Medco Health Solutions: Case of Data Governance Program

Importance of Data Quality at Medco Health Solutions

1. Case of Medco Health Solutions Medco is a pharmacy benefit manager with the nation’s largest mail order pharmacy operation. The foundation of the Medco DG program was a longstanding effort in data quality. Data quality was important to Medco for several reasons. First, clinical rules and practices, essential to their products and services, were data-driven. Because of a highly regulated industry, privacy and compliance were additional drivers for data quality. Medco has found that their DG program has gained the company improvements in cost effectiveness, risk reduction, and gains in revenues.

It realized there were significant opportunities related to their data-related processes. Among these were instituting uniform data definitions across the enterprise, establishing enterprise-wide data quality standards and processes, and assuring the company was in compliance with all regulations and contractual agreements. Thus, in 2010, Medco launched its enterprise master data management (MDM) and enterprise DG initiatives. Medco developed its DG and MDM activities in parallel. The IT group was responsible for the MDM program, while the company established the DG program in a strategic business unit. The Chief Medical Officer had overall responsibility for the DG program and the Chief Data Officer (CDO) led it. The principal DG mission as a company that manages data as a core corporate asset was to ensure a culture of appropriate accountability and responsibilities. Specific goals to reach this mission focused on assuring consistent, enterprise-wide definitions and protection of data against misuse or inappropriate use. Specifically, the DG program deliverables included (Medco 2012, 4): Policies, standard operating procedures, processes, and best practice guidelines Stakeholder engagement and business level commitment Business guidance to MDM implementation in the form of the business data model and user stories Enterprise data definitions, strategy, and content Data monitoring and continuous improvement including published improvement metrics Data-related issued adjudication, escalation, and resolution Detailed communication strategy with multiple communication vehicles both within the program and between the program and wider organizational community Medco’s approach to DG was to first gain executive sponsor support. Sponsorship and authorization for the program came from the company’s chief operating officer (COO). The company established an ongoing process to ensure that the DG goals and objectives supported all of the program sponsors’ expectations. These are documented in sponsor maps or contracts between the DG program and the sponsors and stakeholders. To initiate the program, Medco identified a small team of representatives from critical functions and data business owners to develop strategy, draft a charter, create a beginning roadmap for implementation, and launch the program. The company also brought in consultants to provide additional expertise and industry perspective. The DG organization grew from the small core team to a multi-level organizational structure consisting of a DG steering committee, board, council, program office, and data steward organization. Each of these groups included key stakeholders from across the enterprise. The downward arrows indicate the authority and authorization hierarchy, and the upward arrows show reporting and communication relationships; the data governance program office supports the governance board, council, and data stewards. The alliance among colleagues in corporate privacy and compliance, global information security, and IT functional areas is an important aspect of the model. DG does not take over these areas, but instead, works in collaboration with them, developing and communicating policies and standard operating procedures.

Questions: a. How is the Medco DG organizational structure similar to the Data Governance Institute framework discussed in the chapter? b. Medco’s DG program appears to be focused in one principal area: MDM. Since the DG program does not include all the domains of DG, can the program at Medco be truly labeled as a DG program? c. What do you believe was a key aspect of the program that promoted collaboration among the different business units?