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Archive for March, 2010

Is Health IT Good Medicine?

Tuesday, March 23rd, 2010

by Dennis Powell, e-Management

What are the risks associated with a modernized HIT network? Information technology (IT) has helped to transform the way we conduct business and our lives. Fifteen years ago, many of us hadn’t ever purchased anything over the Internet. As a matter of fact, because of technology, there’s no need for many of us to rush out to the record or bookstore to purchase the latest U2 album we’ve been anxiously awaiting; we simply go to iTunes or Amazon.com, click, and download our favorite music within minutes. Think about how easy technology has made banking. We can now move money from our savings to checking accounts, or pay our bills using our mobile phones. And what about e-learning? Busy business professionals or stay at home parents can attest to the convenience of taking accredited courses online at their own pace toward a trusted degree.

How did we get so lucky?
For many, technology is truly a gift from the Gods. But there may be one area where the verdict is still out regarding whether technology is a gift or a curse, the healthcare industry. Health information technology (IT), or HIT, is the use of innovative software, products, or systems to provide services throughout the healthcare industry. Specifically, HIT uses computer systems to share, store, and retrieve healthcare information. In very basic terms, the same way computers have helped us in shopping, research, education, word processing, and the like, HIT can do the equivalent with our healthcare or healthcare information. HIT draws on healthcare information innovations such as electronic health records (EHR) and healthcare informatics.

In general, IT has helped create efficiency in so many parts of our lives; so why not healthcare, which by many accounts is plagued with cost overruns, fraud, and mistakes (sometimes fatal). As a way to improve on an old system, HIT is supposed to give us information we need to make more informed decisions about our well-being.

A HIT against privacy?
HIT on the surface seems to be a “hit” idea. But like anything new, there are serious concerns—especially in the areas of privacy. Arguably, the one thing that Americans hold dearer than their right to free speech is the right to privacy. A recent report released last month (February 2010) by the Ponemon Institute seems to reinforce this assertion by revealing that most Americans are worried about privacy issues surrounding healthcare—at least when it comes to the government. For instance, more than 73 percent of 883 adults surveyed by the Institute flat out said they don’t trust the government to safeguard their medical records. What may come as a surprise is that the same sample overwhelmingly (more than 71 percent) said they place more trust to healthcare providers in protecting their privacy. Interestingly, 84 percent of those surveyed didn’t even know the federal government is considering developing a national database of medical records. Seventy-five percent think the government is wrong for even contemplating such a data bank. Enough with the statistics, clearly privacy is a concern for many Americans.

So should we be suspicious of the government and HIT?
Like it or not, the government is leading the way with HIT. Back in 2004, President George W. Bush put forth an executive order and a plan that would drive the evolution of health IT. He saw HIT as a way to lower costs, improve efficiencies, reduce medical mistakes, and improve overall care for patients. Today, President Barack Obama has also shown his commitment to HIT by funneling nearly $20 billion in American Recovery and Reinvestment Act of 2009 (ARRA) or stimulus funds toward HIT. A portion of the Recovery Act funding for HIT is for the development of a health IT infrastructure, the Nationwide Health Information Network (NHIN), which allows healthcare to share secured (encrypted) information on patients electronically. Since the current president loves timelines, the deadline for the national system is 2014. *grin*

ARRA has put in place additional security measures for the Health Insurance Portability and Accountability Act (HIPAA) of 1996. The Obama administration sees the changes within the Health Information Technology for Economic and Clinical Health Act (HITECH Act) as necessary in light of security and privacy breaches (e.g., Veterans Administration) of the past. Ultimately, the consumer is promised more peace of mind under the new law. On the surface HITECH is comprehensive, addressing consumer privacy in areas of protected health information (PHI), reporting security and privacy breaches, and rules on the use of information for marketing. Even more, HITECH enforcement of protected health information is stricter with steeper penalties for noncompliance. There are even incentives in place for persons to report violations.

