An HIT Moment with ... is a quick interview with someone we find interesting. William O’Toole is the founder of O’Toole Law Group of Duxbury, MA.

The following are my top three suggestions for negotiating HIT software licenses.

Say what you mean and mean what you say

Determine up front what is truly important to your organization. Establish your contract priority list prior to negotiations. Include as much input as possible from the CIO, CFO, CEO, consultant, and legal counsel. The more complete your list is up front, the better the vendor can establish what it must deal with to land this new customer.

Don’t label something a deal breaker if it is not. Many times I gained the upper hand after responding negatively to a supposed deal breaker issue, only to have the prospect roll on it. Do identify your priority list up front. It does not have to be detailed or extensive. Get the message across early and put it on the table for all to see. Refer to it as revisions are turned. If the vendor does not address an item, raise it immediately.

Identify who is driving the bus

On the customer side, it is usually the CIO or CFO. Establish early and keep this person informed and involved. Others may handle conference calls and meetings during negotiations, but having the person in authority identified helps immensely. Have the vendor identify the individual in charge of negotiations, even if that person is not involved in each conference call or meeting. If things get rough on a specific issue, it may be helpful to have the two “drivers” talk directly after being brought up to speed by their respective sides in order to cut out all the dancing and grandstanding and get right to the issue. Marching orders can then be given back to the negotiating teams.

Do not dictate the terms by which you expect the vendor to license you their software

Setting the stage in this manner only creates an adversarial process, which is not what you want. It sets you up to become just another sale where only the money counts. Approach it as a relationship in the making. Know what you want (see above) and present a priority list, but do not dictate terms or you will get far less cooperation and poor results and ultimately be left unhappy with the deal.

Vendors always talk about being partners with their customers. If you were representing the customer in crafting such an agreement, what terms would you consider essential to truly aligning the vendor’s interest with theirs?

This is a really good question. The term “partner” is way, way overused. Unfortunately that really dilutes its importance. The ultimate indicator of partnership is sharing, whether it be capital investment, development effort, or risk. HIT vendors all thank their customers for choosing them as their HIT partner. But are they really partners? If a vendor truly wants you as a partner and not just its next customer, then you should realize real benefit in at least four major areas.

Payment for performance

If establishing a true partnership, then there should be a willingness to include terms reflective of such a position. Progress payments should be tied to measurable or identifiable events. Further, there should be a willingness to delay or forego (in some specific amount) payments if the events are not met.

Exposure

Government regulations, public entity constraints, and potential liability are prime examples of areas in which a partnership can be created as opposed to a strict customer/vendor transaction relationship. How much is the vendor willing to do or risk for its customer? The more the vendor risks, the more of a partner your organization becomes.

Near term and long term costs

Nail down the cost of acquisition and implementation. The customer partner should have absolute comfort in the cost outlay for the project. Not to the dollar, obviously, but certainly a solid figure assuming no significant deviation in the project. Long term costs should be predictable and you should never pay twice for the same product.

Development

The vendor may find your business of such importance that they are willing to offer you the opportunity to be a beta site or to provide input on development of a key area of software functionality. These opportunities can have both good and “not so good” ramifications. Weigh the pros and cons carefully. While this is a very strong indicia of partnership, it can be a tremendous amount of work for the customer.

Some people think putting performance penalties in contracts starts off the vendor relationship on rocky footing, while others say the only way to get a vendor’s attention when problems arise is to hit them in the checkbook. Should software contracts include penalty terms?

With regard to the initial implementation process, there should be no need for penalties if payments are based on attaining measurable milestones during the implementation (see above). This puts a positive spin on the issue. Pay the vendor for work done as planned. You arrive at the same result, but in my scenario, money is due when work is done, rather than the negative approach where money is not due because work was not done. With regard to ongoing support, it gets a little tricky. If you applied my implementation scenario, full payment would be due only if there were no issues in the service period, not a realistic scenario for any vendor.

So it could be argued that penalties make sense in the ongoing support situation. That said, it only adds another layer of work for the customer and the vendor, which is not something a CIO wants. Ultimately the CIO and CFO will withhold payment if things go really bad, so work with that concept. Negotiate the ability to withhold (delay) support payments in good faith if good support is not provided. Put the work on the vendor. If the vendor’s accounts receivable personnel are looking for payment and the customer reports payments are being held due to support issues in accordance with the contract, then those receivables folks will go to the vendor’s support personnel, which will escalate issues on the vendor’s side with little input from the customer.

In short, I believe that with regard to ongoing support payments, the time spent on identifying penalty situations and associated dollar amounts to be credited is better invested in personnel involved in resolving the underlying problems or issues.

Porter Hospital is involved in lawsuits involving the transfer of software rights to an acquiring organization. How often do disputes over legal ownership and transfer rights occur in healthcare and how do vendors look for noncompliance?

Fortunately I did not experience many disputes in this area during the past two decades. I use the word “fortunately” because these situations are fairly straightforward and end up costing the hospital(s) money.

That said, my experiences all demonstrate that the licensees did not do their homework. Transfer restrictions are not complicated and all vendor agreements have some language clearly stating what is permitted and what is not. Most often these matters involved spinning off a single hospital from a multi-facility license, or the acquisition of a hospital operation from a bankruptcy proceeding. I do not want to come across as preaching from on high, but in any divestiture situation it is incumbent on the parties to do a thorough job researching the items to be transferred, and I did intend to use the term “parties”. If I were on the acquiring side, I would absolutely review all the pertinent documents to make sure everything was in order. Time spent up front is far cheaper an investment than time spent in resolving a later conflict.

