Despite rising investments by venture capital firms, the health IT field as a whole is poised for no more than 5 to 10 percent growth this year, financial analysts who attended a panel discussion hosted by the Nashville Health Care Council this week predicted.
Factors conducive to continued growth include the impending conversion to ICD-10, the analysts said in remarks reported by Healthcare IT News. "I foresee a slightly better 2012, with the emphasis on slightly," said Darren Lehrich, managing director of Deutsche Bank Securities.
John Moore, founder of Chilmark Research, made a similar prediction in a blog post last month. "There will be plenty more [electronic health record] sales in the year to come, but over 2012 we will also see EHR sales growth begin to plateau and level off by end of Q4 '12," he wrote.
The main reason for these forecasts is that EHR sales have been driven by the government's financial incentives. To get that money, physicians and hospitals have to show Meaningful Use; and if they have not already implemented clinical systems, they're unlikely to meet the criteria in time to get the full amount of federal largesse.
However, there are other issues that could affect sales growth of individual companies in the next year or two. One is how much effect the Stage 2 Meaningful Use criteria will have on EHR vendors. If it is difficult to meet the certification requirements in Stage 2, some firms undoubtedly will drop out. That leads to the other question: Will the disappearance many of the current vendors boost sales of the surviving companies?
Even Stage 1 Meaningful Use undoubtedly has increased the big vendors' sales as physicians with minimal EHRs converted to more capable systems. But the market has already consolidated to some extent. Five vendors accounted for more than half of the Meaningful Use attestations last year, and some observers think that fewer than 10 companies own most of the market. If that's the case, the disappearance of many smaller firms won't have much impact on the survivors.
Nevertheless, venture capital firms see gold in health IT. They poured $633 million into the field last year, InformationWeek Healthcare reported. That was the highest amount since 2001, when they invested $759 million.
To learn more:
- read the Healthcare IT News story
- watch this video recap of the event
- see the Chilmark Research blog post
- check out an InformationWeek article on venture capital investment
- see an article on Meaningful Use attestation
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Some hospitals pay thousands of dollars more than others for big-ticket medical devices, according to Government Accountability Office (GAO) investigators, The Wall Street Journal reported. From defibrillators to hip replacements to drug-eluting stents, a portion of those higher costs are coming out of Medicare's pockets.
The report released today surveyed 31 hospitals and found, for example, that one hospital paid $8,723 more than another for an identical implantable cardioverter defibrillator, which typically costs between $16,445 and $19,007. The cost of stents varied by as much as $828 from the typical cost of $1,700 to $1,800 each.
The report "raises serious concerns over the prices hospitals and Medicare are forced to pay for implantable medical devices," said Montana Democrat Max Baucus, chairman of the Senate Finance Committee, who requested the GAO study.
The GAO report says lack of price transparency hampers hospitals' ability to be "prudent purchasers" of medical devices.
Device makers say their products represent only a small portion of the $2.8 trillion in annual health spending and that greater savings could be found elsewhere, according to WSJ. Although confidential price agreements are in part to blame, price transparency could increase costs by discouraging sellers from offering discounts, David Nexon, an executive vice president of the Advanced Medical Technology Association, a device trade group, told WSJ.
Drivers of medical device costs includes healthcare organizations' desire to look better than competing hospitals, as well as doctors who demand hospitals provide them with specific devices, even if identical but less-expensive models are available. The GAO report highlights that latter problem and said contracts between manufacturers and hospitals often forbid price disclosures even to doctors, making it harder to steer doctors to less-expensive options, according to WSJ.
In some cases, hospitals bound by such contracts resorted to using color-coded stickers to help doctors distinguish between cheaper or more expensive devices on stock shelves, the report said.
To learn more:
- read the WSJ article (subscription required)
- see the GAO report (.pdf)
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Computerized tests used to determine whether football players and other athletes can return to competition following a concussion aren't always reliable and arguably are relied upon too much, a study published this week in the Journal of Clinical and Experimental Neuropsychology concludes. The study's authors, according to an announcement, find that some tests don't measure functional and metabolic impairments of the brain. What's more, cognitive performance measured by the most scientifically-validated of the tests currently being used--Immediate Post-concussion Assessment and Cognitive Testing (ImPACT)--usually normalizes within three weeks of a concussion, according to the authors, but that doesn't necessarily mean the injured athlete being tested is fully healed. Additionally, they say, such tests can actually harm recovery. Announcement
The intrepid hospital and physician office pioneers leading the charge toward accountable care organizations have learned some key lessons about IT--its role, its limitations and its challenges.
