Digital Quality Measurement: Why HEDIS® Success Depends on More Than Technology

Andrew Bell

Managing Director

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Across CMS and NCQA, quality measurement is intentionally shifting from slow, expensive, and laborious abstraction toward fast healthcare interoperability resources (FHIR®)-enabled systems. These new systems will fundamentally alter HEDIS® as we know it. They will usher in a whole new mechanism for measuring performance, one that is continuous and real-time, upending existing workflows, processes, and procedures. This shift toward digital quality measurement represents a fundamental change in how quality performance is measured, managed and improved. As opportunities for retrospective remediation continue to diminish, payors that fail to prepare, risk falling behind in quality performance and operational efficiency and long-term competitive advantage.

The transition to digital quality measurement is not an overnight phenomenon. Rather, it’s the natural evolution of a quality measurement ecosystem that has been moving steadily toward greater automation, interoperability and timeliness for more than a decade.

Historically, HEDIS® relied heavily on administrative claims and expensive manual medical record review. Payors invested significant resources and capacity each year in chart retrieval, abstraction and supplemental data collection to close gaps in what could not be identified through claims alone. Performance was often determined months after care was delivered, with plans racing against the clock during HEDIS®/Hybrid season to locate documentation and maximize measure rates.

Digital quality measurement (dQM) represents the next stage of this progression. Powered by Fast Healthcare Interoperability Resources (FHIR®), digital quality measures are designed to leverage standardized, structured clinical data exchanged directly between systems. The goal is to create a more automated, scalable and near real-time approach to quality measurement, reducing administrative burden while improving accuracy and transparency.

As plans move along this continuum from traditional HEDIS® to ECDS and ultimately to digital quality measurement, the nature of quality operations fundamentally changes.

Success becomes less dependent on:

  • Chart chase
  • Abstraction
  • And retrospective remediation

and more dependent on an organization’s ability to:

  • Capture
  • Structure
  • Exchange
  • Govern clinical data at the Point of Care

In many cases, the challenge is not the technology itself but the operating models, governance structures and workflows needed to support a more continuous and data-driven approach to quality measurement.

This evolution is being driven intentionally by both CMS and NCQA. CMS has repeatedly emphasized the need to reduce provider and payer burden through interoperability and digital reporting, while NCQA's Digital HEDIS® roadmap continues to transition measures away from hybrid methodologies and toward ECDS and digital-only reporting. As this shift accelerates, opportunities for late-cycle corrections will continue to diminish. Organizations that invest now in the people, processes, technology and governance required to support digital quality measurement will be better positioned to succeed in the future state of HEDIS®.

For many payors, the transition to digital quality measurement can feel overwhelming. The temptation is often to focus immediately on technology, FHIR® implementation or interoperability requirements. While those capabilities are critical, organizations that succeed will recognize that digital quality measurement is as much an operational transformation as it is a technical one. The organizations making the greatest progress are aligning leadership, quality, clinical operations, IT, provider engagement and compliance around a shared vision for the future state.

Many organizations discover that their greatest challenges are not rooted in technology alone but in fragmented ownership, inconsistent processes and operating models that were designed for a retrospective, chart-driven environment.

From there, the focus should shift toward learning and experimentation. Digital quality measurement represents a fundamentally different way of measuring performance and organizations benefit from testing new approaches in controlled environments before attempting enterprise-wide transformation. Early pilots allow plans to better understand how digital measures behave, where data gaps exist, how clinical concepts are represented across systems and what operational changes may be required to support future-state measurement. These experiences often provide insights that cannot be identified through planning exercises alone.

As organizations mature, attention increasingly turns toward operationalizing the future state. This often involves reevaluating clinical data acquisition strategies and developing a more intentional approach to how data is sourced, exchanged, validated and governed across the enterprise.

At the same time, organizations must begin aligning people, processes, workflows, reporting structures and governance models around a reality where quality measurement is becoming increasingly continuous and data-driven. The shift away from retrospective chart retrieval toward real-time data exchange fundamentally changes how teams work, how performance is monitored and how quality improvement activities are prioritized.

Over time, the goal is not simply to support digital quality measurement but to build capabilities that can be leveraged across the broader organization. Organizations that treat digital quality as a strategic enterprise capability will be better positioned to improve quality performance, strengthen operational effectiveness and adapt to future regulatory and market demands. The same infrastructure that enables ECDS and digital quality measurement can strengthen risk adjustment, care management, prior authorization, provider engagement, population health and value-based care initiatives, to name a few. Organizations that approach digital quality as a vital enterprise capability will be best positioned to realize the full value of their investments.

ProspHire helps payors assess readiness, identify gaps across people, process, technology and data, and build practical roadmaps for digital quality transformation. Our focus extends beyond technology implementation to the operating models, governance structures and execution strategies required to make digital quality measurement successful. By helping organizations understand their current-state maturity and define a realistic path forward, we turn a complex industry shift into a structured and actionable strategy.