As for how vendors look for non-compliance, in the case of my former employer, we found that these matters usually have a way of popping up without extensive watchdog action. For site licenses, it is fairly obvious when the customer calls for assistance setting up a new facility or troubleshooting software tied to a formerly unrecognized facility. In situations involving machine licenses, the trigger is often the request for technical support for unauthorized hardware or for an upgrade or addition of hardware. User licenses may be the ones that go unnoticed unless the vendor routinely performs audits.

In my opinion, the licensees in these situations are not (in nearly all cases) maliciously trying to beat the vendor out of a fee, rather they just are not familiar with the restrictions on their systems. Once again, I suggest that being vigilant up front is less costly for the customer.

What’s it like leaving a corporation to set out on your own?

Daunting, yet comfortable. During the past 20 years negotiating HIT agreements as MEDITECH’s Corporate Counsel, I interacted with thousands of healthcare executives, attorneys, and consultants and experienced an amazing array of perspectives from healthcare entities, ministries, and governmental agencies throughout the United States, Canada, and beyond.

As I considered the next 20 years of my life and career, I realized that there are very few individuals with more experience than me in this practice area. Coupling the confidence MEDITECH management had in my work and the authority they gave me with the compliments I received from healthcare executives at the conclusion of countless deals, I realized that the prospect of establishing my own law firm demanded strong consideration.

Although it was difficult to leave MEDITECH after so many years, I decided that I would be successful and would do well for myself and my family by offering my services to the healthcare industry. It was very telling for me that just prior to my departure from MEDITECH (once the word got out that I was leaving) I had several contacts from entities seeking to retain me once I established my practice. So although no reasonable person would be without some concern in my situation, I am carefully confident that I will succeed.

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From HITMan: “Re: EMRs. Regarding the Wharton professor’s comment about the value (or lack thereof) of EMRs, is it possible that our entire industry is missing the point? I admit that in their early years EMRs were sold as differentiators, cost savers, and patient care improvers (is that a word?). Today, however, the benefit of EMRs that no one is discussing is the knothole effect. Essentially, if we pull all physicians and nurses through the same knothole and force them to operate in the same way, we have not improved patient care, but we have standardized care in a way that when the healthcare system makes an evidence-based medicine change, it improves the performance of all clinicians simultaneously. In the old world, modification one one physician’s behavior modified one physician’s behavior. In an EMR world, changes to physician processes force all EMR users to operate in the same way. Variation is the enemy of perfection.” I would agree, other than the fact that medicine as a science is far too primitive to prescribe the “one right way” (as I always say, we’re good at observing, correlating, and creating confident-sounding names for stuff, but tentative and inconsistent on being able to do anything with that information to improve outcomes). I like the idea of getting new research into the field, a problem that hasn’t been improved with EMRs, so I’ll agree that some form of central-oversight-by-EMRs could do that. Or, on a less contentious level, at least fully defining the extent of practice variation in real time and alerting physicians of areas for improvement. That would be a cool social networking app: have docs post cases (auto-populated and de-identified from the EHR) so that peers could weigh in as a mass consult.

From The PACS Designer: “Re: RFID. Coca Cola, one of the best-run companies in the world, has developed an RFID-enabled beverage dispensing machine for fast food outlets and restaurants. The system uses flavor cartridges similar to print cartridges to mix up to 100 drink combinations directly from the mixing mechanism in the dispensing machine. At the same time, it uses RFID to send information to Coca Cola about customer preferences each day for analysis. InformationWeek has an article in their most recent issue explaining how instant mixing for drinks was devised by copying the anesthesia treatment methods used to dispense precise amounts of drugs to patients.”

From Brian D: “Re: WWMR. IntrinsiQ LLC acquires consulting company WWMR out of San Mateo, CA.” IntrinsiQ is the company behind the online chemo dosing application IntelliDose. WWMR is a marketing research company that offers product assessment and economic forecasts to oncology drug companies. Sounds like the idea is to package up all the chemo ordering information collected by IntelliDose and sell it to drug companies. Did you ever get the feeling that the healthcare industry secretly lets the drug companies do whatever they want just to provide a potential purchaser of newly developed technologies and startup companies? Every HIT business plan somehow seems to revolve around getting money from either the government or the drug industry, both of which have the sometimes-abused power to print money.

A reader claiming to be a physician from a Pittsburgh hospital says a recent clinical systems upgrade is causing major problems with medication administration. He/she adds, “I bet you will not publish this because [vendor] is a platinum sponsor of your site”. The reader does indeed seem to be from a Pittsburgh hospital, but I’m not comfortable running the vendor’s name without verification (by the way, the vendor in question is not an HIStalk sponsor). More information is welcome from non-anonymous sources (I’ll leave your name off the posting, but I need to know who I’m quoting).

Miguel Perez III, former IT director at Driscoll Children’s Hospital (TX), is promoted to CIO of its health plan.

Grammatical gripe: “take a vitamin everyday” is wrong. Everyday as a single word is an adjective; otherwise, it’s “take a vitamin every day.” And, when you preface someone’s name with Dr., it is incorrect to put their credentials afterward, such as Dr. John Smith, MD (I call that “academic bookending). Thanks for listening to me vent.

Andy, HIStalk’s official source of odd news, finds this gem: an 18-year-old science student self-diagnoses her Crohn’s disease, finding abnormalities in a slide of her own intestinal tissue that a pathologist had missed.

