[EN] IBM acquires Truven Health Analytics for $2.6 billion
Type of data Truven brings to Watson Health
Truven tracks cost, claims and quality data in health care. In addition, Truven has methodologies and algorithms to track healthcare costs and quality.
IBM's plan is to integrate Truven's data into its Watson Health Cloud to deliver what Big Blue calls "insights as a service." IBM is aiming to acquire enough data and technology to track health from single-individual level to population level.
More importantly, Truven brings a bevy of customers to the Watson Health roster. Truven provides cloud-based healthcare data to 8,500 customers ranging from hospitals to insurers to life sciences companies. Truven has 25 of the top 25 pharmaceutical companies as customers.
Truven's flagship product is called Advantage Suite, which targets employer, government and health plan customers. Another product called ActionOI is focused on operational performance at providers.
IBM bought Phytel, Explorys and Merge Healthcare before Truven.
IBM Building One of the World’s Largest and Most Diverse Repositories of Health-Related Data
Armonk, NY and Ann Arbor, Michigan - 18 Feb 2016: IBM Watson Health today announced plans to acquire Truven Health Analytics, a leading provider of cloud-based healthcare data, analytics and insights for $2.6 billion. Truven will bring more than 8,500 clients, including U.S. federal and state government agencies, employers, health plans, hospitals, clinicians and life sciences companies to the IBM Watson Health portfolio.
Upon completion of the acquisition, IBM’s health cloud will house one of the world’s largest and most diverse collections of health-related data, representing an aggregate of approximately 300 million patient lives acquired from three companies1. IBM plans to integrate Truven’s extensive cloud-based data set spanning hundreds of different types of cost, claims, quality and outcomes information with its existing data sets.
Through the Watson Health Cloud, healthcare organizations will be able to take previously disparate data sets, including vast amounts of unstructured data, and combine them together to create unique insights that help inform a broad range of health decisions.
Truven Health Analytics represents IBM’s fourth major health-data related acquisition since launching the Watson Health unit in April 2015. Upon close, IBM will have invested more than $4 billion to acquire and build an unparalleled array of cognitive healthcare capabilities intended to help professionals improve health outcomes, control costs, and advance value-based care solutions.
Data and insights from Truven inform benefit decisions for one in three Americans. Upon close, the acquisition of Truven will bolster Watson Health’s global talent footprint to more than 5,000 employees, including hundreds of clinicians, epidemiologists, statisticians, healthcare administrators, policy experts and healthcare consultants who will join the IBM business unit. Truven’s cloud-based technology, methodologies and health claims data will be integrated into the Watson Health Cloud over time.
"With this acquisition, IBM will be one of the world’s leading health data, analytics and insights companies, and the only one that can deliver the unique cognitive capabilities of the Watson platform,” said Deborah DiSanzo, general manager for IBM Watson Health. “Truven’s impressive team, extensive client roster, and expansive data sets complement Watson Health's broad-based team, capabilities and offerings. Together, we’re well positioned to scale globally and to build first-in-class offerings designed to help our clients apply cognitive insights in a value-based care environment.”
“The Truven Health Analytics team is eager to combine our capabilities and expertise with the Watson Health portfolio,” said Mike Boswood, President and CEO, Truven Health Analytics. “This will help catapult the industry forward to transform healthcare and to save and improve lives.”
The deal is projected to close later this year, subject to satisfaction of customary closing conditions and applicable regulatory reviews.
Watson Health Offerings Optimized for Value-Based Care
Value-based care is an emerging healthcare model that aims to improve the quality of care while controlling costs and driving better near- and long-term health outcomes for individuals. While traditional health systems have paid for volume based on a fee-for-service model, value-based care models use payment incentives that aim to advance quality outcomes at lower cost. This payment model requires that providers, payers and other stakeholders have evidence — data and insight — to document how specific elements of care contribute to achieving a target health outcome for a given cost.
Watson Health offerings will be optimized to help clients succeed in this environment by helping them achieve better patient outcomes at reduced cost through advanced analytics and actionable insights.
Truven Health Analytics is IBM’s fourth major health-related acquisition since launching its Watson Health unit in April 2015, following Phytel (population health), Explorys (cloud-based healthcare intelligence) and Merge Healthcare (medical imaging). In that time, Watson Health also has quickly compiled a marquee roster of partners and clients, including Apple, Medtronic, Johnson & Johnson, Novo Nordisk, and CVS Health.
Truven Health Analytics is headquartered in Ann Arbor, Michigan, with offices in Denver, Chica-go, Raleigh-Durham, and a center in India. Upon completion, IBM will purchase Truven from its current owner Veritas Capital.
