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The Business Forum Journal


Health Information Exchange is Your Competitive Edge


By Patricia Dodgen

 

In these difficult economic times, communities just like yours are looking for the key advantage that will make them stand out from the crowd. As you look for that competitive edge in the challenging world of economic development, consider becoming a leader in health information exchange (HIE). This just may be the unique advantage you need to distinguish your community from your competition. As an added plus, the cost is relatively low and the benefits extraordinarily high.

In 2004, President Bush signed an order that each person in the United States will have a personal health record by 2014. Although HIE development has been in process for several years, this Executive Order can be seen as the beginning point in the transformation of healthcare delivery in the United States. HIE activity is taking place in many states. Corporate giants such as Microsoft and Google are now introducing personal health records for consumers. It is simply a matter of time before consumers, instead of payers, are directly participating in, if not controlling their own health care. At that point the entire system becomes consumer/patient-centric. As with any transformative process, the early adopters will gain the most benefits and have the greatest ability to shape their own future.

Today, only six percent of our healthcare providers are fully electronic. In other words, your medical records are still being done as they were one hundred years ago, in paper and ink. It doesn’t matter if it’s your primary care physician, your local hospital, or your pharmacy. Your medical records are being kept on a piece of paper and stored in a file at each of your provider locations.

In addition, your lab results are being photocopied and faxed from your lab to your doctor, your medical records are not accessible to you if you go on vacation outside your community, and the odds are good they contain some incorrect information. If a disaster like Katrina strikes, your medical records may be lost forever. If you have an emergency, even near your home, odds are that your medical records will not be available at the emergency room when you arrive. Critical time will be lost simply because your provider still uses paper and pencil. The time to change this dangerous situation is now.

In addition, we are all concerned with homeland security today and how our communities may respond in dealing with a variety of medical crises/events that could potentially occur. In controlling the rapid spread of a contagious disease and/or dealing with bioterrorism, immediate access to key information is critical to a quick and decisive response. HIE provides exactly the type of speed and accuracy demanded by the consumer in any public health crisis.

In the future you will have your health information, correct, complete, and current, and available to you and your healthcare provider, when and where you need it so you can receive the best possible care. A simple vision of the future, but one that is extremely difficult to achieve. Today, it is nearly impossible to electronically transfer your records from where they are to where they are needed. HIE can change all of that and give your community a key competitive advantage.

1. What is HIE?

HIE is simply the transmission and receipt of health information electronically.  It makes your health information available to you and your providers when and where you need it so you can receive the best possible care.

• Health Information Exchange is a key part of the solution of moving healthcare into the 21st century. It consists of two primary components.

First is the use of technology to support organizational practice and clinical requirements, including Electronic Medical Records (EMR’s), Practice Management Systems, and E-prescribing.

The second component is the infrastructure to enable data sharing between organizations.

• Recent studies indicate over 98,000 patients die each year due to clerical medical errors and more than 1,000,000 serious medication errors occur annually. The United States spends nearly twice as much per capita as any other nation and still ranks only 37th in the developed world in overall healthcare quality.

2. How does HIE work?

It works the way other electronic systems such as banking and e-commerce work in our world today. Your medical records and history are captured electronically and transmitted to the providers that need the information to supply you with the care your need where you need it. The best analogy is to compare your medical records to your banking records. We can all stop by an ATM almost anywhere in the world and access cash from our bank. Our money is available to us when and where we need it. Unfortunately, that is not true of your medical records in the absence of HIE.

3. Why HIE?

HIE is a low cost, high return opportunity to make your community more attractive for economic development. Whether you are looking to attract new business to the community or grow and retain existing businesses, HIE gives you the advantage you need to be more competitive.

• In nearly every survey of “Great Places to Live/Work”, the quality and availability of medical care is one of the key factors in rating and comparing communities. The ability to attract and retain the best and the brightest employers and employees in any community is a distinct advantage and will lead to higher ratings. Companies that are looking to relocate or expand consider this factor in choosing their new community. HIE is one major tool for upgrading the quality of care in any community.