I admit I’m miffed after I think about this timeline. Conaway introduces his “make non-CCHIT EMRs illegal” bill on May 11. Reader Chip tipped me off, so I found the text of the proposed bill and wrote it up on June 5. Other sites and rags started reporting it as hard news on June 6, linking to the bill’s text with the same link I’d used. I think timing makes it obvious where they got their information, but a credit would have been nice. Finding stories is harder than it looks.

Pharmacy automation vendor Talyst, fresh off $8 million in new funding and finding entrenched competitors blocking expansion of its hospital market share, wants to expand into nursing homes and prisons. 

I’m interested in PDF Healthcare and asked some folks who are involved to consider putting some kind of short overview together. They overachieved – Steven Waldren, MD, MS, director of the Center for Health IT for the American Academy of Family Physicians, did an 11-minute slide overview (complete with his own casual narration) just for HIStalk’s readers. If you ask me, that’s the perfect way to teach people, not one-hour platform speeches or boring white papers.

McKesson’s Community Days volunteer project will benefit Grady Health System (GA), which will receive 250 packages of blankets and toiletries for patients in its rehab and LTC facility.

Australia struggles with the decision of whether an e-prescribing network will be owned by the government or a private firm.

Striking doctors in India block public streets, annoying the locals.

Odd: a patient being seen in a doctor’s office walks out afterward with the doctor’s laptop. He beat the odds by finding a laptop-using practice in the first place.

I ran across the Institute for e-Health Policy, yet another political organization within HIMSS (actually, buried a layer deeper as part of the HIMSS Foundation). It was founded a year ago. Its stated goal: “To be the pre-eminent organization to provide e-health policy education, research and best use examples to key decision-makers, their staff, and other stakeholders within the Capitol Beltway.” I don’t see any accounting of salaries in the Foundation’s financials, so I’m not sure how it’s funded. It runs National Health IT Week, in which providers are somehow convinced to take time off from work to lean on their legislators to pass vendor-enriching laws.

Related: the PHI-containing laptop of an Oregon Health & Science University doctor is stolen from his car parked at home.It was password protected, at least.

The consultant who billed eHealth Ontario for tea and Choco Bites leaves instead of hiring on full time as she had planned. She got shafted if you ask me: her expenses followed policy and they were approved for payment. It’s hard to get excited about a couple of dollars worth of snacks in the grand scheme of what was going on there.

Interesting: a video game executive predicts that fitness games will integrate with EMRs. “The ultimate customization is a video game that you just turn on and it goes, ‘Hey, Ben, I noticed your doctor would like you to eat less trans-fatty-whatever. You go to your doctor’s office and your doctor has your EA Sports Active profile and says, ‘Hey, you’re doing really well.’”

Bayonne Medical Center (NJ) locks out union employees, which the online site calls “flaunting labor laws” (which means displaying them proudly) instead of “flouting labor laws” (meaning disregarding them). Sorry about the grammatical fixation.

Park Ridge Hospital (NC) upgrades its surgery and OB facilities, including adding flat screen TVs so patients can access the Internet and the hospital’s GetWellNetwork for education and communication with staff.

Maryland’s state medical society wants the AMA to convince the federal government to drop plans to penalize doctors for not adopting electronic medical records.

The wife of Senator Chris Dodd, one of the people leading the charge on healthcare reform, sits on the boards of three drug companies and a senior living center and received several hundred thousand dollars of benefit in the last year. His spokesperson says don’t worry about it, her career is separate from his. Named in the same article is Senator Jay Rockefeller, who reported capital gains on his wife’s stock sale of athenahealth and who serves on a board with several executives of healthcare-related organizations, and several other members of Congress who have a financial stake in drug, insurance, or for-profit hospital companies.

Odd legal maneuver: University of Pittsburgh Medical Center, being sued for the death of a woman who wandered from her room and died on the roof of one of its hospitals, defends itself by claiming that it doesn’t run hospitals or employee healthcare professionals. UPMC’s lawyers say it’s a holding company that isn’t responsible for the actions of its individual hospitals, which are separate corporations.

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From Whistler Ski Gal: “Re: Grady. Grady Hospital has not awarded the contract to Epic – they have only been selected. Negotiations have slowed down. Community leaders, politicians, and board members are challenging the total cost of ownership that was approved initially by the board. Apparently only a three-year cost for acquisition was provided, not a TCO over 5-7 years.” One of the rags ran a piece saying the contract had been signed, but maybe they messed up since that story was dated from when the initial announcement was made.

From BlueDogSpirit: “Re: CCHIT. I would like to see a poll regarding what you just commented on, whether CCHIT Chair Mark Leavitt and CCHIT Trustee Chair (and HIMSS CEO) H. Stephen Lieber should step down from their respective roles at CCHIT. Keep up the good work! I enjoy reading your column first thing in the morning with a cup of coffee. I only wish I had known about your column last year. I know have missed so much.” Enrobing your request with flattery is a solid strategy, so consider it done. New poll to your right.

From Needs_Gas: “Re: Noesis Health. It appears Santa Rosa Consulting has acquired them.” True. Inga found this June 9 announcement (warning: PDF) announcing the acquisition. Santa Rosa Consulting is run by mostly former Superior Consultant people (including former CEO Rich Helppie) and former FCG COO Tom Watford. Noesis did consulting and integration work.

From Someone: “Re: Merge Healthcare. Anything on laying off support staff in Toronto?” A stock message board posting says the whole group was laid off, but it’s hardly authoritative. Inga reached out to the Merge folks and received this message from the chief marketing officer: "Thank you for giving us the opportunity to clarify this information. Merge Healthcare opted to consolidate support functions for its Fusion product line to better serve those customers. As a part of this process, some job functions were moved from Toronto to Milwaukee. This is not a reduction in force for the company."