About Truven Health Analytics
Truven Health Analytics delivers the answers that clients need to improve healthcare quality and access while reducing costs. We provide market-leading performance improvement solutions built on data integrity, advanced analytics, and domain expertise. For more than 40 years, our insights and solutions have been providing hospitals and clinicians, employers and health plans, state and federal government agencies, life sciences companies, and policymakers the facts they need to make confident decisions that directly affect the health and well-being of people and organizations in the U.S. and around the world. Truven Health Analytics owns some of the most trusted brands in healthcare, such as MarketScan®, 100 Top Hospitals®, Advantage Suite®, Micromedex®, Simpler, ActionOI® and JWA. Truven has its principal offices in Ann Arbor, Mich.; Chicago; and Denver. For more information, please visit truvenhealth.com.
About IBM Watson Health
Watson is the first commercially available cognitive computing capability representing a new era in computing. The system, delivered through the cloud, analyzes high volumes of data, understands complex questions posed in natural language, and proposes evidence-based answers. Watson continuously learns, gaining in value and knowledge over time, from previous interactions. In April 2015, the company launched IBM Watson Health and the Watson Health Cloud platform. The new unit will help improve the ability of doctors, researchers and insurers to innovate by surfacing insights from the massive amount of personal health data being created and shared daily. The Watson Health Cloud allows this information to be de-identified, shared and combined with a dynamic and constantly growing aggregated view of clinical, research and social health data. For more information on IBM Watson, visit: ibm.com/watson. For more information on IBM Watson Health, visit: ibm.com/watsonhealth.
Are Patients Concerned with Their Healthcare Data Security?
Over 90 percent of consumers worry about their privacy online and avoid companies that digitally collect their personal information.
74% of consumers trust hospitals with healthcare data security and keeping their personal information safe.
February 02, 2016
Despite increasing healthcare data security concerns, consumers appear to trust the healthcare industry with their personal information the most compared to other industries.
According to a report from TRUSTe and the National Cybersecurity Alliance, 74 percent of consumers trust their personal information with healthcare providers. This speaks volumes considering how little trust consumers have with their personal information on online networks.
Over 90 percent of consumers worry about their privacy online and avoid companies that digitally collect their personal information. Only 30 percent understand the inner workings of cybersecurity and how companies protect private consumer information.
It is therefore surprising that so many consumers reported trust in their healthcare providers. When visiting their providers, consumers have to disclose a considerable amount of personal information, including sensitive items such as Social Security numbers and personal health information.
It is also well-documented that cybercriminals see health information as an appealing target. Because they contain the sensitive information listed above, they are a prime target for thieves.
It is also surprising that so many consumers trust healthcare providers considering the high volume of cybercrime that has occurred just within the past year.
According to a Bitglass report, 98 percent of healthcare data breaches in 2015 were caused by hacking and cybersecurity issues. In fact, the top 10 largest healthcare data breaches in 2015 were results of hacking, and compromised a near total of 100 million breached records.
Large-scale health data breaches, which attracted national headlines and great consumer attention, were also results of cybercrime. Breaches like those that occurred at Premera Blue Cross or the Anthem breach are particular causes for concern amongst healthcare consumers.
Given all of these recent healthcare cybersecurity issues, it may be clear that healthcare data security still needs to be a high priority, regardless of patient trust.
“Consumer privacy concern is real and rising and businesses need to act now to rebuild trust with their customers before it hurts the bottom line through lost clicks, downloads and sales,” said TRUSTe CEO Chris Babel. “With 3 out of 4 Americans who worry about their privacy modifying their online activity last year due to privacy concerns this research shows privacy is not just good practice it is simply good business.”
The report finds that consumers might feel more secure if given more ownership over this personal information. Thirty-five percent of consumers agreed that increasing transparency in consumer information handling and having easy-to-use information protection tools available are two ways providers and businesses can increase consumer trust.
Almost half of respondents also reported wanting access to their personal information and the type of information collected.
Other studies confirm that. In a recent Pew Research study, patients said that health information sharing over secure networks would depend on various parameters, such as the kind of information being shared or the kinds of regulations the network met.
“It depends on exactly what records are shared,” one of the respondents said. “It would have to be a very secure site for me to trust it. Scheduling appointments online wouldn’t bother me though.”
Patients also reported that health information sharing over a secure network would depend on who could access the information. While some were fine with access being limited to only themselves and their physicians, others were concerned that may not be maintained and were not comfortable with the risk of an outsider accessing the data.
“My health records are confidential,” one patient said. “I don’t want them in the hands of someone unscrupulous or marketing companies possibly trying to recommend a drug or something based on a condition I may have.”
Going forward, healthcare organizations will have to continue to reinforce their cybersecurity and healthcare data security if they want to maintain the trust of their patients. Higher investments in security methods, as well as initiatives to facilitate patient access and control over their health records have the potential to increase patient-provider trust.