• Recent studies have estimated that $100 billion per year is spent on redundant treatments and mistakes. Given the rapid rise in healthcare expenditures (15% of GDP rising to 19% by 2015), HIE can deliver better accuracy for lower costs and help restrain the growth of healthcare expense for everyone. Some of the efficiencies gained from HIE include:

  • Patients can get enhanced services through e-visits, reminders, scheduling, prescription refills, and many other services now requiring timely and costly provider visits.
     

  • Patients and providers can receive their lab and imaging results online for real-time care and greater efficiency.
     

  • Patients and providers have new capabilities to collaborate with shared case management tools, identification of best practices and consultation with experts worldwide.

• The ability to recruit the best and the brightest providers leads to higher quality healthcare. Both primary and acute care providers prefer to be in an environment where they can interact with and have access to specialists with a variety of skills and competencies. When a community has good healthcare provider talent, it will tend to attract more and better healthcare provider talent. Having more provider capabilities in a community gives that community the ability to provide better health care. Success breeds success.

• The ability to attract and retain the best providers is critical. Recent medical school graduates are already HIE competent when they enter the workforce and have an expectation of operating in an electronic environment. Communities that are well along the HIE path have a clear advantage when recruiting the highest quality providers to their community.

4. Economic Growth Tool

There are three primary reasons HIE is such an attractive tool for communities looking for that competitive edge:

• Better quality healthcare

In addition to the benefits of being able to attract better physicians and reducing medical errors, HIE increases the quality of care for the community. Consumers are increasingly aware of communities that can provide them with the highest quality healthcare and will choose to live in communities based on the ability of the community to provide their desired level of service. In addition, communities adopting HIE can look forward to an electronic future where they can connect with patients in a variety of new ways and offer a variety of new services.

• Lower overall healthcare costs

Numerous studies indicate significant savings can be obtained by all of the providers and users of healthcare. As healthcare consumes an ever increasing portion of our GDP, anything that reduces this growth of expense will be a real attractor for companies seeking the community that can provide the best healthcare at the lowest cost.

Even a percentage point or two in lower costs can add up to millions of dollars for major corporations.

• Better responsiveness to a medical crisis Government has a critical role to play in dealing with a variety of medical crises/events that may occur in any community. In controlling the rapid spread of a contagious disease and/or dealing with bioterrorism, immediate access to key information is critical to a quick and decisive local response. HIE provides exactly the type of speed and accuracy needed to respond to a public health crisis.

5. Service to Local Employers

It is reasonable to expect employers will enjoy the benefits of lower healthcare costs based on the improvements brought about by HIE. HIE has been shown to reduce the overall costs of healthcare. Lower healthcare costs will eventually result in lower healthcare premium costs to employers and employees. Employers, one of the main funders of the healthcare system, will see a direct correlation between their costs and improvements in care.

HIE also provides a critical tool for improved healthcare for all consumers/patients. These improvements in the quality and delivery of healthcare in a community will result in an overall improvement in the general health of the population. Employers directly benefit by having healthier employees who are more productive, lose less time to illness, and have higher morale.

In addition, HIE is an advantage to the employers who participate in HIE.  Younger workers entering the workforce have very high expectations concerning control over their healthcare information. They are capable of using HIE to promote healthier lifestyles and to gain control over their own healthcare. Employers that can provide HIE for their employees will have an advantage when it comes to recruiting and retaining top level talent.

6. Why Economic Development?

Economic Development entities have distinct advantages over any other potential organizations in your community to be the catalyst to for HIE. These advantages include:

• Community Leadership

In most communities, most of the key local leaders are an integral part of the economic development effort. It is unlikely that all of these key players are part of any other local organization. Therefore, it is natural for economic development to assume this role.

• Vested Interest

These same community leaders also represent most of the major employers, government leaders, and healthcare providers in the community. As discussed above, everyone stands to gain from HIE. In several communities across the country, employers are beginning to take the lead in pushing HIE in their community simply because they see the benefits that accrue directly to them. In other communities, government officials are taking the lead. However, the best solution is when they all work together.

