1: Data Analytics

Accelerate the use of data analytics to identify opportunities to reduce government costs.

Other Information:

The federal government already collects and stores great quantities of data. Moving deliberately to match this data with the power of emerging analytical technologies provides new opportunities to create actionable information and insight to inform decision-making across federal programs. The information created can help expose operational inefficiencies and identify operational and programmatic redundancies. Gathering and analyzing data from a variety of internal and external sources can help determine performance and outcomes for federal programs. New data analytical technologies are particularly critical in the analysis of healthcare costs. By using structured and unstructured data in new combinations to provide actionable information and insight, the government -- both civilian and defense -- can discover ways to reduce costs in healthcare delivery and functional healthcare operations. The Centers for Medicare & Medicaid Services (CMS) exemplifies how the government can leverage IT through data analytics to reach higher levels of cost efficiencies. The potential savings from increased health intelligence is sizable: according to McKinsey Global Institute, "if US healthcare could use big data creatively and effectively to drive efficiency and quality, we estimate that the potential value from data in the sector could be more than $300 billion in value every year, two-thirds of which would be in the form of reducing national health care expenditures by about 8%." Approximately $70 billion is the federal portion of the total $300 billion.

Stakeholder(s):

• Centers for Medicare & Medicaid Services (CMS)


• McKinsey Global Institute

Objective(s):

1

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