3 key perspectives on artificial intelligence solutions to healthcare
In order for a project to generate returns it must generate value. In the long run this value needs to reach the end consumer, which in Lytics case is the patient. Lytics was founded on the basis of helping patients, which has meant a clear focus on generating value for patients ever since our beginning. This is what we believe has enabled and continues to enable our success as a company.
Lytics is able to generate value for patients in both direct and indirect ways. Predicting and preventing a hospital visit or empowering a chronic care patient to better manage the disease are two examples of direct benefits that deliver value to the patients. Indirect benefits instead include things such as lowering cost of care to a patient cohort, which in turn generates a value for our partners meaning more patients can be provided with care. Lastly, Lytics technology contributes to making medical devices more accurate which equals a healthier patient in the long run.
In regards to the patient perspective, it is worth noting that we do not necessarily need to be the interface to the patient; in fact we often provide the backbone of the analytics conveyed by a compelling user interface from one of our partners.
Lytics believe a focus on ensuring the end user, the patient, is delivered value is the best way to ensure a project will be successful and sustainable from an economic point of view. When breaking down the ways in which the patient is delivered value, we are able to derive the ways in which our products generate an economic benefit. Through implementing our technology within health clinics throughout the US we have been able to arrive at the potential cost saving per patient our technology enables. When implementing the technology, two patient groups were compared, one treated through the use of Lytics technology and one without. We find that our products lead to lower hospitalization rates with a lower average number of days in the hospital per patient. Which leads to lower hospitalization costs and lower penalties in the form of a higher sum of money received from the government due lower hospitalization rates. This is the case, since the US government pays the health clinics a lump sum of money for taking care of state ensured individuals. The study indicated a predicted savings for the health care clinics of somewhere north of 10000 USD per patient and year. Alongside this Lytics technology enables healthcare professionals to focus their time on the patients truly in need of help, as dictated by the predictions made through Lytics technology. Whilst this is not included in the above calculation, this also leads to cost savings for the health care clinics.
Alongside the cost savings generated by Lytics technology, costs of implementation are also an important factor in determining the economic benefits we are able to deliver. In Lytics case it becomes important to consider fixed and variable costs. Lytics has a relatively low degree of variable costs, defined as costs attributed to implementing the technology within a new field of diseases. This due to the fact that Lytics partly is a cloud based company with dynamic algorithms used to make the predictions. This allows us to apply our technology to new diseases relatively smoothly, something that is highly beneficial within the industry. In regards to the fixed costs, whilst higher than variable costs, they are partially lowered due to the fact that Lytics is a cloud based company.
Central to AI solutions in healthcare is the technological perspective. Is the proposition a big data project. For Lytics, the value lies in the potential extraction of data with opportunity to provide better solutions. Which is why getting an overview of the data and ensuring it is sufficient is at the forefront of our minds at all times.
Whilst big data projects can add tremendous value to an organization or patients in the form of streamlined processes, higher quality, better care etc. there are reasons to be careful too. What many disregard when venturing into big data projects is the high failure rate. Insufficient data, too few patients, corrupt data, clouded purpose; organization not being prepared to change and adopt new ways of working are some of the pitfalls. Therefore, Lytics employs a strict due diligence procedure to ensure collaboration with other parties is worthwhile for the both of us. In the process we make sure the data is plentiful and has predictive powers and there is value in the work. The due diligence procedure is also a great way for the partnering organization to get aligned internally and prepare for the new ways of working.
The overall process when companies work with Lytics can be seen as playing out in the following way. After the due diligence is completed the full data pilot is carried out, in which all aspects of the data are analysed. The results from the pilot are then discussed in a seminar where the domain specialists contribute with their expertise. Alongside this business representatives make sure the business case is still solid. The seminar typically results in a refined solution and a couple of new parameters. Then the scope of work is locked and the crafting of the final solution takes place during the build period. When the solution is finished the quality assurance and regulatory approval takes place. Finally the solution starts its life and can contribute to a better life for patients.