decision-making, and facilitates seamless care coordination

across clinical settings. Providers use MicroStrategy to monitor and forecast patient diagnoses

and use of healthcare services in order to improve patient care, reduce wait times, and

administer more effective treatments. In addition, MicroStrategy’s foundation in relational OLAP

enables analysis of performance metrics to determine cause-and-effect relationships, providing

information that facilitates the best possible outcomes. By increasing information sharing with

patients and offering patients self-service functions, organizations using MicroStrategy allow

patients to take ownership of their own care, leading to improved outcomes.

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• Attention to needs• Clinical outcomes• Days to next appointment• Dispatch request and monitoring• Interventions provided• Overall satisfaction with patient care

• Patient functionality • Patient wait time in admissions• Patient wait time in pharmacy• Percent care inpatient vs. outpatient• Questions reporting• Satisfaction with physical

• Service complaints • Service level agreement (SLA) reporting• Services performed• Timeliness of services• Trouble ticket resolution

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Healthcare organizations may start with a single application and evolve to enterprise-wide use of MicroStrategy for

all business intelligence needs. The above clinical reporting example shows how critical data on discharge planning

has relevancy for managers in other departments, including Operations Managers forecasting capacity and staffing

and Financial Managers projecting general and administrative expenses.

OPERATIOnAl PERFORMAncE AnD cOST MAnAgEMEnT

Healthcare organizations can respond to the intense pressure to cut costs by employing information

solutions that monitor opportunities to improve operations, spotlighting inefficient uses of resources

and unnecessary overhead costs. By providing a single view into data from clinical trials, accounting

systems, clinic management systems, and other enterprise data, MicroStrategy enables providers

to identify areas that are underperforming and need immediate action. In addition, with so much

emphasis on controlling costs, healthcare providers need to closely monitor expenditures and

determine the best allocation of funds. MicroStrategy’s in-depth analytical capabilities allow providers

to drill down into unusual costs, ascertain best practices of the most profitable business units,

and identify utilization patterns. MicroStrategy’s Web-based reports enable providers to measure

employee and physician performance and productivity, while dashboards allow them to track the

success of pay-for-performance initiatives.

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• Average daily census• Outpatient visits• Inpatient days• Cost of medications prescribed• Cost of procedures employed• Cycle times• Labor utilization• Supplies utilization

• Case mix adjusted utilization rate• Payer contract development vs. plan• Percent of board certified surgeons• Strategic skill rating• Percent of staff received Six Sigma training• Employee satisfaction survey• Employee productivity• Forecast capacity and staffing

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With healthcare spending representing an ever-increasing percent of the gross domestic product, and salaries and

benefits representing one of the most significant expenses incurred by companies, healthcare providers are on task to

optimize resource utilization and improve human capital management. MicroStrategy delivers integrated reporting

and analysis from a single platform with centralized administration and low overhead.

RESOURcE AnD HUMAn cAPITAl MAnAgEMEnT

Effective resource management is a key opportunity for healthcare providers to reduce costs and

increase efficiency. Healthcare organizations must ensure proper management of resources, including

personnel, equipment, supplies, and transportation. By monitoring inventory and managing supply

chains, MicroStrategy allows providers to eliminate waste, better allocate insufficient resources,

and make better decisions regarding supplier usage. In addition, labor costs are one of the largest

expenses for most healthcare organizations, making human capital management a critical application

of business intelligence in this industry. Healthcare organizations use MicroStrategy for strategic

analysis of compensation, performance benchmarks, workforce productivity, turnover and retention,

staffing and employee relations, and employee recruitment and development. A CFO at a specialty

healthcare organization has indicated that using MicroStrategy has improved their internal resource

utilization and helped save millions of dollars.

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• Advertising costs• Cost of hires by source• FTE utilization• Number of new hires per day• Number of online job applications• Number of physician FTEs• Number of pre-qualified candidates• Number of requisitions

• Outside labor as percent of total• Overtime costs• Part-time FTEs as percent of total FTEs• Percent of positions filled by on- site vs. off-site recruiters• Percent of voluntary staff turnover• Replacement viability• Return on sourcing

• Salaries and benefits• Search fees• Staff satisfaction• Time-to-fill (or time-to-hire)• Turnover per manager• Turnover per tenure• Vacancy rate• Weekly payroll

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healthcare organization snapshots

TRAckIng SAlES AnD MARkETIng TREnDS AT HEnRy ScHEIn, Inc.

Henry Schein, Inc. is using MicroStrategy to gain better insight into its sales and marketing operations.

With the technology, New York-based Henry Schein is able to track sales of its more than 80,000

products and analyze buying trends across its customer base. Currently, Henry Schein employees are

able to perform sales and marketing analyses against a centralized IBM DB2 data warehouse. End

users can, for example, track the performance of a prior sales promotion or analyze the buying trends

of a particular product on a given day to determine who is buying what items and at what times.

“MicroStrategy is the platform upon which the entire company is accessing product, customer, and

sales information. The crux of our business is our customers and our products, and MicroStrategy

enables Henry Schein to track sales over time for all of our medical, dental, and veterinary products.