Norman Regional Health System (OK) turns the IT function over to COO Greg Terell.

Philips is named the official medical equipment supplier of the New York Yankees, providing digital radiology for its players ($201 million a year worth, with 14 players making more than $5 million a year). People actually go into dumb stuff like teaching or medicine instead of playing games and charging those same teachers and doctors dearly to sit and watch them. I obviously don’t get pro sports.

HIMSS says 3,000 people registered for its Virtual Conference, which ended Wednesday.

Final count on the EMR lemon law poll: 53%, would support one, 47% wouldn’t.

OB software vendor and McKesson partner LMS Medical Systems (nameplated as Horizon Perinatal Care) files bankruptcy in Canada. I figure the company has one strong candidate to buy it.

This CIO of a 2,000 bed hospital in China isn’t exactly a supercharged optimist, but maybe it sucks to be him: he has only 12 IT employees, few of them with any informatics experience. The hospital is looking for ERP and PACS systems, having ruled out self-development (good idea). Maybe we’re getting closer to Chinese-style communism: he, too,is hoping the government’s healthcare reform plan will include interoperability goals, along with government money to pay to meet them (their communist economy seems to be kicking sand in the face of ours, plus they’ve got the “you’ll do as we say” thing going for them, so they’re the safe bet). HIMSS will be in Beijing for AsiaPac ‘10 in case you’ve got travel money to burn.

A big vendor gets a Cerner implementation and joint venture deal in the UK. It’s UPMC, the Pittsburgh health system (and Cerner development and marketing partner) that knows no bounds when it comes to global reach and non-taxpaying status. Interesting: the trust approached Cerner, but Cerner didn’t want to sell direct, maybe to avoid competing with its customer/partner (man, those lines are really blurred).

Speaking of NHS, low pay and few training programs are causing a shortage of informatics professionals there.

Jobs: Nursing Systems Product Specialist, Statistical Analyst, SVP Professional Services, COO-Healthcare Software. Job blastage signup is here.

Speaking of jobs, I checked in with HIMSS Jobmine to see what was happening since I’ve not looked in months. I must have missed that they gutted the site and put in a “newly enhanced” system (a third party run one from JobTarget) that is really confusing. According to the Open Systems by Category, it’s got five jobs listed (hopefully that’s on the bug list, although it’s not far off: a search shows only 28 positions listed). There’s no longer an Executive category, just General Management. Candidates can now submit resumes that employers have to pay to see (“Pay-Per Prospect", the site says). I can’t say I’m a fan.

Medicity is offering a Webinar on HIE for Meditech customers on June 25, with CIO and CMO presenters from two Meditech hospitals.

AirStrip Technologies got time on the center stage at the big Apple developer’s conference this past Monday, being one of eight companies invited to demo iPhone apps. Their product being tested is a real-time system for showing data from OB or ICU. A free demo is available on the App Store.

Speaking of Apple, the Mac and iPod Touch are pretty amazing, now that I’m one of those smug artsy types who’s been in the Apple store a couple of times this week with my newly Mac-packin’ family member (last time we were there, the rugged individualism was even more apparent: one 60-something employee with a gray ponytail and was wearing a camouflage kilt, which makes the usual Hawaiian Shirt Friday sartorial jollity of tech companies look lame in comparison). It looked like a crowd that would be equally comfortable passing around recreational drugs. I admit I like the whole Apple vibe, even though it involves a startlingly different (but not exclusive) demographic of creative types vs. the beige box geek crowd. I was so inspired that my editorial this week for Inside Healthcare Computing was WWJD: What Would (Steve) Jobs Do If He Worked in Healthcare IT Instead of Apple? in which I editorialize: “And, Steve Jobs in his jeans and turtleneck was one beret short of being a full-on artiste, while Microsoft gave us the hyper-annoying loudmouth Steve Ballmer as the cartoonish, kill-our-enemies capitalist pig who was ideally cast for the political climate of that time.”

Speaking of Microsoft, it’s teaming up with University of Miami to see if the health of a small sampling of diabetics (25 patients) improves if they use a portal to interact with doctors and nurses. Technologies include HealthVault and SharePoint (they seem to like those two-words-without-spaces trade names).

And speaking of Apple, biotech company Illumina  announces at the Consumer Genetics show (!!) that consumers can buy their own genetic information for $48,000, which includes an Apple computer loaded with their DNA sequence and software to read it (other companies sell genetic information cheaper, but they only offer a genotype, not the more complex genome).

Illumina is touting the health benefits of knowing your genome, so it will be interesting to see how EMR vendors whose products were not developed in the current millennium (which is nearly all of them) will handle that information (Cerner seems to be the leader, at least judging from earlier announcements of its intentions). And like EMR vendors, Illumina has an information page and special pricing related to customers chasing stimulus money.

Simba Technologies announces its release of a free ODBC driver that connects Excel and Access to HealthVault.

A Wharton professor says what I’ve been saying all along: “No one has done the careful research to indicate that if one health care system has information technology and the other doesn’t, then the care is different. There are no controlled trials. The best-case scenario is that information technology will improve quality but not lower costs. The worst case is that there’s no difference at all.” That’s not saying that IT is bad, only that mileage varies depending on who’s using it and how, like any other tool such as a hammer or a sculptor’s chisel. Many hospitals have spent lots of money on a vast array of IT tools and people, yet they don’t seem to have a lower cost profile than those that haven’t (in fact, the opposite is often true). Outcomes also don’t seem to be positively correlated either (not to mention proving actual cause and effect). My conclusion: it’s no different than giving an employee a PC — if you are a very good hospital, carefully deployed IT will usually make you a little bit better. Otherwise, don’t count on it (although you really are counting on it, as a taxpayer buying a lot of IT-inspired blind hope).

