Analytics August 28, 2023

Achieve Value Optimization by Effectively Leveraging Analytics

by Barry P Chaiken, MD
Dr. Chaiken explores using embedded analytics for value optimization.

(Download a PDF of this document)

In an era where data is often referred to as the “new oil,” the ability to harness its power effectively is crucial for organizations across various sectors. Embedded analytics and value optimization have emerged as pivotal tools, offering a robust framework for real-time decision-making and efficient resource allocation. These tools are particularly relevant in today’s fast-paced, data-driven landscape, where the demand for actionable insights is ever-increasing.

Embedded analytics integrates analytical capabilities within business applications, systems, or processes. Unlike standalone analytics platforms, embedded analytics provides real-time insights directly within the user interface of the tools professionals already use. This seamless integration allows immediate data interpretation and action, reducing the latency often associated with traditional analytics platforms.

Value optimization is not merely about reducing costs; it is a strategic approach focusing on maximizing business value while minimizing wasteful expenditures.

According to Gartner, a 360-degree approach to value optimization involves applying the 80/20 principle, where organizations should concentrate their efforts on the critical 20% of activities that produce 80% of the business value. This approach enables organizations to avoid spending on work of marginal value, optimizing costs and outcomes.

For example, in healthcare IT, value optimization can evolve an organization from a traditional “keeping the lights on” role – maintaining the electronic health record (EHR) – to that of an enterprise process and information architect. This shift allows the organization to focus on business outcomes, such as leveraging data for strategic clinical initiatives rather than just essential IT services.

Organizations can balance cost efficiency and quality by adopting a holistic approach to value optimization, maximizing return on investment (ROI), and enhancing stakeholder satisfaction.

Importance of Embedded Analytics

One of embedded analytics’s most compelling advantages is its real-time decision-making capacity. In healthcare, embedded analytics within the EHR provides clinicians with immediate insights into patient conditions, enabling timely interventions. These quick decisions are particularly crucial in scenarios such as emergency care, the treatment of chronic disease, and the management of patients on multiple medications for life-threatening illnesses. Real-time analytics can also be invaluable in population health management and public health initiatives, where rapid response to emerging situations, such as outbreaks, is essential.

Embedded analytics significantly improves the user experience by providing actionable insights directly within the applications or platforms with which users are already engaged. In healthcare, physicians can trend patient results over time and adjust treatment at the point of care when necessary. This reduces the need for later follow-up or missed opportunities to change care therapies properly.

Data Democratization

Integrating analytics within existing systems facilitates data democratization, empowering all care team members to make data-driven decisions. This data sharing is essential in sectors like healthcare, where multi-disciplinary teams must collaborate for optimal patient outcomes. By making data more accessible and interpretable, embedded analytics fosters a culture of informed decision-making across all levels of an organization.

Cost Efficiency and Resource Allocation

Value optimization is intrinsically linked to cost efficiency. In healthcare, optimizing value could involve strategies to reduce hospital readmissions, often costly and indicative of suboptimal care. By leveraging data analytics, healthcare providers can identify patterns and risk factors that lead to readmissions, thereby implementing preventive measures that improve patient outcomes and reduce costs.

In healthcare, efficient resource allocation manifests as optimized inventory management, where real-time analytics help maintain just the right amount of stock to meet demand without incurring additional storage costs or dangerous stockouts. This balance is crucial for maximizing ROI and enhancing patient care.

Role of Predictive Analytics

Predictive analytics is revolutionizing the healthcare industry by enabling providers to anticipate patient needs, allocate resources more effectively, and improve the quality of care. Predictive analytics utilizes data-driven models to identify potential health risks before they escalate into serious problems. This is particularly valuable in emergency care, surgery, and intensive care settings, where quick reactions and timely decision-making can significantly impact patient outcomes.

The application of predictive analytics transcends clinical care. It also improves operational efficiency by predicting resource requirements, aiding in value optimization. For example, predictive analytics can notify providers when a patient’s risk factors indicate a high probability of readmission within a 30-day period, allowing healthcare systems to allocate resources for outpatient follow-up care more effectively. These notifications improve patient outcomes and have financial implications, as health systems can face penalties under programs like Medicare’s Hospital Readmissions Reduction Program (HRRP).

Moreover, predictive analytics is used to personalize treatments based on an individual’s medical history or genetic profile. It can also help manage high-risk patients, which is essential for improving quality and transitioning to value-based care. With machine learning and artificial intelligence, predictive analytics is becoming an increasingly sophisticated tool that can approximate the probability of various outcomes based on historical data. These predictions allow clinicians, financial analysts, and administrative personnel to make forward-thinking decisions.

Use Case: Sepsis

The management and outcomes of sepsis patients are of paramount importance. The Centers for Disease Control and Prevention (CDC) recently updated its core elements for hospital sepsis programs, which include hospital leadership commitment, accountability, multi-professional expertise, action, tracking, reporting, and education. Embedded analytics within EHR can be pivotal in enhancing these core elements.

For instance, a hospital in Massachusetts implemented embedded analytics in its EHR system to align with the CDC’s core elements for sepsis care. The analytics tool flagged high-risk patients for sepsis in real-time, aiding in recognizing sepsis as emphasized by the CDC. This real-time tracking and reporting facilitated the implementation of evidence-based management strategies, aligning with the ‘Action’ and ‘Tracking’ core elements.

The embedded analytics also supported the recovery of patients after sepsis by monitoring various health parameters and alerting healthcare providers for timely interventions. This improved patient outcomes and optimized value in terms of reduced hospital mortality, length of stay, and healthcare costs, consistent with the benefits observed in hospital quality improvement programs focused on sepsis.

By integrating embedded analytics into EHR systems, hospitals can significantly enhance their sepsis care programs, aligning them with the CDC’s guidelines and making them more effective in improving patient outcomes and optimizing healthcare costs.


Embedded analytics offers the advantage of real-time decision-making, enhanced user experience, and data democratization. At the same time, value optimization maximizes ROI through cost efficiency, resource allocation, and quality improvement. The synergy between these two concepts fosters a data-driven culture, enabling predictive analytics that further enhances performance and outcomes.

Embedded analytics and value optimization are not merely trends but essential strategies for organizations aiming to thrive in a data-driven landscape. Future research and development should leverage these tools for more personalized, efficient, and ethical solutions across all sectors.

I look forward to your thoughts, so please submit your comments in this post and subscribe to my weekly newsletter, “What’s Your Take?” on


  1. Centers for Disease Control and Prevention (CDC). “Core Elements of Hospital Sepsis Programs.” Accessed from CDC Website. -
  2. The 360-degree Approach to IT Cost and Value Optimization, Gartner, June 12, 2016,
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