MultiCare Health System to save $25 million in Health Catalyst analytics deal

MultiCare Health System in Tacoma, Washington.

MultiCare Health System in Tacoma, Washington and Salt Lake City-based data analytics company Health Catalyst joined forces in a shared-risk contract aiming to save $25 million a year while also improving clinical outcomes.

Health Catalyst said that it is putting part of its contract at risk and the deal is tied directly to the achievement of the annual $25 million improvement goal. MultiCare, for its part, made a direct investment in Health Catalyst during its recent Series E funding round.

MultiCare COO Florence Chang said that the five-hospital nonprofit has a goldmine of data in its Epic electronic health record.  "The partnership we have with Health Catalyst has helped us take this great data and make that actionable information, or insight, to provide better care for our patients."

[Also: UPMC cost management tool slated for market under Health Catalyst deal]

The data becomes even more important for managing different populations, Chang said, pointing to an effort to improve outcomes for patients with pneumonia – one of several initiatives MultiCare has launched with Health Catalyst.

It resulted in a 16 percent reduction in the pneumonia mortality rate, compared to a 1.7 percent improvement in pneumonia mortality within the National Top Quartile of U.S. hospitals, according to Premier Data available from 47 states. It also resulted in a 24 percent reduction in pneumonia readmissions and a 2 percent decrease in length-of-stay for pneumonia patients.

[Also: Partners HealthCare, Health Catalyst team up on population health center]

This latest deal builds on work MultiCare and Health Catalyst have conducted together since 2010. The organizations are expanding their investments in each other  – and some MultiCare employees have become Health Catalyst employees – a model that Health Catalyst has employed with other clients, including Partners HealthCare and Allina Health.

"What we see is that Health Catalyst has the same vision, the same alignment for the goals we want to achieve," Chang added.

Health Catalyst CEO Dan Burton agreed.

"Our shared experience has taught us both that transforming healthcare requires more than great software," he said in a statement. "You must combine technology with exceptional people with the experience and know-how to improve outcomes."

Twitter: @Bernie_HITN