InformationWeek covers use of VMware’s end-user virtualization software at Norton Healthcare (KY) to run Meditech desktops on thin client PCs. Norton says Meditech didn’t work in Citrix.

A Massachusetts startup led by a BIDMC clinical pathologist develops Pubget, a search tool for life sciences literature that crawls sites like PubMed to link searches to full-text PDF articles (the search beta is here).

A US News & World Report piece called 7 Ways Health Reform Is Going to Affect You likes interoperability, worries about privacy, and seems uncertain about quality (“Standardized practice guidelines will be evident everywhere, even embedded into your doctor’s government-certified computer: As described in the Obama budget, computer pop-ups will appear to help your doctor make decisions. (And through the same systems, his or her choices can be monitored for consistency with the guidelines.) More uniform care will certainly improve weak performers, but many experts worry about intruding on the seasoned judgment of the good physician. It remains to be seen how government micromanaging—if not rationing—of care, driven by reasons other than patient well-being, will go down, particularly when that patient has a face.”)

Former Emageon CEO Chuck Jett joins pharmacy management services vendor Principle Pharmacy Group as CEO.

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HERtalk by Inga

Those wacky guys at Compuware sent me a link to their mockumentary featuring the release of the Vantage 11 product. The piece features "Simon," who seems pretty hip in an IT-nerd sort of way. There is a Michael Moore look-alike, who is the interviewer/producer. I have a pretty short attention span, but this amusing and clever video kept my attention for the full four minutes.

Atlanta-based mPacts becomes the latest reseller of the  Allscripts-Misys MyWay PM/EHR.

dbMotion and SNOMED Terminology Solutions (STS) announce a partnership to define a semantic HIE ontology based on SNOMED Clinical Terms. STS is a divsion of the College of American Pathologists.  Likely more revealed at a July 1st webinar hosted by dbMotion, STS, and UPMC entitled, "Semantics—Bringing ‘True’ Meaning to Health Information Exchange." Details here.

It’s official: the World Health Organization declares a swine flu pandemic, the first global flu epidemic in 41 years. Almost 30,000 people in 44 countries have been infected, with 144 reported deaths. WHO chief  Dr. Margaret Chan calls the virus "unstoppable."

In an unrelated porcine story, a Washington woman sues a restaurant after being bitten by the establishment’s potbellied pig. The restaurant apparently has its own pigpen (why?) and the diner was trying to feed the pigs. The complaint claims the woman has suffered "lasting injuries from the attack."

Streamline Health reports a small profit of $16,341 for its first quarter ending April 30th. This compares to an $814K loss for the same period last year. The document imaging and management software vendor also saw a less than 1% increase in revenues, to $3.8 million.

US Oncology launches the iKnowMed EHR to the open market. US Oncology bought the EHR in 2004 and has been tweaking the product ever since. The company is now marketing the software to community-based physicians.

EnovateIT releases its first internally designed, developed, and assembled medical computing cart. More details on the new made in the USA carts here.

More than 50 radiologists from London’s Royal Free Hospital are now live on Nuance Communications’ SpeechMagic system. The software is fully integrated with the hospital’s RIS and PACS systems.

RCM-provider Caprio secures a contract with University Health Alliance (HI) for claims and electronic remittance advice.

The 425 member Oakland Physician Network Services (OPNS) selects my1HIE to electronically connect its members. OPNS is the fifth Michigan provider organization to join the exchange, which is working with Covisint to develop its online patient health information network.

Less than 20% of hospitals have any sort of electronic surveillance system to detect and investigate potential healthcare-associated infections real-time. Budget constraints are partly to blame.

CollaborateMD partners with 3M Health Information Systems to integrate 3M’s medical necessity coding content into CollaborateMD’s billing software applications.

CCHIT names 265 volunteers to staff 19 different workgroups. Vendors were not allowed to count for more than one-third of the positions, but I saw just about every major vendor represented once or twice. Over 600 applicants vied for the spots.

Sage’s Healthcare division donates half a ton of food to America’s Second Harvest in Tampa Bay. Each year Sage supports a global effort to give back to the community and this year the focus was on donating food. Thumbs up.

First Mr. H encouraged readers to puruse Atul Gawande’s piece in the New Yorker. Next thing you know, President Obama makes it required reading for aides and calls them to the Oval Office to discuss. Clearly just about everyone looks to Mr. H for thought leadership.

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From EMR BloodClot: “Re: eHealth Ontario. It has just been reported that Sarah Kramer, the CEO of eHealth Ontario, has been given her marching orders to ‘beat it’ as CEO. She has wasted millions and lost track of the big picture, which is patient safety and clinician satisfaction with the Pan-Canadian EMR. Why does eHealth Ontario continue to ignore us, the clinicians, who will be the end custodians of this poorly thought out EMR implementation?” Because that’s what IT executives do (no offense to those CIOs who really do give physicians a strong voice in decision-making). I’ve been on that IT side and the working assumptions where I’ve been were that doctors and nurses (a) don’t understand organizational strategy; (b) are too easily swayed by demo eye candy and insincere vendor promises; (c) understand only products themselves and not the big picture IT world of vendor stability, product positioning, and integration; and (d) don’t appreciate IT’s technology, support, and organizational challenges. I’ve worked in three places where users were invited to review and recommend clinical systems. In every one, the first choice of doctors and nurses wasn’t the one that was purchased because we IT folks (some of whom were held in very high regard, mostly by themselves and their easily influenced peers) were so much more knowledgeable that we had the right … no, the obligation … to override them to buy what we thought was the best system. Their resulting adoption was about what you would expect. CIOs are often fixated on buying whatever will cause them the fewest headaches or that carries the lowest organization risk.