A recent article published in Health Data Management delves into the topic with gusto. It covers a lot of ground, but for CIOs, there are some specific, important tips worth following to help as you evaluate the ACO path for your own institutions, including:
Data exchange: You can't do without it: The Northern Adirondack Region Medical Home Project, based in Plattsburgh, N.Y., has connected electronic health records for its 26 group practices, five hospitals and nine payers to a statewide regional data exchange, according to the HDM article. The EHRs do some of the heavy lifting--allowing doctors to order lab tests, view results and prescribe meds. But the data exchange helps docs keep track of their patients outside their own practice, giving them access to hospital discharge summaries, ER visit records, and medication lists from other providers, the story explains.
It's a daunting task, though, and one that took more than 18 months to get all the interfaces built, testing completed, and bugs worked out.
Data exchanges can have unexpected benefits, too. For example, health information exchange group Michigan Health Connect has turned its data exchange into a central communications/referral hub, HDM reports. More than 200 physician offices are tied into the system, and using referral forms the HIE added to the platform, they now can search for referring physicians, and even complete and forward the referral paperwork online.
Technology needs to automatically update MDs on patient admissions: Any worthwhile ACO will have to give physicians tools to know where their patients are receiving care. In particular doctors need to be notified immediately when a patient presents at the emergency room, so they can help manage the incident. Cox Health Plans, which has applied to participate in an ACO-like bundled-payment program under Medicare, is testing out a "virtual hub" technology for just this purpose, alerting physicians to ongoing exacerbations, HDM reports
Vendors, payers may not be on board: The biggest IT obstacle to an ACO's technology progress isn't always the hospital's budget. In some cases, proprietary vendors aren't willing to put in the time or money to interface or integrate their systems with other multi-system exchanges. Heidi Moore, a member of the Northern Adirondack project's executive board, admits her practice's primary EHR vendor wouldn't create an interface to the state HIE. The result: "Our former vendor had no national vision," she tells HDM. "We had to make a horribly difficult choice to drop them."
Payers, too, may be late to the ACO party, technologically speaking. Our sibling publication, FierceHealthPayer revealed a few weeks ago that insurers are years behind in upgrading their core IT systems. A new study showed that while half of payers want to participate with new business models like ACOs, more than three-quarters say they can't do it from a technology standpoint.
Home monitoring tops IT wish lists: One big technology gap that could sink ACOs is at-home monitoring of chronically ill patients, Jim Adams, managing director of The Advisory Board, tells HDM. In particular, it will make patients more accountable for following their treatment protocols, and adhering to diet, medication or other regimens--all of which are important to keep outcomes high. "Accountability will be pushed out to the patients," he says.
For just this purpose, Richard Lopez, CMIO for Massachusetts ACO Atria Health, recommends ACOs include a patient portal where patients can request prescriptions and appointments and view lab results--all as ways to keep them engaged in their care.
To learn more:
- read the Health Data Management article
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After more than a year of development, a group of business students at University of California, Merced, are launching the first test of their Valley Telehealth Program.
The pilot will focus on women with gestational diabetes in the Central Valley region of the state. Overall diabetes rates there are 9.4 percent, several points above the 7.8 percent average for the rest of the state, according to a report in CaliforniaHealthline.
The project is starting in Dos Palos, a small town near Merced, Calif. Study participants will be given at-home glucose monitors that can transmit their testing results to physicians. They'll also have e-visits with physicians, including specialists, about gestational diabetes, diet, nutrition and other topics, rather than traveling the 30 miles or more to the physician's office.
There certainly is precedent for telehealth to shave costs for diabetic patients. We reported on a study in the journal Health Affairs last fall that found telehealth interventions, substituted for clinic-based care, cut costs an average of eight to 13 percent.
