Transcript Title
Health Information Technology Citizen’s Health Care Working Group Presented by Scott D. Williams, M.D., M.P.H. Vice-President, HealthInsight July 22, 2005 1 Overview • HealthInsight Medicare Quality Improvement Organization (QIO) with CMS contract for Utah and Nevada DOQ-IT Project Pilot • Promoting the use of Electronic Medical Records in small and medium primary care physician offices • Utah Health Information Network (UHIN) 12 years of successful administrative health data exchange • Claims, remittance, eligibility • Credentialing, coordination of benefits, EFT Regional Health Information Organization development grantee (AHRQ) • Labs, pharmacy, clinical notes and reports 2 Issues in Health IT • Value • Who benefits & who pays? • Efficiency • Outcomes • Standards • Self-regulated • Externallyregulated • Market driven • Technology • Architecture • Hardware/ Software • Connections • Support • Governance • Community interests • Privacy, security • Resource allocation 3 Health IT: Applications • Electronic Medical Record (EMR) Paperless office Personal Health Record • Health Information Exchange (HIE) Regional Health Information Org. (RHIO) Allows interoperability between stakeholders • Clinical Decision Support Systems (CDSS) Case and cohort management Computerized Physician Order Entry (CPOE) Prompts, recalls, trends, protocols, drug interactions, generics, performance measures 4 Value: Administrative Health Data • UHIN (17 million claims/year) Efficiency of Claims Processing by 1 adjudicator • • • • Paper Scanned EDI Autoprocessing 100-150/ day 300/ day 700-800/ day 60% of claims require no human involvement Payer value- just for intake of claim • Paper = $6-10/ claim • EDI < $1/ claim Provider value • Faster payments • Fewer rejected claims • Less staff time 5 Lessons Learned: UHIN • Champion- credible, neutral, trusted • Value accrues to all participants Drives priorities Drives business model • Community ownership & governance Consensus decision making • Standards driven • Use of data subject to governance process 6 Value: EMRs EMR Adoption Physician Offices 17% Hospital ER 31% Hospital Outpatient 29% CDC March 2005 HIMSS, September 2004 7 Value: EMR Adoption Barriers among Physicians • Initial Capital Cost (345/423, ms = 1.85) • Time Cost (323/423, ms = 2.74) • Confidentiality and Security Concerns (181/423, ms = 2.93) • Maintenance cost (300/423, ms = 3.00) • Interfere with doctorpatient communication • Concerns about learning new technology • Lack of technical support • Lack of control over decision • Lack of perceived benefits ms = mean score Massachusetts Medical Society Survey Spring 2003 8 Value: EMR Business Case for the Physician • Process efficiency (requires workflow redesign) Transcription Forms Telephone calls Information collection from patients • Lower overhead Fewer FTEs Less space needed for charts • Increased reimbursement Better coding & recovery More patients seen (if workflow changes) Pay for Performance 9 Value: EMR Business Case for the Physician Mean Benefit Low End High End Savings (paperless, capitated = 17%, Fee for service = 83%) $50,300 $21,800 $85,600 Costs, Year 1 (hardware, software, inefficiency, licenses, support, updates) $22,100 $13,700 $36,000 Costs, Year 2 + $5,300 $2,600 $9,500 Total ROI, Year 1 $28,200 $8,000 $49,600 Total ROI, Year 2+ $45,000 $19,000 $76,100 Wang, S.J. et al. 2003 10 Value: EMR Business Case for the Physician Wenner Georgia HIMSS Dec 2002 11 Value: EMR Business Case for the Physician Wenner Georgia HIMSS Dec 2002 12 Value: HIE • Automation of clinical processes • More timely, complete, accurate patient information at point of service • Efficiency of connectivity • Facilitate clinical decision support systems across communities 13 Value: HIE • Missing Patient Data 13.6% of primary care physician visits 52% of missing data resides outside of system 44% of data somewhat likely to adversely affect patients 60% of data likely to delay care or result in additional services More likely among recent immigrants, new patients, those with complex medical problems Less likely where physician has full EMR and also in rural areas Smith et al. JAMA. February 2005 14 RHIOs: “Wiring” Healthcare Efficiently Current system fragments patient information and creates redundant, inefficient efforts Hospitals Future system will consolidate information and provide a foundation for unifying efforts Hospitals Public health Primary care physician Laboratory Primary care physician Laboratory Pharmacy Pharmacy Public health Health Information Exchange Specialty physician Specialty physician Payors Payors Ambulatory center (e.g. imaging centers) Source: Indiana Health Information Exchange Ambulatory center (e.g. imaging centers) 15 Value: HIE • Based on published data and expert opinion • Interoperability Level 2 = Fax Level 3 = Machine-organizable data Level 4 = Machine-interpretable data • Net Value after full implementation Level 2 = $21.6 billion /year Level 3 = $23.9 billion/ year Level 4 = $77.8 billion/ year • Costs: Benefit Calculation for Level 4 Years 1-10 = $276 billion: $613 billion = $338 billion Year 11 + = $16.5 billion: $94.3 billion = $77.8 billion Walker et al. Health Affairs. January 2005 16 Value: Level 4 HIE • Contributions to the $94.3 billion benefit: Service categories Laboratory testing $31.8 billion Imaging $26.2 billion Provider-payer transactions $20.1 billion Chart transfers between providers $13.2 billion Pharmacy $2.71 billion Public health reporting $195 million • Contributions to the $16.5 billion cost Clinical office system cost $9.08 billion Hospital system cost $1.58 billion Provider interface cost $5.40 billion Stakeholder interface cost $467 million Walker et al. Health Affairs. January 2005 17 Value: Level 4 HIE •Where does $77.8 billion net value accrue (HIE Only)? Providers $33.7 billion Payers $27.6 billion Laboratories $13.1 billion Radiology centers $8.2 billion Pharmacies $1.3 billion Public health departments $94 million Walker et al. Health Affairs. January 2005 18 Value: Level 4 HIE • 50-200 Bed Hospital $2.7 million in IT investment $250,000/year in maintenance $1.3 million/year in transaction savings • • • • • $570,000 from other providers $200,000 from other laboratories $170,000 from radiology centers $250,000 from payers $70,000 from pharmacies Walker et al. Health Affairs. January 2005 19 HIE: UHIN Approach • Identify value-based priority use cases with interested stakeholders • Obtain broader stakeholder support • Develop and adopt technical model • Develop and adopt financing model • Convene standards development process • Adopt standards • Pilot, refine, implement 20 Value: CDSS Practice Variation “...risk-adjusted cost varied almost 3-fold...” Duke Clinical Research Institute 2002 “...cost of poor quality was...nearly 30% of the expense base...core medical processes that comprise the majority of what we do” Mayo Clinic “...72% drop in mean respiratory costs...” APAM 2000 30% 70% “...27% difference in cost of treating otitis media...” Ozcan 1998 “...20 to 30% of the acute and chronic care that is provided today is not clinically necessary...” Becher, Chause 2001 “...The cost of poor quality in health care is as much as 60% of costs...” Brent James, M.D., IHC. Project Hope, Wennberg et.al., 2003/HealthAlliant Annual U.S. health care expenditures: $1.7 trillion x 30% = ~ $500 billion “...30% of direct health care outlays are the result of poor-quality care...” MBGH, Juran, et al 2002 21 Value: CDSS CPOE • • CDSS 25% improvement in ordering of • corollary medications by faculty and residents (p<0.0001) Overhage, 1997 55% decrease in non-intercepted serious medication errors (p=0.01) Bates, 1999 • 81% decrease in medication errors (p<0.0001) Bates, 1999 • Improvement in 5 prescribing practices (p<0.001) Teich, 2000 6 of 14 studies showed improvement in patient outcomes. Hunt 1998 • 43 of 65 studies showed improvement in physician performance. Hunt 1998 • 17% improvement in antibiotic regimen suggested by computer consultant versus physicians (p<0.001) Evans 1994 • 70% decrease in adverse drug events caused by anti-infectives (p=0.02) Evans 1998 Source: Center for Information Technology Leadership, 2003 22 Value: CDSS 100% Medical Knowledge Treatment 50% of Cost 20% of Return Diagnostic Redundancy Patient Data Errors EMR Source: SBCCDE, CITL, Gordian Project analysis HIE CDSS 23 Value: Outpatient CPOE • Savings from nationwide adoption Adverse Drug Reactions = $2 billion • Eliminate 2 million adverse drug reactions • Eliminate 190,000 hospitalizations Medication management = $27 billion Radiology management = $10.4 billion Laboratory management = $4.7 billion Total = $44 billion Source: Center for Information Technology Leadership, 2003 24 Value: Who benefits? Who Pays? % of Savings Captured by Private Payers Medicare Medicaid 89% 11% Physicians Self-insured Self-pay Ambulatory Computer-based Physician Order Entry Source: Center for Information Technology Leadership, 2003 25 Health IT: Federal Government Roles • Facilitate the implementation of a national strategy • Support innovation experiments • Confirm business value and align incentives • Coordinate the implementation strategies of federal health care agencies • Assure the rapid development of data and technical standards with broad input • Assure that privacy and security regulations don’t encumber interstate health data exchange • Incentivize health IT savings to be redirected into effective health care interventions 26