With Kramer booted from eHealth Ontario, do Courtyard Group and Accenture get a free pass for getting business from her under questionable circumstances? Or, as has happened before with BearingPoint and others whose inside contact was outed and ousted, does she go to work for one of them? She’s getting $317K in severance for up to 10 months unless she finds another job. I wouldn’t be looking too hard.

From The PACS Designer: “Re: Microsoft’s Bing. In a challenge to Google, Microsoft has released a new search engine called Bing. There’s Discover Bing Tour that Inga and others can use to shop for shoes, and at the same, time earn, some cash!” In a startling burst of originality, Microsoft swaps the order of Google’s six search options in creating its own unique user experience. Even the text ads look exactly the same. While I’m sure it works OK and maybe is even better than Google in some minor ways, it’s a shame that the best Microsoft can do these days is to follow paradigms created by competitors. I can’t see why I’d be interested even with zero switching costs since Google works fine for me.

From Richiebaby: “Re: ONCHIT. The comment period on funding for regional centers deadline is coming up … just so ya know. Here’s a link to the Fed Register: Notices May 28, 2009.”

A PR company e-mailed about my comment regarding InQuickER, which allows people to schedule ED visits online at participating hospitals (there aren’t many so far). My point: why are patients going to the ED if they aren’t sick enough to go through triage and wait? The PR company’s response (paraphrasing) is that it takes a long time to get a doctor’s appointment, so patients who need “ER care but are not experiencing an urgent situation” can wait for their arranged time comfortably from home and “help hospitals save money and become more efficient.” I don’t understand why towns of any size have an all-hours veterinary office/hospital that everybody else refers to, but in healthcare it’s only the ED working nights and weekends. You would think there’s business to gain.

It had to happen: a company develops Dawg-E-Data, a $30 dog-attached USB PHR (or maybe CHR – canine health record) that holds medical information and gives appointment reminders. It was an unplanned side trip on the way to developing a human PHR. I kind of like it since people are more likely to keep their pet’s medical information current than their own.

Listening: Hammers of Misfortune, obscure California prog metal, kind of like Kansas or The Flower Kings. And watching: Deadliest Catch, although I have no idea why.

The VA will spend $3.5 billion for IT this year, but a new auditor’s report triggered by perpetually late VA planning documents says it isn’t capable of managing and overseeing its investments. The unusually pointed report (warning: PDF) says the VA’s problems started in 2006 when then-CIO Robert McFarland insisted on creating a centralized management structure reporting to him, but didn’t follow through with governance. McFarland says the criticism is a “silly, untrue and uninformed statement.” Roger Madura sent the link and postulates that the VA’s attempt to move from the much-heralded VistA to commercial software like Cerner Millennium must not be going so well.

Keane finishes its Keane Optimum iMed (Web-enabled clinical applications) implementation at Capital Health (NJ).

Nortel gets a mention in the Dallas paper for its high tech prototype medical clinic. Actually, it’s high tech only in the sense that it uses what Nortel sells: wi-fi, cellular, IVR, and RFID. London and Dubai will get their own prototypes later this year.

Former Eclipsys CFO Bob Colletti is named CFO of e-learning vendor Learn.com.

A Canada Free Press article called Healthcare: What Americans have to look forward to recaps the eHealth Ontario debacle (humorously, I might add). “CEO Sarah Kramer was earning a salary of $380,000 a year. While only being on the job a short while (the agency has only been in existence for nine months) she was awarded a bonus of $140,000. If she accomplished anything other than handing out attractive, untendered contracts to her friends and associates who, while the gravy train lasted, never had to pay for their tea and muffins, no one is quite sure of what it is. But there’s more. Beleaguered Ontario Health Minister, David Caplan last week ordered a third party review of eHealth Ontario’s expenditures, centering on the amounts paid for consultants. The province hired the firm of PricewaterhouseCoopers to conduct an examination of the way eHealth Ontario conducted its affairs. A third party review; in other words the province of Ontario hired a consultant to determine whether too much money was being spent on consultants.”

Vietnam’s economy is suffering because American technology companies that rushed in during boom times are now rushing out, leaving the country with a shrinking GDP and rising unemployment. Students are bailing out of science and technology programs and going into marketing and PR (bad idea).

Some anonymous blog commenters (not here) are demanding that Mark Leavitt step down from his role as CCHIT chairman, claiming his history with HIMSS will always taint CCHIT. My thoughts: I agree. HIMSS wisely used its clout to create CCHIT in its image and nurture it through general acceptance to advance its own agenda, but the strings need to be cut now (including replacing Steve Lieber as CCHIT board chair). I predicted when CCHIT was created that it wouldn’t really change the industry because the interoperability changes CCHIT was supposed to certify (and nothing more) weren’t capabilities customers cared about anyway. That’s what has happened, at least from my cheap seat. Now that CCHIT indirectly affects billions in stimulus dollars, I’d rather see it run by people with no trade group or vendor connections. If it isn’t willing to do that, I’d say choose or form another group to run the certification program. Some of what CCHIT wants to measure, report, or certify (functionality, security, specialty capabilities) is going way beyond what the government should be mandating anyway, although this particular government seems to enjoy telling carmakers and banks how to run their affairs (kind of like letting the Mafia buy into your business). It’s funny that the industry has fought tooth and nail to avoid FDA oversight that it couldn’t control, but seems to like CCHIT because it removes some competitors and sends innovation to the back of the line.

