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Business leaders urge Congress to act now on healthcare IT

Business leaders urge Congress to act now on healthcare IT

January 14, 2009 | Bernie Monegain, Editor

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WASHINGTON – Some of the country's top CEOs urged Congress on Wednesday to include healthcare IT as part of the economic stimulus plan.

Modernizing the nation's healthcare infrastructure would drive down costs, boost efficiency and health outcomes and create some 200,000 jobs, plus thousands of indirect jobs, said Verizon Communications Chairman and CEO Ivan Seidenberg, who chairs the consumer health and retirement initiative for the Business Roundtable.

"The fact is, we just can't wait any longer for health IT," Seidenberg said.

Seidenberg and Business Roundtable President John Castellani spoke Wednesday at a Business Roundtable teleconference briefing.

Both applauded President-elect Barack Obama for his leadership on the healthcare IT front.

Obama has pledged $50 billion over five years to support the adoption and use of healthcare information technology.

John Castellani"Health IT equals new jobs for American workers," Castellani said.

He said the economic stimulus legislation under discussion calls for about $20 billion for healthcare information technology. He added that the investment would have a guaranteed return on investment.

The Business Roundtable, a group of about 160 CEOs of leading U.S. companies, has regularly come out in support of healthcare IT. Last September it called on Congress for legislation that would provide incentives for electronic health record systems, citing statistics that widespread adoption could save $165 billion a year on healthcare costs.

Castellani reiterated that figure on Wednesday.

He noted the roundtable is made up of CEOs of companies with $4.5 trillion in annual revenues and that the companies provide workplace health coverage for more than 35 million Americans.

Related Topics:
  • Congress
  • Ivan Seidenberg
  • John Castellani
  • Washington

Reader Comments (1)Login to Post a Comment

A4Health says:

January 14, 2009 | 5:21PM GMT

Jobs from HIT Investment

The 200,000 number already includes indirect and induced jobs actually. there would only be 43,000 direct jobs. Most of these projects take between 2 and 3 years to ramp up properly and there aren't that many people trained to implement the systems so it is hard to fathom how this would be an immediate stimulus to anyone other then people already in the middle of an implementation. We need this but we need to be honest about costs, benefits and timelines for projects and manage expectations of the stakeholders. .

According to research conducted with the Information Technology and Innovation Foundation, a Washington, D.C.-based think tank, IBM found that investing $10 billion in electronic health records and other health-related IT projects would create 212,000 jobs. http://www.ihealthbeat.org/Articles/2009/1/6/IBM-CEO-Government-Health-I...

If you read the study you will see there are only 43,409 direct jobs assuming an investment of 10 billion a year at an average salary of between $61000 and $78000.
http://www.itif.org/files/roadtorecovery-details.pdf

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