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Maximizing IT Value
Towards Clinical Transformation
Health-e-NationMelbourne, Australia
24 March 2004Dave Garets, FHIMSS
Executive Vice President
Healthlink Incorporated
Slide 2
Agenda
Key business drivers in healthcare IT State of the industry What drives CEOs and CIOs to invest in
technology? The disconnect between vision and execution Thoughts on achieving IT success The path to Clinical Transformation
Slide 3
Key Business Drivers in Healthcare IT
Error rates are too high Quality is inconsistent Research results are not
rapidly used Costs are escalating New technologies continue
to drive up costs Demographics of baby
boomers will greatly increase demand
Capacity for early detection of bioterrorism is minimal
Slide 4
State of the Industry
In the United States:• Budgets are increasing for IT – from $34B in 2001 to $48B in
2006 (healthcare IT spend according to Gartner)• Irreversible trend towards clinical computing• Satisfaction with results are declining – few examples of
positive ROI• Vendors are starting to deliver applications that work• Government pushing NHII• Infrastructure is taken for granted – it’s a commodity
In Britain:• The great experiment is on to the tune of $13-$15 B• Vendors are now trying to figure out how they’re going to
succeed
Slide 5
State of the Industry
In Australia:• Focus on managing clinical information (absent clinical
systems) increasing rapidly– HealthConnect– MediConnect– Quality and Safety agenda
• Facing the same dilemmas as sister countries– The “record” is paper or at best images– Clinicians can’t share information– Inadequate access to knowledge, patient records– Very few hospitals with clinical IT– Even general practice could be using clinical IT more effectively
• Most public hospitals are implementing patient management systems rather than advanced clinicals at this point
• EHR=summary data, not full record
Slide 6
CEO/CIO Rationale for IT Investing
“Transformation of healthcare delivery” will never happen without IT
IT is the only way to increase efficiency and effectiveness and ensure efficacy of clinical activities
Patient safety is a huge public relations issue Spiraling costs are not sustainable Consumer demand for participation, information is not
subsiding Demands for accountability becoming deafening
Slide 7
Principal purpose of IT = Value creation,
not overhead cost reduction.
“…the principal purpose of investing in IT is not overhead cost reduction but value creation. Cutting costs can contribute to profitability, but in the long run one does not prosper through shrinkage. The objective of all investments should be to improve overall organisational performance.”
Paul StrassmannThe Squandered Computer
What the Winners Know?
Slide 8
Disconnect between Vision/Execution
Too much hype from vendors, early adopters, pundits for under-educated buyer community
Expectations not correctly set Too many stakeholders with conflicting incentives, desires Not enough rational thought/solutions Pendulum has swung too far
• Replacing systems rather than optimizing existing ones• Wholesale replacement of best of breed with single vendor
Nowhere near enough attention to process redesign
Slide 9
Transfer/Discharge
DocumentProvideCare
DeliveryOrder
Admit &Begin Care
Schedule &Pre-register
CompleteRecord& Code
Bill &Collect
Schedule
ContractMgmt.
Register/Admit
CreateMedicalRecord
AssessPatient
GenerateOrders
ReceiveOrders
Provide Care
DeliverServices
EvaluateCare
GenerateResults
Transfer/Discharge
CaptureCharges
Bill
Collect
Pa
tie
nt
Ac
ce
ss
HIM
Pa
tie
nt
Ca
reP
atie
nt
Fin
anci
als
Car
e A
nal
ysis
OutcomesAnalysis
Clinical Decision Support
CompleteRecord
Process
Technology
People
Three Elements of IT Success
Slide 10
The Path to Clinical Transformation
Knowledge base of clinician memories, journals, registries, paper patient records, images, and some digital data
Health continuum process redesign
Computer assisted clinical, financial, administrative workflows
Normalised repositories
Decision support
Standards, identifiers, IT protocols, standard nosonomy
UI and Access
Slide 11
The Path to Clinical Transformation
Knowledge base of clinician memories, journals, registries, paper patient records, images, and some digital data
Health continuum process redesign
Computer assisted clinical, financial, administrative workflows
Normalised repositories
Decision support
Standards, identifiers, IT protocols, standard nosonomy
UI and Access
Healthcare Financing Mechanisms
WorkforceAvailability
ConsumerExpectations
Clinician adoption and utilisation of IT
Patient safety
Political cycles
Tort reform/medical indemnity insurance
Expense!
Ageing population/increased
demand
GPs are ahead of the game
Slide 12
The Path to Clinical Transformation
Knowledge base of clinician memories, journals, registries, paper patient records, images, and some digital data
Health continuum process redesign
Computer assisted clinical, financial, administrative workflows
Normalised repositories
Decision support
Standards, identifiers, IT protocols, standard nosonomy
UI and Access
HealthConnect
Internet
iSoft, IBA, Cerner et. al.
Accenture, CGE&Y,Healthlink, et. al.
Governments, standards bodies
Maximizing IT Value
Thank
Healthlink Incorporated3800 Buffalo Speedway, Suite 550
Houston, Texas 77098
1.800.223.8956
www.healthlinkinc.com
You