Speaking of CCHIT’s role expansion from simple interoperability certification to keeper of the official “here are the good EMRs” list, the poll to your right asks whether a mandatory EMR “Lemon Law” would be a better way to increase EMR adoption. The Yes votes are at 55%, while 45% say No.

Oregon passes a health reform bill that includes putting doctors and hospitals into a data network and also create statewide registry for the end-of-life wishes of citizens.

IT systems at Lawton Indian Hospital (OK) go down after a wind storm knocks power out.

iSoft launches a PACS product, developed with an Israel-based developer. It will be offered standalone or as part of Lorenzo.

Media reports said that Australia’s government would store health records on Medicare cards, but the government denies it. They still want to create a centralized database of medical records, with patient participation voluntary.

Idiotic lawsuit (dismissed): a woman loses her four-year lawsuit against the makers of Cap’n Crunch with Crunchberries when the judge rules that she shouldn’t have been deceived by the company, as she had claimed, that the cereal contains a real fruit called the Crunchberry. Her lawyer’s firm had previously lost a similar case in which they sued the Froot Loops people for deceiving highly literate customers who thought it contains real Froot.

E-mail me.

HERtalk by Inga

From Job Seeker: “Re: new job. I think I may have just found a contracting role to purse after reading Monday’s blog. Going to call Canada’s government agency eHealth and see if I can’t get to the bottom of why Peter Cho is paid 12% less than Richard Chen for the same job. And then there’s Kirk Chan, who earns quite a bit more than either one of them. Must be an alphabetical last name thing. That investigation should be worth $212/hour and a few uptight moments!” It’s pretty juicy happenings over at eHealth. President and CEO Sarah Kramer is now stepping down and there are calls for chairman Dr. Alan Hudson to do the same. Meanwhile, more reports of excessive reimbursement have surfaced, including a $30,000 for 78 hours of work (that’s $384/hour).

The administrator of Bradley County Medical Center (AR) says lack of capital and high cost is keeping his hospital from making its initial EMR investment, observing that “there’s nobody in the hardware and software business out there that’s cutting me a deal because I’m a small hospital.”

Meanwhile, the 11-bed Blue Mountain Hospital (UT) plans to implement Medsphere’s OpenVista in only three months.

The Minnesota-based Buyers Health Care Action Group rolls out myHealthfolio, a web-based PHR that utilizes the HealthVault platform. Avenet Web Solutions designed the application that will be utilized by Buyers’ coalition of public and private employees.

RelayHealth wins Target Corporation’s 2008 Partner Award of Excellence for demonstrating “innovative leadership, superior business practices and commitment” to Target’s core strategies. The award was presented at the recent National Council on Prescription Drug Program’s annual conference.

Former GetWellNetwork exec Bruce Matter joins Peminic, a healthcare workflow and process management supplier, as EVP over company growth and client satisfaction.

The VA announces plans to allow researchers to use de-identified, aggregated data of veterans to pinpoint the most effective treatments for specific conditions, including post-traumatic stress disorder and antibiotic-resistant staph infection.

James Giordano, president and CEO of CareTech Solutions, is named a finalist in Ernst & Young’s 2009 Central Great Lakes region’s Entrepreneur of the Year award.

Axolotl Corp. and Initiate Systems announce a partnership to integrate Axolotl’s Elysium Exchange and Initiate’s patient identification solution.

revelationMD wins a contract to provide clinical integration for Genesis Physicians Group (TX). The 1,460 member IPA will invest over $100,000 for the exchange technology. 

The PPO Physicians’ Organization of the University Medical Center at Princeton selects iMedica as its recommended EHR/PM provider for its 500+ member physicians.

I upgraded from my old 2G iPhone to the new, hip, sleeker 3G model just two weeks ago. I am relishing in the fact that I was cutting edge – for exactly 14 days. I am now back in phone envy mode after Apple’s announcement of its new 3GS version.

Though 42% of CIOs in all industries cut their budgets by an average of 4.7% in Q1, healthcare CIOs reported an average increase of 2.2%.

And, according to HIMSS Analytics, US hospitals will spend $4.7 billion on IT this year and $6.8 billion by 2014. Providers will use an estimated 43% to 48% of their capital budgets on technology this year.

Sanford Health (SD) announces plans to construct its first international children’s clinic in Belize City, Belize. I’m already working on plans to have Mr. H send me to the ribbon-cutting.

If you are a provider organization wanting analysis on how well different vendors are positioned to meet yet-to-be-defined “meaningful use” criteria, KLAS has a new report to sell you. For $980, you can get opinions on how well nine different EHRs are delivering on CPOE, nurse charting, etc.  Cerner and Epic received the highest rankings.  If you would like this “Meaningful Use Leading to Improved Outcomes” report and you are not with a provider organization, you can still purchase it for a mere $18,800.  (Did I mention that meaningful use is still not defined?)

Here is a sad sign of the times: retirees from Molson Brewery protest outside the St. Louis facility after the company announced a cut in their pension plans. The original pension package included six dozen beers per month, but, the company is now cutting this benefit down to one dozen monthly. Apparently, reception to the news fell flat.

E-mail Inga.

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Submit your article of up to 500 words in length, subject to editing for clarity and brevity (note: I run only original articles that have not appeared on any Web site or in any publication). I’ll use a phony name for you unless you tell me otherwise. Thanks for sharing!

The problem with publicly traded companies is they serve the spreadsheet, not the customer.