HIT will be a “hit” with consumers.
With the proper security measures in place to safeguard consumer health information and the adoption of best of breed IT systems, HIT should be a hit with consumers, the healthcare industry, and the government. The HIT benefits are many. A 2006 RAND Healthcare report asserts that we could save upward of $81 billion every year if HIT were the standard in the healthcare industry. Plus, we have already discussed HIT can help to improve the quality of healthcare by reducing errors (sometimes fatal) linked to outdated paper-based systems. In fact, a 2006 Agency for Healthcare Research and Quality report agreed with RAND Healthcare, concluding that HIT is a safer, more efficient, and more effective way to do business.

Since the federal government is the relevant buyer of healthcare products, it is uniquely positioned to help the acceleration of HIT adoption in the USA. HIT holds the promise of improved research because of the ease of sharing information. What’s more, HIT has profound public health implications such as the ability to identify outbreaks of diseases faster. Plus, according to RAND Healthcare, HIT would allow seamless scanning of consumer data to determine possible risks that could promote infections; such information may help in providing information to the public for prevention measures. 

Health IT, hit or miss-take?
In usual form, we want to hear from you. What’s your take on HIT? Are you one of the 73 percent of Americans who don’t trust the federal government to protect your health information? What are the risks associated with a modernized HIT network? On another note, what is your take on the government’s role in healthcare generally? We look forward to your comments and your help to advance this topic.

Washington to Paris in 3 Hours – Aviation and the Future of Global Commerce

Tuesday, March 9th, 2010

By Bambo Bamgbose, Executive Vice President and Chief Financial Officer for e-Management

Concorde 216 flies over Bristol, England. Photo by Adrian Pingstone.

Concorde 216 flies over Bristol, England. Photo by Adrian Pingstone.

1969. That was an exciting year for space exploration, when the first person walked on the moon. It was also a great year for aviation. Back here on earth, the first flight of the Concorde took place March 2, 1969. You remember the Concorde right? It was the new, sexy supersonic way to cross the Atlantic in about half the time it took a regular jumbo jet. 

That was 41 years ago. The question begs, “What’s happened since then?” From 1969 through 2003, the promise of potential advances in commercial aviation was rivaled only by the advent of the personal computer (PC). However, somewhere along the way, the future of commercial aviation seemed to have lost its way while the PC plowed full steam ahead.

How fast was the Concorde?
In 1986, a British Airways Concorde flew around the world—a distance covering 28,238 miles—in just under 30 hours. That same distance by a commercial airliner today would be covered in fewer than 60 hours. To put this in some perspective, the estimated time to fly from Washington, D.C., to Melbourne, Australia using commercial aviation today is approximately 20 hours. Were the Concorde still in service and still operating at its 1986 speeds, you could fly down to catch a tennis match at the Australian Open in about half the time. 

How much did it cost?
One significant challenge for travelers seeking a flight on the Concorde was price. For instance, a roundtrip ticket between New York and Paris was $3,900 in 1982. That same ticket had risen to over $8,000 by 2000. However, that is not surprising given the fact that practically no progress was made in aviation during that time period to infuse commercial aviation with the Concorde like capabilities thereby democratizing this way of travel and decreasing the cost curve while expanding the revenue base. By way of contrast, the cost of a PC which, in 1982 cost over $3,000 had fallen into the hundreds of dollars by 2000.  

What if the Concorde standard were commonplace?
What might have been—and potentially yet may be possible—were aviation to have kept advancing to make supersonic travel the norm rather than the exception in commercial aviation? What are some of the ways in which that might have transformed global commerce?

For starters, in addition to the Northeast Corridor of the United States, we might also have the Transatlantic, Mediterranean, and Far East Corridors where business travelers could be assured of reaching any Asian capital in 8 hours or fewer, and any European or Mediterranean capital in about half that time. How about express mail? Goodbye overnight mail, hello same day arrival!  Imagine the impact on tourism and commerce when you could literally leave Washington, D.C., early in the morning for an afternoon of shopping in Paris and be back in time to catch the 11:00 nightly news?   

What do you think?
How do you think our interconnected wired world would look with a supersonic commercial air fleet to complement our high-speed trains and ultra fast Wi-Fi connections? What other innovations could accompany this change in the speed of travel—in business, culture, communications, politics, education, energy, or environment? Test your imagination and weigh in!