Healthagen’s Blog

Joseph Conn a HITS staff writer gives a succinct update on what may be in-store for the definition of “meaningful use” and electronic health records (http://tinyurl.com/lbfjlv). A clear definition will not be available until next year leaving those developing EHRs a bit in a lurch. Focusing on patient safety and quality is a safe bet.

Testing of systems will be costly for vendors ($30,000-$50,000), and less so for hospitals with the ability to perform modular testing of products ($5,000-$35,000). The modular testing mechanism will enable facilities to maintain legacy systems while adding on modules that fill gaps that are not covered by their present legacy systems. This mechanism will allow smaller organizations to avoid costly enterprise installments. Some vendors will defer up front costs with higher licensing fees preventing a large upfront capital payment.

The barrier for testing of physician practices will be low estimated to be $150-$300 per provider. This should help improve the adoption rates and hopefully curtail what is happening in Phoenix Arizona where physicians are de-installing EHRs after having one of the more robust adoption rates in the country (http://tinyurl.com/l5gy4n).

The McKinseyinformation below is clear evidence that the US needs some form of universal coverage. Senator Baucus (D-Mont), The Chair of the Senate Finance Committee, stated this week that any government overhaul of  health care would include coverage for 95% of all Americans, and he felt there was a 75% chance that significant legislation would pass this year http://tinyurl.com/o54bxo.

One of the big questions still to be answered is will this legislation include a public plan similar to Medicare that would compete with the private health insurance plans. Many are worried that such a plan would compete unfairly with the private plans reducing people’s options. Whatever direction is selected, new and innovative ways to produce true and immediate cost reductions are needed. Unfortunately many of the discussions around IT solutions will not produce any cost reductions for at least 3-4 years at substantial investment.

Chart Focus Newsletter May 2009
View on the web: http://www.mckinseyquarterly.com/newsletters/chartfocus/2009_05.htm

Health care and US income disparities

As US health care costs rise, so do insurance premiums and the amount of money employers spend on them—from 1996 to 2005, the average contribution rose by 5 percent a year in real terms, to $5,068. Some employers are rescinding health care benefits altogether, while others are limiting the number of eligible employees, so enrollment in employer-paid schemes is stagnating or declining, according to a McKinsey Global Institute study. This research also reveals growing disparities in the percentage of employees at different income levels receiving employer-paid health benefits: only 22 percent of employees in the lowest income group (earning an average of $14,800 a year), but 56 percent, 81 percent, and 89 percent of those in the lower-middle, upper-middle, and top income groups, respectively.

Check out my guest blog post at CareGiving.com http://tinyurl.com/cvjmc9 and learn how to help your elder care recipient recieve the best treatment during their emergency department visit.