In the last year, I have heard:

• the VP of implementation of an HIS vendor said that she does not have the personnel to devote to our implementation because she needs to hit a certain metric and this would blow her numbers.
• a sales VP at a major ambulatory EMR vendor tell me that because of their end of year, they needed me to commit to buying six more licenses (to true up a five-year-old old problem THEY created) within 24 hours or they would “turn us off”.
• the SVP at a major ERP vendor, admitting that the sales team “made a mistake,” said they can’t fix it because they have to hit a certain profit margin (FYI, your company hitting a certain double-digit growth or profit margin is not a large concern of my non-profit health system struggling to break even — know your audience, people).

Whatever happened to partnerships? It is clear that the ‘partnership’ with the shareholder is far greater than the ‘partnership’ with the client.

I have been fortunate enough to work for privately held software vendors and unfortunate enough to work for publicly traded software vendors. I have worked at a privately held software vendor that was purchased by a publicly traded company. I have seen the difference from both sides. I know that the customer is not at the center of decisions in a publicly traded company; spreadsheets are at the center of decisions.

As a client of both publicly traded and privately held vendors, I am experiencing both sides of the equation. Without question, the privately held vendors make better ‘partners’.

I would not imagine the 14K that caused such a barrier to customer service at a major healthcare ERP vendor is worth the damage it has done to this two million dollar ‘partner’. The 20K that created a competitive environment was not worth putting the client at risk. The confidence lost at the executive level was not worth the implementation team hitting a certain metric for the quarter.

We all have to hit certain metrics. We all have our own challenges. Publicly traded software vendors often keep the short term revenue recognition or expense metric in focus when the big picture should be on customer satisfaction and retention. This quarter’s financial statement will not keep you going in the long run. Your ability to attract and retain happy customers that buy from you again will keep you going.

Mike Quinto is CIO of Appalachian Regional Healthcare System of Boone, NC.

Is Data In Your CDR Accurate? Are You Sure?
By Unfrozen Caveman CIO

I’ve always wondered about the accuracy of the process of duplicating data in ancillary systems, such as a laboratory information system (LIS) or radiology information system (RIS) to a clinical data repository (CDR). The most common process consists of parsing HL-7 messages and storing the data in a CDR. Sounds simple and straightforward. What could go wrong?

It turns out it’s not so simple and things do go wrong:

1. HL-7 is not simple or straightforward to work with. Parsing data can cause random discrepancies.
2. Changes, such as revising clinical data, e.g. change a lab value, revising a finalized report, etc., can cause discrepancies.
3. Software updates in the ancillary system can cause discrepancies between data in the ancillary system and CDR.

My organization is moving away from the CDR-centric framework to a web services framework (aka service-oriented architecture). In this framework, clinical data is not reproduced in a CDR unless absolutely necessary and data is retrieved from ancillary systems using web services when needed. However, for reasons related to response time, we needed to duplicated lab data in a lab data repository outside the LIS.

During this process we discovered that a vendor-supplied CDR and a second, smaller CDR, purchased as a package from a vendor to provide mobile access to clinical data, store lab data that does not match data in the LIS.  These systems are no longer used for clinical operations for reasons unrelated to the discrepancies noted.

As part of our effort to build a lab data store, we also built a program that validates lab data by comparing data in the ancillary system with data in the CDR for a specific date. We are experimenting with the best strategy for running this program. For example, run the program every morning for dates equal to yesterday, last week, and last month.

How significant were the discrepancies? That question misses the point. The question should be what do you do about it? Ignore it and pretend it doesn’t exist? Or have in place a data validation process that identifies, reports, and fixes discrepancies. Did your CDR come with one? If not, what are you going to do about it?

Forget eHealth Ontario
By Justen Deal

Forget eHealth Ontario! Take a look at the federally-sponsored not-for-profit entity, Canada Health Infoway, which actually appears to be accomplishing even less. Plus, because it is not actually part of the federal government, it gets to be much less transparent to boot! 

So far, since 2001, it has received $2.1 billion in funding, including $500 million for 2009 it just got in January.

Their longstanding goal has been to ensure 50% of Canadians are covered by electronic health records by 2010. According to a recent survey by the Commonwealth Fund, only 23% of primary care physicians in Canada are using electronic health records (compared to 28% for the United States). Sounds like they’ve got a long way to go in the next seven months, eh?

That might be why they’re now focusing on a new (and improved!) goal of covering 100% of Canadians by 2016. They estimate more funding will be required… 

Justen Deal is venture director at QuarrierWade of Charleston, WV.

NAHAM Report
By John Holton

This is a belated update on the NAHAM (National Association of Healthcare Access Managers) convention a week ago. The most exciting aspect of the convention was the formation of the Healthcare Access Management Coalition which is comprised of NAHAM, hospitals, other healthcare providers and industry vendors.

Everyone acknowledges administrative waste in our healthcare system and yet access to care and the arcane reimbursement environment created by the insurance companies is missing from the current debate. The new coalition is focusing on educating policymakers on the importance of efficient and quality management processes from a patient’s point of entry through the continuum of care. Hopefully through this education, new policies streamlining the administrative end of healthcare will result in more dollars being spent on the actual delivery of patient care.

The goals of the coalition are:

• Improve access to care and reduce healthcare costs through dynamic healthcare management
• Ensure healthcare reform includes entry point and patient management processes
• Educate policymakers about technologies that improve service delivery models
• Support technology solutions that make healthcare more affordable and efficient

Anyone interested in these topics can get more information by contacting John Richardson, NAHAM Director of Government Relations at (202) 367-1175 or jrichardson@smithbucklin.com.

John Holton is president and CEO of SCI Solutions of Los Gatos, CA.

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