BUSINESS ANALYTICS FOR HEALTHCARE COST OPTIMIZATION: A DATA-DRIVEN STUDY ON IMPROVING FINANCIAL SUSTAINABILITY IN HEALTHCARE SYSTEMS

Abstract

High-tech medical technologies, chronic disease epidemics, and limited workforce and resources following the Covid-19 pandemic are driving up financial pressures on healthcare systems, particularly in this context of ageing populations. This has led to the focus on cost optimisation being one of the key points for the healthcare managers and policy makers. This article looks at business analytics's role in cost control and strengthening the financial sustainability of healthcare systems. This study is a secondary study, and adopts a desk based method of research with evidence drawn from international health expenditure reports, the academic literature, healthcare analytics studies, and policy documents and case examples of healthcare systems. The article looks at the key drivers behind the cost of the health care system, including hospital readmissions, emergency demand, workforce costs, long waiting times, inefficient resource use and procurement waste and sub-optimal preventive care. It discusses the advantages of descriptive analytics to improve cost visibility, the advantage of predictive analytics and anticipating demand and financial risk, and the potential contribution of prescriptive analytics to staffing, patient flow, procurement and resource allocation decisions. The discussion also includes the impact of analytics to minimize avoidable readmissions and maximize workforce and supply chain efficiency. The article shows that soundly based on data, well integrated systems, ethical governance, and personnel capability, business analytics can play a significant role in supporting financial sustainability, but only when there is a strong focus on patient outcomes.