Five ways health IT will reduce the cost of care
Health IT presents many opportunities to dramatically improve healthcare delivery in America, from changing the way healthcare is financed to enhancing efficiency. Jerry Buchanan, account director, healthcare technology and services at eMids Technologies, shares five ways that health IT can cut healthcare costs in the long term.
1. Improved standards of care
Analyzing data collected by electronic health records provides the best treatment methods, leading to a healthier population. "Whether this data is combined with financial data to analyze cost effectiveness or not... is tangential to the overall goal of knowing the best way to handle treatment for each individual patient," Buchanan noted.
2. Increased patient involvement and collaboration
America's health expenditure is in a large part due to chronic health issues. Chronic diseases brought on by poor lifestyle choices are difficult to handle, but health IT "provides a clear avenue for enterprising organizations to develop innovative disease management solutions to address the issue," according to Buchanan. Data retrieved from EHRs could also be useful in determining ways to stem costs associated with chronic illness.
3. Putting information at the forefront
The healthcare industry is constantly changing, and that results in an overwhelming amount of information to distill and absorb. Health IT offers a way to bring that information to the forefront.
4. Focus on outcomes
"The coming tidal wave of electronic clinical data provides an opportunity to replace our outdated, volume-based, fee-for-service business model with one focused on the quality of the product," Buchanan said.
5. Transparency to the patient
Health IT should be used as a tool to include the patient in his or her own care. "Our current system of financing healthcare leaves patients completely insulated from the cost of their care," said Buchanan. "Until we find a means for patients to educate themselves and question services, quality and price, the market forces that can naturally contain rising healthcare costs will never have an opportunity to work."
Showing 9 Comments
Tech4Pharm say: Watson
Information Technology that went into developing Watson (the Jeopardy winning wonder-machine) could be incredible for medicine. Can you imagine feeding in symptoms and data points about the patient and simply receiving a list of potential diseases and methods to cure? Perhaps you could put a good database, a search tool, and a seasoned MD together to work and you could get the same result. I'm curious to see what else IBM does with the Watson technology.
Kelly Mehler say: Re: Watson
This could be another cutting edge technology tool for doctors. How, I wonder though, could this play into improving the quality of care and the relationship between dr and patient. If a "Watson" is developed for health professionals, there should be a way for patients to have almost the same device themselves in order to research & keep track of their health needs.
DonJarrell say: this is theoretical; we believe we've got the clearer "how"
Obviously, there are no magical, overnight fixes to the massive issues of healthcare costs OR the separate issues of incomprehensible HC IT. However, this post is a repeated indication of how HC is stuck in the time warp of 1982 IT when such broad, vague, hopeful promises were rampant in all verticals.
We think we have a more concrete path toward Buchanan's #4, Focus on outcomes, but agree with his premise on the need. We just think it is much more of a *survival* issue with Pay for Performance looming.
Rather than repeat myself, I've covered by response at at http://prista-news.blogspot.com/2011/02/response-to-healthcare-it-news.html. Full disclosure: we are in the HC IT biz focused NOT on EMR, but on really serving hospital operators with clinical operations metrics in a new, expanded perspective, and we're launching the application in March.
pjcasey75 say: IT will not save us money. But we hope it will be worth it.
There are so many unsupported, overly optimistic statements in this article that it's hard to know where to start. Maybe the title: "IT will reduce the cost of care..."
The previous commentors raise great objections highlighting the INCREASED costs of implementing and using EHRs, so I'll only address two claims in your point #3.
First, having data in digital format means it is stored, retrieved and transported much more easily than it can be on paper. Given. Totally agree.
However, touting the benefits of all that "information", is a huge leap. EHRs capture data, much of it woefully unstructured, which is not the same as "information". That EHR data we're now capturing somehow provides the best way to manage care is still a prayer awaiting an answer. I too have faith, but I'm not selling all and waiting on the mountaintop just yet. Why?
The data isn't validated. It differs system to system. It's not likely to be reliable except within a single EHR. And we've no standards for interpreting and reporting it yet. So it's far from being "information".
Even so, many doctors routinely voice complaint that systems aren't written for them (see comment)- mostly because EHRs fail to provide reports that are useful even at the clinical level, forget about across platforms. You design your data capture for the kind of reporting you expect to produce. Hence, most EHRs focus on data capture, workflow, and reporting primarily for billing purposes. Strategic BI, covering the vast amounts of data the article addresses, are only as good as the underlying data - which, lacking standards, is highly suspect. Canada's years of experience prove this already.
Lacking adequate data standards, we are far from validating the quality, reliability, and significance of the data collected. Even then the data has yet to be transformed and interpreted (again, according to standards) into actionable information. When the industry (or govt) decides what kinds of clinical reporting we want, and re-writes EHRs to meet those standards, only then will we begin to get some informational ROI.
Second, as mentioned, medicine changes literally every day. So does everything in the technical arena where EHRs have to operate. And security threats morph by the hour.
Yet computer software abhors change. When a new drug hits the market, the doctor writes a paper prescription - no problem. But if its not in your EHR system, it may be a big problem. Even if you type it in, it may need to be coded, categorized, etc. prior to being useable in any "information" output. That's the difference between relying on brain matter versus silicon to interpret medical data. Silicon always requires code.
Change management is why "maintenance" costs of virtually any commercial software (excepting perhaps open source) far outstrip the initial acquisition costs over the whole lifecycle. Cloud computing solves dynamic resource allocation, but not the steady stream of changing software requirements. In simple terms, that means changing, upgrading, enhancing, retrofitting, and making software interoperate with other systems costs more than designing it cost in the first place. ICD-9 to ICD-10 migration is just one such foreseeable change that will cost millions if not billions of dollars. How many unforeseeable platform, security, interoperability, legal and informational changes are coming? Who knows? But one thing we do know - it will cost more money.