We selected MicroStrategy for its platform’s superior analytics, flexibility, and impressive information

delivery capabilities. Thus far, we have received excellent feedback from our end-user community.”

– Henry Schein, Inc.

STATISTIcAl AnAlySIS AnD REPORTIng AT cAncER cARE OnTARIO

Cancer Care Ontario is an umbrella organization, and an agency of the Ontario Ministry of Health

and Long-Term Care, that steers and coordinates Ontario’s cancer services and prevention efforts.

As the provincial government’s chief cancer advisor, Cancer Care Ontario directs over $500-million in

public health care funding for cancer prevention, detection and care. The agency also operates

research, screening and prevention programs; collects, monitors and reports information about

cancer and cancer system performance; develops evidence-based standards and guidelines for

health care providers; and works with regional providers to plan and improve cancer services.

As part of CCO’s information management strategy, an Enterprise Data Warehouse (EDW), and a

unique Web-based analytic component, iPort™, were created using MicroStrategy 8.0, to provide

instant, reliable cancer information to cancer planners, managers and policy makers.

Today, iPort™ provides electronic population data and provincial and region-based cancer

surveillance statistics and cancer services delivery. The EDW contains historic, current and year

2020 projected incidence, prevalence, mortality and survival data, as well as historic and current

monthly radiation, systemic services and cancer surgery treatment activity at Regional Cancer

Centres and hospitals across the province. When fully developed, the EDW and iPort™ will

provide “one window” access to authoritative information about every aspect of the cancer

continuum from prevention through to palliative care.

Currently rolled out to more than 200 cancer planners, managers, and other healthcare providers

in Ontario, iPort™ enables these end users to view existing high level reports, or to create their

own detailed reports using the comprehensive BI technology provided through MicroStrategy.

While the majority of CCO’s users work with iPort™ over the Web, CCO’s internal Informatics

team uses the MicroStrategy Desktop to create more complex reports for other data users not as

comfortable with using the software themselves, or who may not have access. “The introduction

of iPort™ has changed the way that CCO gathers, stores, manages, and disseminates information

in a highly positive way, empowering users to get the data they need quickly and easily.”

– cancer care Ontario BU

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SElF-SERVIcE ExTRAnET REPORTIng AT PMSI-TMESyS

PMSI-Tmesys, one of the nation’s leading workers’ compensation service providers, selected

MicroStrategy to support its Web portal that provides timely, self-service reporting capabilities for

its clients. PMSI-Tmesys expected more than 5,000 workers’ compensation claims professional

clients to use the Web portal in the first year. With the portal, PMSI-Tmesys clients can generate

user-friendly reports on medications prescribed to a particular claimant, top-prescribed drugs, top-

dispensing pharmacies, and payer-specific savings, among other criteria. Using MicroStrategy, the

users have the flexibility to drill down into the data, analyze it, export it, customize it, and present

it in a number of different ways. In addition, different types of reports are available to different

job functions as set by PMSI-Tmesys’ clients.

“We selected MicroStrategy because of its exceptional scalability, core reporting, and analytic

functionality. MicroStrategy positions us to provide better quality and more timely information to

our clients, giving them critical insights to make analytically based decisions.”

– PMSI-Tmesys

IMPROVIng PERFORMAncE AnD HIgH QUAlITy HEAlTHcARE AT PREMIER, Inc.

The MicroStrategy Business Intelligence Platform is providing critical support for an important

project between Premier, Inc., and the U.S. Department of Health & Human Services (HHS) to

improve hospital performance nationwide. Premier, Inc. is a strategic U.S. healthcare alliance

owned by 200 of the nation’s leading not-for-profit hospitals and healthcare systems.

MicroStrategy’s platform supports Premier’s data applications, helping its healthcare system

clients make informed decisions on clinical quality and patient safety, business and market

strategy, clinical resource utilization, operational performance, and productivity. More than 400

of Premier’s clients use the MicroStrategy platform through the Perspective Online tool to monitor

and measure their clinical and cost performance.

In 2003, the U.S. announced a new joint project between the Centers for Medicare & Medicaid

Services (CMS) and Premier to use financial incentives to encourage hospitals to continuously

improve the quality of their in-patient care. Hospitals that participate in the project are eligible for

increased Medicare payments for delivering high-quality care to patients who are being treated

for specific clinical conditions.

“MicroStrategy’s business intelligence software supports this important demonstration project and

the ongoing applications we need. Premier has spent many years establishing a capability on a

scale required for this project, as well as our clients’ needs. We rely on many partners, including

MicroStrategy, to help us create a comprehensive solution for the industry.”

– Premier, Inc.

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Business Intelligence and Healthcare

MicroStrategy: The Choice of Leading Healthcare

Organizations

At MicroStrategy, we are fully dedicated to helping healthcare providers stay competitive in a

challenging industry. We believe that business intelligence properly applied to enterprise data

provides healthcare organizations with the insight they need to increase revenue, reduce costs,

and comply with industry regulations and standards.

