Driving Forces of HIE/HIO Growth

Health Information Exchanges/Organizations (HIE/HIO) started off with a slow-go; in its many forms, State-run, regionally-run, and proprietarily-owned, the industry didn’t quite know where to start, but now HIEs are starting to pick up speed at last.

Virtually all HIOs have an answer as to how they will financially sustain their organization, and according to HIMSS14 speaker John Kansky, there are three major drivers changing these plans:

  • ACOs and payment reform
  • Meaningful Use Stage 2
  • Growth

ACO contracting shifts the risk between stakeholders in the healthcare system, and changes how they value data and information that HIOs can provide.

The pursuit of MU2 by hospitals and physician groups has been the dominant driver of new HIE activity in recent years.  While MU2 has created new opportunities, it has also moderated HIE innovation by defining the focus of information collection and measurement.

Many factors are conspiring to allow HIOs to be successful and to grow in size and sophistication, but with growth comes complexity and other challenges.  However, larger HIOs also have ways to produce value and reduce costs that are not open to smaller HIOs.

Regardless of the drivers, HIOs must sustain their organizations in a changing healthcare marketplace.  Kansky challenges all healthcare entities to come up with creative tactics to support HIT financial sustainability.

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