Electronic Medical Records: How to Prevent the Creation of a Costly High-Tech Tower of Babel

Manuskript von Aelfric dem Grammatiker, Szene: Der Turmbau zu Babel

Steve Lohr of The New York Times has written an article, “How to Make Electronic Medical Records a Reality” (a follow-up to “Health Care That Puts a Computer on the Team” 12/26/08) that it is well worth taking the few minutes requisite to read it.

Professors Sharona Hoffman & Andy Podgurski have published an article in the Harvard Journal of Law & Technology that should be on Obama’s nightstand. “Finding a Cure: The Case for Regulation and Oversight of Electronic Health Records” will take more than a few minutes to read, but for those charged with the responsibility of making the prospect of Electronic Medical Records a reality, it should be required reading–because, as the authors point out, we simply cannot afford to get this wrong:

The benefits of EHR systems will outweigh their risks only if these systems are developed and maintained with rigorous adherence to the best software engineering and medical informatics practices and if the various EHR systems can easily share information with each other. Regulatory intervention is needed to ensure that these goals are achieved. Once EHR systems are fully implemented, they become essential to proper patient care, and their failure is likely to endanger patient welfare.

The Journal article is essentially a map, designed to point out hazardous terrain and harness the resources at hand to effectuate a comprehensive Electronic Health Record system– and, through interoperability and regulated standards, to prevent the creation of a costly high-tech Tower of Babel. As the authors remind us, in this territory, malfunction and miscommunication can be deadly–and the concerns of the market are not necessarily coextensive with the common weal.

For those of us who have an interest in the subject, and are convinced that it is essential to have a comprehensive guide (if not a blueprint) for “how to get this right” — take heart–it’s here, and I highly recommend you take the time to read it–and then pass it on and up until it reaches that nightstand, if it’s not already there.

How to Make Electronic Medical Records a Reality

The NY Times article depicts the paucity of EMR use at present (17%) in terms of  ”market failure,” and points out that U.S. Government guidance and investment in growing (”jump-starting”) industry and technology is not novel. Lohr writes:

…computer technology and the industry really flowered in the United States. That happened in no small part because the federal government nurtured the market with heavy investment, mainly by the Defense Department, and by choosing standards, like the Cobol programming language.

Today, Washington is about to embark on another ambitious government-guided effort to jump-start a market — in electronic health records. The program provides a textbook look at the economic and engineering challenges of technology adoption.

Lohr correctly points to the chasm which exists in EMR usage between large practices and small, and the failure of the market to incentivize further usage by doctors in these smaller practices. Lohr states:

These larger groups have the scale to invest in information technology, and they are often insurers as well as providers, so they benefit directly from the cost savings. Yet these large groups are the exceptions in American health care. Three-fourths of the nation’s doctors practice in small offices, with 10 doctors or fewer. For most of them, an investment in digital health records looks like a cost for which they are not reimbursed.

It is that “market failure,” says Lohr that the Obama plan seeks to address. To that end, the legislation which has devoted $19 Billion towards this “jumpstart,” “calls for incentive payments of more than $40,000 spread over a few years for a physician who buys and uses electronic health records.”

The legislation also requires that this payment to doctors be in exchange for “meaningful use,” but thus far the term has been left undefined.

We addressed both of these concerns on this blog in mid-January in response to a post on Health Affairs by Dr. David Brailer, Chairman of Health Evolution Partners, a health care investment fund. Read more

Two New Reports Look at Increases in Health Care Spending

Photo by whatadqr via Flickr

The Wall Street Journal reports that CMS estimates overall U.S. health care spending will reach $4.35 trillion in 2018, accounting for one-fifth of GDP. The findings by CMS were published Tuesday in the journal Health Affairs. In 2009, U.S. health care spending is expected to reach $2.5 trillion, a 5.5% increase from 2008.

The CMS study expects government health care spending to increase by 7.4% to $1.19 trillion this year. However, the study forecasts that, by 2016, the government will pay for more than 50% of total health care spending. The increase in government health care spending is expected to come from baby boomers enrolling in Medicare and increased enrollment in Medicaid.

Meanwhile, The New York Times reports that Medicare spending continues to vary widely across the U.S., according to a report to be published today in The New England Journal of Medicine.

According to The Times, Dartmouth researchers found that:

The regional differences in the growth of Medicare spending suggest doctors are helping to drive up costs when they more frequently order tests or admit patients to the hospitals. In areas where there are plenty of hospital beds and sophisticated imaging equipment available, doctors generally spend more on their patients.

Dr. Elliott S. Fisher, the director of the Center of Health Policy Research at the Dartmouth Institute for Health Policy and Clinical Practice and one of the work’s authors, told The Times that:

[A]ny attempt to rein in health care costs . . . needs to address how doctors and hospitals are paid, where they are rewarded on the basis of the volume of services they perform.

Read more

WaPo on Medical Cutbacks

Three years ago our own John Jacobi warned of “Dangerous Times for Medicaid.” At the time the main threats were ideologically driven; now state budget cuts are doing the damage. As Amy Goldstein notes in the WaPo, the situation is critical:

With revenue falling at the same time that more people are losing their jobs and private health coverage, states already have pared their programs and many are looking at deeper cuts for the coming year. Already, 19 states — including Maryland and Virginia — and the District of Columbia have lowered payments to hospitals and nursing homes, eliminated coverage for some treatments, and forced some recipients out of the insurance program completely.

It’s one more sad example of the procyclical nature of federalism here–states have less tax revenue during recessions, when need is greatest. No one should be surprised if more and more of the jobless uninsured, denied even basic dental care due to such cuts, fall into a “death spiral” of unemployment, disfiguring ailments, and a tendency to be underemployed due to such ailments.

PS: The WaPo has a nice Medicaid aggregation page.