Today, nine of the top ten Fortune 500 healthcare and pharmaceutical companies rely on

MicroStrategy’s business intelligence architecture for their reporting, analysis, and monitoring of

wide-ranging healthcare data. MicroStrategy’s unified architecture offers healthcare providers

far-reaching opportunities for ever-expanding business intelligence. Whether starting with

one or several applications, healthcare providers can evolve to utilize MicroStrategy’s unique

competencies: an easy-to-use unified Web interface with extranet and intranet capabilities, access

for thousands of users, reporting and analysis of tremendous amounts of data across multiple

sources, graphical dashboards and boardroom-quality reports, unconstrained analytical flexibility,

and industry-leading security architecture.

With the increasing challenges the healthcare industry is facing, providers need to stay one step

ahead of the competition. MicroStrategy equips healthcare organizations with the tools they

need to make the best use of the vast amounts of information available to them, allowing them

to operate more efficiently and improve patients’ well-being. At MicroStrategy, we are committed

to helping your organization increase its competitive advantage by devising smart business

solutions and making better business decisions every day.

All Contents Copyright © 2007 MicroStrategy Incorporated. All Rights Reserved.

MicroStrategy, MicroStrategy 6, MicroStrategy 7, MicroStrategy 7i, MicroStrategy 7i Evaluation Edition, MicroStrategy 7i Olap Services, MicroStrategy 8, MicroStrategy Evaluation Edition, MicroStrategy Administrator, MicroStrategy Agent, MicroStrategy Architect, MicroStrategy BI Developer Kit, MicroStrategy Broadcast Server, MicroStrategy Broadcaster, MicroStrategy Broadcaster Server, MicroStrategy Business Intelligence Platform, MicroStrategy Consulting, MicroStrategy CRM Applications, MicroStrategy Customer Analyzer, MicroStrategy Desktop, MicroStrategy Desktop Analyst, MicroStrategy Desktop Designer, MicroStrategy eCRM 7, MicroStrategy Education, MicroStrategy eTrainer, MicroStrategy Executive, MicroStrategy Infocenter, MicroStrategy Intelligence Server, MicroStrategy Intelligence Server Universal Edition, MicroStrategy MDX Adapter, MicroStrategy Narrowcast Server, MicroStrategy Objects, MicroStrategy OLAP Provider, MicroStrategy SDK, MicroStrategy Support, MicroStrategy Telecaster, MicroStrategy Transactor, MicroStrategy Web, MicroStrategy Web Business Analyzer, MicroStrategy World, Alarm, Alarm.com, Alert.com, Angel, Angel.com, Application Development and Sophisticated Analysis, Best In Business Intelligence, Centralized Application Management, Changing The Way Government Looks At Information, DSSArchitect, DSS Broadcaster, DSS Broadcaster Server, DSS Office, DSSServer, DSS Subscriber, DSS Telecaster, DSSWeb, eBroadcaster, eCaster, eStrategy, eTelecaster, Information Like Water, Insight Is Everything, Intelligence Through Every Phone, Your Telephone Just Got Smarter, Intelligence To Every Decision Maker, Intelligent E-Business, IWAPU, Personal Intelligence Network, Personalized Intelligence Portal, Query Tone, Quickstrike, Rapid Application Development, Strategy.com, Telepath, Telepath Intelligence, Telepath Intelligence (and Design), The E-Business Intelligence Platform, The Foundation For Intelligent E-Business, The Integrated Business Intelligence Platform Built For The Enterprise, The Intelligence Company, The Platform For Intelligent E-Business, The Power Of Intelligent eBusiness, The Power Of Intelligent E-Business, The Scalable Business Intelligence Platform Built For The Internet, Industrial-Strength Business Intelligence, Office Intelligence, MicroStrategy Office, MicroStrategy Report Services, MicroStrategy Web MMT, MicroStrategy Web Services and Pixel Perfect are all registered trademarks or trademarks of MicroStrategy Incorporated.

All other products are trademarks of their respective holders. Specifications subject to change without notice. MicroStrategy is not responsible for errors or omissions. MicroStrategy makes no warranties or commitments concerning the availability of future products or versions that may be planned or under development.

This product is patented. One or more of the following patents may apply to the product sold herein: U.S. Patent Nos. 6,154,766, 6,173,310, 6,260,050, 6,263,051, 6,269,393, 6,279,033, 6,501,832, 6,567,796, 6,587,547, 6,606,596, 6,658,093, 6,658,432, 6,662,195, 6,671,715, 6,691,100, 6,694,316, 6,697,808, 6,704,723, 6,707,889, 6,741,980, 6,765,997, 6,768,788, 6,772,137, 6,788,768, 6,792,086, 6,798,867, 6,801,910, 6,820,073, 6,829,334, 6,836,537, 6,850,603, 6,859,798, 6,873,693, 6,885,734, 6,888,929, 6,895,084, 6,940,953, 6,964,012, 6,977,992, 6,996,568, 6,996,569, 7,003,512, 7,010,518, 7,016,480, 7,020,251, 7,039,165, 7,082,422, 7,113,993, 7,127,403 and 7,174,349. Other patent applications are pending.

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