We cannot responsibly set expectations that this great endeavor is justified by cost savings, at least not within the next decade. Most healthcare businesses (except insurance companies) are facing a crunch in a much shorter time frame than that. Financial pressures will mean hospitals and clinics across this country will consolidate, merge and close in large numbers in the coming years. Changes in healthcare IT will accelerate this, not save us from it.
EHR migration is still the right thing to do, but not because it will save us any money. It will transform medicine for sure, and we hope, though we cannot yet prove, that it will result in better outcomes.
dch say: Agree with PJCasey
Attention HIT geeks, bureaucrats, administrators, politicians, vendors …
Give us something we WANT to use and we will.
Simple, but apparently not easy.
That means NO productivity hit (no excuses here), ease of use (think like humans, not cloistered coding gnomes), low TCO, high durability/stability, and gee-whiz data analysis/presentation.
I suggest standardizing medical data constructs to ease data exchange between clients, and to make it easy to change/add EHR products. (Vendors, you may not like this, but how much do you really want us to buy into this long term?)
Apple didn’t have to strong arm us into the smart phone market. They made something we wanted. We bought it. (No federal carrots/sticks needed.) Simple stuff for market savvy folks.
I think the simplest thing the feds could do … the biggest bang for the buck … is foster medical data standards development. That’s all. No huge bureaucracy needed.
By itself, that would powerfully catalyze the EHR market by making it easier for end-users to change products. As in other areas of the software industry, the fiery market will then forge the rest.
dch say: productivity?
Above article not written by someone who lives in the clinical end-user's world.
An EHR allows simultaneous chart access by multiple users and is supposed to improve what I can do with the medical record's information. Analyze, flag, alert, search, etc. Nice ...,
SO LONG AS the power is on, the computer is functioning properly, the software is running correctly, and the network is up. Hopefully a hard drive (or something else) hasn't crashed, or malware hasn't made it into the system, the last Windows or EHR (or other) update didn't break something, and backups are occurring properly. The EHR is down? So sad, too bad. There are still patients in the waiting room. What now?
And expense ... several years ago my geek bubble was burst by a former hospital administrator from a large hospital chain who enlightened me re: the prodigious cost of creating and maintaining an EHR.
For my own clinic's medical record, I used H.S. educated people (or, during the summer, their kids who were still in H.S.) to assemble and file my paper records. No can do with an EHR. Need more educated (= more expensive) tech savvy people to keep the beast alive. Or me ... and I'm even more expensive. And computers don't last as long as paper records & file cabinets. Gotta keep replacing them and moving the data. Oh ... and paper records still work when the power goes out.
And then ... there's productivity. Oops. Absent the expense of a scribe, most docs take a tangible hit on the number of patients they can see daily once they transition to an EHR. EHR's simply aren't written by clinicians for clinicians. They are written by back-office coders for sale to administrative personnel. Human data input/interface issues are not considered sufficiently. Yet, that's a critical choking bottleneck for EHR adoption from the clinical end-user's perspective! Like it or not, docs can see more patients by handwriting their notes during patient encounters. If this isn't solved, docs will dump their new EHRs to paper and use the equipment as door stops.
Reducing a doctor's work efficiency does NOT appear to be a useful way to reduce the cost of care.
BobFabbio say: Lowering the overall cost of healthcare can be done.
We see some employers trying to provide different healthcare benefits and/or premiums based on the risk profile of their employees and dependents. For many employers, this is too big a jump. While it’s impressive that Safeway has been able to flatten their healthcare spend over 4 years while most everyone else’s is rising, they have not been able to lower it. Isn’t that the real goal for employers?
The truth is that there is only so much an employer can do with healthplan redesign. In the end, the employer’s healthcare costs are a variable cost line item and driven by:
1. How often their employees and dependents seek care;
2. Where their employees and dependents go for care;
3. How many unnecessary procedures are performed on their employees and dependents?
4. How many unnecessary brand Rx meds are consumed by their employees and dependents?
5. When their employees and dependents need care and the options available at that time?
And most of these factors are truly out of the employer’s control. What it is going to take is the advent of healthcare providers that have the courage to bring change and innovation to healthcare that lowers the overall cost of care for the employers and their employees and dependents WHILE improving the healthcare experience!
Check us out.
Thanks,
Bob Fabbio
CEO
WhiteGlove House Call Health
www.whiteglove.com
robforster say: How does IT mitigate healthcare cost trends?
Re: comments from Mr. Thompson, there is tremendous wishful thinking regarding IT and its effect on healthcare costs. Some of the myths today are the following:
1. We cannot define outcomes currently with any granularity to be helpful. Thus metrics will be process focused only for 10-15years, thus IT will have little or no effect in establishing care standards.
2. Patient involvement does not necessarily reduce costs-in fact may increase costs by their engagement and expectations generating unnecessary testing and diagnostics.
3. So far, consumer transparency has not "bent the curve" . Patients tend to follow their physicians recommendations regardless of other vetted contrary information.
Most cost savings will be at the POS with physicians ordering less duplicative tests and having decision support tools avialable to them in the exam room. Beyond those to mitigating effects, it is hard to see costs impacted favorably by a connected delivery system. Rob MD
timiti say: Self Service
IT in other industries has transformed costs associated with common transactions. This may not be the biggest cost benefit in healthcare, but HIT certainly enables consumers/patients to do things themselves that used to require human intervention.