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HMS, HAG EQ-Bank 057 MC

A rural local health district analyses five years of de-identified hospital admission data. The analysis shows that the district has a high rate of preventable hospitalisations for chronic obstructive pulmonary disease (COPD).

In response, the district redirects funding into community-based respiratory clinics and home-monitoring programs.

Which of the following best explains how this use of big data reduces healthcare spending?

  1. It allows GPs to identify individual patients at high risk of COPD and intervene early.
  2. It directs funding to services that prevent costly hospital admissions where need is greatest.
  3. It reduces spending by shifting the cost of COPD care from hospitals to patients.
  4. It replaces hospital-based treatment with digital health services for all COPD patients.
Show Answers Only

\(B\)

Show Worked Solution
  • B is correct: Analysing population-level admission data shows where preventable hospitalisations are concentrated. Funding can then be redirected.

Other options:

  • A is incorrect: The data is de-identified, so it cannot be used to identify individual patients. 
  • C is incorrect: Community clinics and home monitoring are publicly funded services. Costs are reduced overall, not transferred to patients.
  • D is incorrect: Home monitoring supports hospital care but does not replace it, and “all COPD patients” overstates the response.

Filed Under: Influence of Big Data Tagged With: Band 5, smc-5487-20-Spending

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