April 2004
Healthcare IT: A Means To Improved
Effectiveness
Healthcare is an industry at the edge of a chasm. Spending on healthcare
in the U.S. reached $1.4 trillion in 2002, is projected to increase to $2
trillion in 2008, growing to 14 percent of the GDP from roughly 11 percent
in 2002. It will keep growing given the aging population and increased life
expectancy, unless something changes. Information technology in healthcare
is one means to an end of addressing the escalating costs, societal, and
regulatory pressures and increasing consumer demands faced by the healthcare
industry. For example, almost 100,000 people die each year in the U.S. due,
at least in part, to medical errors, most preventable (that�s more than
traffic death toll!); another 770,000 suffer some form of adverse drug
reaction. Could IT help? We are all impacted if we do it right�. And if we
do it wrong�?!?
Any visitor to the Centre for Global eHealth Innovation immediately gets
the message of the importance of factoring in the end users (doctors,
nurses, and hospital staff) into the application of IT. Located above the
emergency ward of the Toronto General Hospital, the Centre is a joint
initiative of the largest hospital group in Canada, and the University of
Toronto. Its mandate is to facilitate adoption of information and
communication technologies within the health system. One part of the Centre
is the Multi-Tasking Simulation Laboratory (colloquially called a movie
set), a flexible space designed to recreate real-world settings to test
eHealth innovations. Using props, this space can be transformed into a range
of health-related environments, including a hospital waiting room, a
consultation room, a nursing station, an intensive care unit, an operating
theatre, a classroom, or a home, and manned by nurses, doctors and medical
specialists. The scope of the Centre is awesome covering everything from
handheld and wearable computing to Telehealth, to biomedical devices and
integration of clinical information systems, to international and
cross-cultural aspects of eHealth innovation.
HEALTHCARE BUSINESS REALITIES
Six key business realities across the healthcare industry bring profound
implications not only for users of the system and healthcare professionals,
but also for network and information management technologists.
Business Reality #1. The portability, health information standards and
privacy implications of the Health Insurance Portability and Accountability
Act (HIPAA) in the US (and similar legislations elsewhere), change the rules
of the game. HIPAA provides a minimum set of security standards to protect
individually identifiable medical information. It also specifies a series of
administrative, technical, and physical security procedures for covered
entities to use to assure the confidentiality of protected electronic health
information.
Business Reality #2. Medical errors carry high human and financial costs
in the form of extended treatment periods and deaths and escalating punitive
settlements and resulting costs of liability insurance. A 1999 Institute of
Medicine report estimated that medical errors cost the U.S. approximately
$37 billion/year, almost half preventable. An added impact of this problem
is that, particularly in the U.S., medical malpractice underwriting losses
are exploding, adding about 7 percent to the overall annual increase in
healthcare expenditures.
Business Reality #3. Between 1970 and 1996, mandated processes have
increased 25-fold. These mandates impact virtually every aspect of the
operations of healthcare institutions, from access to health care and
billing and fraud prevention, to prescription and treatment tracking, to
crisis management procedures. Paperwork adds up to 50 percent nursing care
and 100 percent emergency room overheads to the time spent for patient care.
For example, the Department of Health and Human Services � the major federal
regulator of hospitals � has defined Medicare and Medicaid rules and
instructions in more than 130,000 pages. That�s three times the size of the
IRS�s tax regulations!
Business Reality #4. Shortage and distribution of skilled professionals
is leading to delayed or sub-optimal care. While shortages need to be
addressed, better utilization of current resources is a key imperative. A
number of factors exacerbate the ability of healthcare institutions at the
system level to deliver their services to their clients. For example,
medical experts are a large investment by the healthcare institution (e.g.,
the total cost of having one radiologist is $800,000!) and represent a
resource that needs to be effectively utilized. Keeping track of these
critical resources, travel time between facilities and ineffective
communications are all challenges that impact the quality and cost of
patient care.
Business Reality #5. Patient relationships need to leverage knowledge of
the patient�s entire medical history, whether based on face-to-face
interactions or across electronic channels. Consumers are demanding
�high-tech� and �high-touch� services to manage their healthcare needs, and
want a range of options for accessing medical experts, including
face-to-face, via the Web, and via the telephone. Already, a significant
number of consumers go online to look for information on health-related
topics. Dubbed �cyberchondriacs,� the U.S. numbers have grown from 54
million in 1998 to 110 million in 2002. As a result, 43 percent of
respondents are willing to select their doctor based on the availability of
Internet systems, and 45 percent are willing to select their health plan
based on this.
Business Reality #6. Finally, healthcare CIO�s are under constant
pressure to do more with less � to constantly develop more proactive
information and networking management models to enhance healthcare delivery.
Unfortunately, in many cases, the ability of IT to impact the quality of
healthcare delivery is not well understood in the general medical community.
Consequently, healthcare IT as a percentage of an institution�s operating
budget (1.8 to 5 percent in North America) is generally lower than that of
other information-intensive industries.
POINT OF CARE SYSTEMS
IT is not a panacea given the political, governmental and socio-economic
dimensions of healthcare delivery. However, healthcare IT executives are
responding to the above realities in a number of ways. Healthcare
institutions of all sizes are targeting to re-engineer healthcare delivery
by developing and integrating a range of applications (e.g., patient flow,
physician order entry, billing and claims processing, and other clinical,
operational, and financial systems), centered around Computerized Patient
Records and PACS (Picture Archiving and Communications System). This
re-engineering makes all patient, clinical, pharmaceutical, and corporate
data readily available to users and applications that need them. Extending
these capabilities to the Point of Care is a common thrust across the
industry, providing patient, diagnostic, and medication input and
verification. While wired solutions can go a long way towards addressing
these Point of Care needs, mobile solutions based on structured and secure
wireless LANs with enterprise-wide roaming are a key technology in making
physicians and nurses more efficient, reducing errors, and contributing to
better patient care. Extending clinical, financial, and administrative
processes to PDAs and tablet PCs right at the Point of Care opens up
significant opportunities to get relevant treatment and medical history
information where it is needed. These systems recognize that physicians and
nurses are busy professionals, that time with each patient is limited, and
that quality care demands that necessary data be immediately available. This
also minimizes the human and financial impacts of entry errors, especially
when such systems are linked to decision support systems to provide
treatment options and detection of latent errors before they become
patient-effecting errors.
Point of Care solutions have to be part of the multi-layer security being
embedded across the IT infrastructure as an important step to protecting
client information and meeting privacy requirements. These need to be
designed for business continuity on a highly robust networking
infrastructure, protecting medical information and recovering from disasters
quickly. Point of Care solutions are also part of a thrust of making
healthcare delivery more virtual and collaborative, leveraging resources
wherever they may be and however they are connected. Virtual private
networking, IP telephony, and video streaming technology are important
enablers to make this happen.
In the longer term, location tracking and location-based services,
integration with smart agents to search out information required by the
physician, and automated database searches or even artificial intelligence
to advise physicians of possible medical risks (e.g., undesirable drug
interactions) are but a few examples of technologies that will further
enhance Point of Care solutions.
As IT professionals, citizens, and healthcare consumers, it behooves all
of us to be opinionated on the role of IT in healthcare delivery. The new
healthcare model leverages technology from back office to networked clinical
devices to the point of care and even to the home, and responds to the
business realities discussed earlier. But success will only come if these
developments are tightly matched to the needs of doctors, nurses and
healthcare professionals. c
Tony Rybczynski is Director of Strategic Enterprise Technologies at
Nortel Networks. He has over 30 years experience in the application of
packet network technology. For more information, please visit
www.nortelnetworks.com.
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