• Independent Third Party

As with any project that impacts numerous local entities, there is concern about the impact the change may have on each individual entity. When the conversion to HIE is led by one of the entities with a vested interest, trust instantly becomes an issue. Regardless on the motivation, even if it is totally pure, others will be suspicious and resistant. The local economic development agency has the advantage of being viewed as a generally neutral party. This neutrality positions economic development as the natural leader for the HIE effort.

7. How Do I Get Started?

There are four simple steps you can take immediately to begin the journey to HIE in your community.

• Step 1 is to learn as much about HIE as possible. There are numerous sources of information on the subject. (See the attached for a partial list of web resources.)

• Step 2 is to craft a detailed strategy and plan for introducing HIE into your community by leveraging the organizations included in your membership. The key to your strategy is the identification of the value proposition for each member of your organization to be an active participant in the project.

• Step 3 is to obtain the support and commitment from your Board of Directors for implementing your HIE strategy.

• Step 4 is to build community support for the project. This step involves a general education process as well as individual meetings with key potential constituents to gain a wide basis of support for your efforts.  Once you get the community behind you, HIE will take off and you will begin to see the rewards from your work, and your community will be much more competitive in the challenging world of economic development.


For Further Information:

1. eHealth Initiative Foundation; Getting Started ~ http://toolkits.ehealthinitiative.org/getting_started/default.mspx

2. eHealth Initiative Foundation; Resources for Getting Started ~ http://toolkits.ehealthinitiative.org/getting_started/resources.mspx

3. eHealth Initiative Foundation; Toolkit ~ http://toolkits.ehealthinitiative.org

4. eHealth Initiative Foundation; Value Creation and Financing ~ http://toolkits.ehealthinitative.org/value _creation_and_financing/

5. eHealth Initiative Foundation; Public Policy and Advocacy ~ http://toolkits.ehealthinitiative.org/public_policy/default.mspx

6. eHealth Initiative Foundation Communication and Outreach tools and resources ~
 
http://toolkits.ehealthinitiative.org/communication_and_outreach/partnership_tools.mspx

7. eHealth Initiative Foundation Technology Principles ~ http://toolkits.ehealthinitiative.org/technology/default.mspx

8. Markel Foundation; Connecting for Health ~ http://www.connectingforhealth.com

9. United States Government , Department of Health and Human Services ~ http://www.hhs.gov

10. United State Government, Office of the National Coordinator ~ http://www.hhs.gov/onc/mission

11. Certification Commission for Healthcare Information Technology ~
Certification Commission for Healthcare Information Technology
.http://www.cchit.org/

12. Healthcare Information and Management Systems Society (HIMSS) ~ http://himss.org/ASP/index.asp

13. United States Government; American Health Information Community ~ www.hhs.gov/healthit/ahic

14. State RHIO Consensus Project; Final Report ~ http://www.staterhio.org/drafts/governance.asp


Patricia Dodgen is a Fellow of The Business Forum Institute.  Patti holds a BS, Financial Management (Cum Laude), Clemson University, 1977 and has broad experience as a senior executive in financial, technical, and operational management for various industries. She has specialized consulting experience in the telecommunications, broadcasting, print media, and computer technology fields. Currently, Patti is working on a national project to redesign the fundraising activities of a major non-profit client.  Her approach to business strategy and development evolved during her years with Dun & Bradstreet as a senior business analyst and with Digital Equipment Corporation (DEC), as a senior financial manager. At Dun & Bradstreet, Patti had the opportunity to closely examine and analyze the financial and operational successes and failures of a vast assortment of businesses of varying size within many industries. As a key senior analyst, she investigated, analyzed and developed conclusive responses to business questions for firms such as RJ Reynolds, Belk Store Services, Nucor and Bernhardt Industries. Patti is a frequent speaker at national conferences on the topics of complex change management, strategic positioning and "managing by the numbers". 


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