Another, far larger, study in the U.K. showed that telehealth could cut ER visits by 15 percent, and ER admissions by 20 percent.
Data from a pilot in Oregon found reducing a patient's need for transportation to and from physician visits, is low-hanging fruit for a telemedicine program. That state's OHSU Telemedicine Network reported saving patients and insurers $500,000 in transportation costs over a two-year period.
Interestingly, the VTP program isn't being run by a healthcare organization, but by business students with the university chapter of Students in Free Enterprise. SIFE is a global nonprofit organization that encourages its students to use business concepts to create sustainable projects for underdeveloped regions of the world, according to Healthline.
If the pilot succeeds, students plan to expand it to the entire Central Valley. "The statistics in the Central Valley are comparable to a third-world country," Jared Calinisan, a UC-Merced business major and SIFE project manager, tells Healthline. "By targeting [these] patients and helping them prevent those complications, it also cuts down on fees for hospitals."
The pilot is working through regional medical centers Mercy Medical and Merced Diabetes Center. At least six other hospitals in the Valley have been set up with high-speed connections and telehealth equipment, however, and may ultimately join in the larger project.
To learn more:
- read the CaliforniaHealthline article
- get more detail from the VTP website
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The Cleveland Clinic goes straight to the front of the class for its website--but Mayo Clinic gets it knuckles rapped.
In a "website smackdown," Inc. magazine examines the online presence of two healthcare giants and finds that one "understands its target audience and serves that audience's needs extremely well [while] the other just doesn't get it."
The article is a good reminder that healthcare organizations must design websites for their customers--not for themselves. Although hospitals and health systems often highlight information about world-renowned research, details about fancy imaging and robotic technology, or photos of beautiful buildings, site visitors are much more likely to be looking for quick answers to key information, such as phone numbers, directions and visiting hours.
Rochester, Minn.-based Mayo Clinic falls down in this category, Inc. notes.
"There is virtually nothing on the homepage that is designed to help patients, families of patients, or people looking for assistance from the hospital," the article says. "After much searching, you can find (in a tiny font and in a sub-navigation) 'Request an Appointment' and 'Find a Doctor.' What you won't find is a phone number, directions, or anything else that might be of real use."
Ouch.
The primary navigation on the Cleveland Clinic site gets much better marks for clearly leading visitors to contact information, locations and directions, doctor search, appointments and patient and visitor information, Inc. says.
Ohio-based Cleveland Clinic emerges the winner in health information and find-a-doctor features, as well.
Inc. magazine's opinion notwithstanding, both organizations are well-regarded in the healthcare field for their efforts in online communications, including social media.
Earlier this year, Mayo Clinic, which has its own social media network and has hosted three annual healthcare social media summits, earned the top spot on a list of 20 healthcare organizations with "inspiring" social media strategies.
But the two clinics are hardly the only healthcare organizations to get poor marks for website design.
A recent study by The Journal of Healthcare Management, for example, assessed U.S. hospital and health system websites' performance based on accessibility, content, marketing reach, technology, design and maintenance--and found them wanting.
The mean overall score for the U.S. health systems included in the study was 6.37 on a 10-point scale, indicating that hospital and health system websites have significant room for improvement, Eric Ford, the Forsyth Medical Center distinguished professor at the University of North Carolina-Greensboro and one of the study's authors, wrote.
Neither Mayo Clinic nor Cleveland Clinic made it into the study's list of the top nine sites.
To learn more:
- read the full Inc. magazine comparison of the Mayo and Cleveland Clinic websites
- see the Eric Ford's healthcare website research summary
- learn more about 20 hospital and health system social media strategies
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In describing ICD-10 for a recent Hospitals & Health Networks commentary, Albert Oriol, chief information officer at Rady Children's Hospital San Diego, says that healthcare executives "only wish" the process was comparable to the buildup of Y2K. "Unlike Y2K ... the effort isn't relegated to the IT back office. This time, massive education will be required of IT's customers along the revenue cycle, which, let's not forget, begins with clinical documentation." Regardless, Oriol recommends taking a positive approach to the implementation. "Call me a control freak, but I'd rather get the pieces we can control in order," he says. Commentary