Healthcare Analytics and Its Importance in The New Age

Healthcare Analytics

The Covid-19 pandemic changed the healthcare paradigm thrusting it toward accelerated digitisation. With an increase in remote healthcare and telehealth calls, analytics in the healthcare industry will soon be the future of enhancing quality and progressions. It is, therefore, necessary to dig deeper into what is healthcare analytics, the types of healthcare analytics in practice, and why healthcare analytics is important for the industry’s growth.

What is Healthcare Analytics?

In simple terms, Healthcare analytics refers to the collection and analysis of data in the healthcare sector that fosters development and the decision-making process through insights. These insights can range from diagnosis to treatments to efficiency of healthcare providers and give a fair idea of the potential health issues, costs involved, healthcare functioning, and the outcomes.

Healthcare analytics involves gathering data from both digital and real-time sources to record, evaluate, and apply them. Although analytics in healthcare can be a complex process, it can largely benefit the industry by reducing costs, demanding improved efficiency, measuring the key performance indicators (KPIs), and significantly augmenting cures.

Types of Healthcare Analytics

For the convenience of collection and analysing data in the healthcare sector, analytics in healthcare is broadly divided into four categories.


Descriptive analytics considers historical data, answering the questions about what happened, how and when it occurred, and how many were affected. It uses statistical channels like averages, percentages, counts, etc. Descriptive healthcare analytics can measure if the means are meeting the ends, i.e. if a particular practice results in suitable treatments.


Diagnostic analytics, simply put, answers the question- why it happened. This type of analytics focuses more on investigating the historical data to understand why something occurred. For instance, if remote healthcare patients have dropped in number, Diagnostic analytics will help understand the reasons behind the drop and measure them.


Predictive analytics allows pre-empting of a particular event, answering the question- what can happen next? It evaluates the existing data, uses KPIs and other indicators, and calculates future performances. From estimating the patient’s risk scores to identifying patients that need further care, Predictive analytics can play a crucial role in healthcare.


Prescriptive analytics takes over from predictive analytics and answers the question- what can be done to prevent something? It offers practitioners a comprehensive outlook to determine opportunities or challenges and foresight for timely measures. Prescriptive analytics can help improve efficiency and significantly enhance patient care.

Why is Healthcare Analytics Important?

Analytics in the healthcare field can prove beneficial not only to improve patient care but also as a tool to pre-empt possibilities by mapping historical data. Moreover, it offers operational ease to government entities, medical organisations, and insurance companies to help them customise patient care.

Another advantage of healthcare analytics is that it can help identify patients prone to chronic illnesses and offer preventive measures. This further aids in reducing futuristic treatment costs while assisting practitioners to be more proficient. Thus, healthcare analytics can help lift the performance pressure placed on medical practitioners and allow them to provide tailored care to their patients.


With systematic methods of collecting, recording, and analysing data, the healthcare industry can progress considerably in the future. As technology advances, there will be added pressure for innovation in the healthcare sector which can be supported with the help of analytics. Incorporating digital health solutions and technology will soon transform the healthcare industry to operate at reduced costs with more efficacy and superior outcomes.