Scott MacKenzie is CEO of Passport Health Communications of Franklin, TN.

Tell me about yourself and about the company.

I’ve been CEO of Passport since 2009. I worked originally with Electronic Data Systems as a programmer in healthcare. I’ve worked with Cerner, NDC Health, and McKesson. I came to Passport in 2009, so I have a lengthy background in healthcare, always in healthcare technology.

At Passport, our focus is on patient access and payment certainty. With patient access, our focus is on the front end, or the onboarding part of the process when the patient is entering the healthcare system, be it the hospital or the physician’s office. Understanding the demographics, understanding their benefits, making them aware of their responsibility, and trying collect if possible.

Also, looking at the order and understanding if you need to run medical necessity, if you need to make them aware of advance beneficiary notification, if you need to run pre-certification. It’s really a focus on the front end of trying to get everything as clean as possible to avoid denials, avoid rework on the back end, and to make the patient aware of their responsibilities so there’s no confusion later on.

Around payment certainty, obviously getting that patient payment where appropriate and also payment certainty in terms of using that information to drop a clean claim if it’s covered by a third party. 

That’s our focus. We’ve been around since 1996 in that market. We’ve got almost 2,000 hospitals and over 6,000 physician organizations that work with us.

Several companies offer a similar roster of services. What interests your customers about Passport instead of one of your competitors?

I think the biggest difference with Passport is we have worked to be the experts at what we do. This is what we do. For example, we look at the content going to the payers and coming back from the payers. We have teams of people that actually study that. We normalize that information and put it in the right format for the provider so they know what to do.

If you look at the flagship product at Passport, One Source, it began with taking that payer response and putting it on a Web site where the provider could look at it. It would be the response regardless of which payer you are dealing with. If you’re dealing with Blue Cross Blue Shield, Aetna, Cigna, Medicaid, or Medicare, it all shows the same way with the same fields.

As you know, there are standards, but is still a lot of variation in terms of how the payers respond within those standards. We spend a lot of time normalizing that information, normalizing those responses, and really getting the provider what they need to make the right decision relative to the patient’s benefits and the patient’s responsibilities. We specialize in understanding and analyzing this information.

We can also understand and analyze it and put it into an HIS system. We co-exist with the HIS system that the provider has chosen and put that information in there so they don’t have to do a lot of rules or a lot of rewriting to try to re-codify that information based on one payer’s response being different from another payer, for example.

We’ve also written a Software as a Service package that covers the whole workflow of patient access and also the back-end revenue cycle tied to that. We’re really focused on making it exception-driven, trying to drive the workflow to get the best results and to hold the staff accountable in terms of checking the right things, making sure that it’s a quality registration, and it’s a quality claim as well. Having that software available is something that differentiates us from what  you might think of as traditional clearinghouse.

Do you often find patients mis-categorized as self-pay, or those who produce an insurance card but really don’t have coverage?

We check the demographics. If they’ve given information around their name, birth date, and address and it doesn’t all check out, we can say, “This does not look like the same person as what’s been presented.”

There’s a significant number of folks where the initial coverage they present is not correct, but we are able to find the correct coverage, maybe secondary coverage or maybe alternative coverage. There’s also a number of self-pays where we run through a coverage determination process and we find coverage. Perhaps the birth date was put in incorrectly or the name was misspelled. We’ll go through algorithms where we try to find common spellings of different names.

There are also situations where for some insurers, you’ll get a higher hit rate if you don’t send certain information. For example, don’t send the middle initial if it will give you a response that the patient isn’t found or isn’t covered.

Where are hospitals with the ability to quote prices and accept patient payments at the point of service?

I think it’s still relatively small, but I think that’s one of the highest growth areas.  It’s being driven by the fact that it’s revenue leakage. Once that person leaves, your collectability drops. What I’ve read is about a 50% write-off rate plus up to 20% cost to collect. There’s a significant haircut once that person leaves the office.

It’s also driven by the fact that people are responsible for a higher portion of their payment. You see these high-deductible health plans, you see employers shifting more to the employee. It used to be no big deal if we wrote off part of that. Now, it’s significant. We’re seeing a lot of activity. Most of the for-profits are doing it. I think most of the non-profits are looking at it and are in the process of implementing or at least considering it. I’m guessing 20% of the market does more than just the co-pay. But it’s a very high-growth area for us and a very high-growth area in the market as well in terms of estimating the additional payment and collecting it.

Do you think the lack of penetration of point-of-sale pricing is because of technical reasons, or is it that people struggle with the idea of paying upfront for routine healthcare services?

I think it’s the second piece. Healthcare has been an entitlement for a long time. You have a lot of non-profits that have come to exist to provide healthcare. It’s very difficult for them to have those hard conversations in terms of the patient’s responsibility.

I also think a lot of people feel they’re entitled to healthcare, that it’s different than getting your car fixed. I understand in the emergency room that care has to be given, but if it’s an elective surgery or an elective process, it’s totally appropriate to have to pay for that. Personally, I like knowing what my responsibility is because I usually get the bill. I’ll wait until the third or fourth bill to find out what the actual collection amount is. Knowing that upfront allows people to plan as well.

But like you say, it’s like in any other industry for more and more people to be accountable for their cost of care. Also, for them to understand the price of what they’re doing. It’s one of the levers that we can use to drive down the cost by people being smart consumers, so I think it’s good for the system as well.

Do see any possibility that that will move even closer to the patient, where instead of getting a bill after their treatments, the provider says something like, “I’m going to give you this shot, but here’s what it costs” and maybe the patient says, “Well, no, it’s not worth that.”

I do. I know there are some companies that are out there trying to do it.

The problem right now is that a lot of providers are uncomfortable giving their lowest price. Maybe they’ve guaranteed certain insurers certain prices. There are a lot of concerns around pricing transparency.

I do see a lot of movement in the market in terms of companies that want to do that. I think more and more consumers are interested in that. A lot of our clients use our payment estimation product for people who call in. There are people who are medical shoppers. Our employees, for example, can choose a high-deductible health plan where if you spend intelligently, you can keep the money left over in your healthcare account. That’s your money. That causes people’s behavior to be different, where people do ask, “How much is this going to cost?” The provider needs to be able to respond. 

I do think that will become more common. It’s still a small portion, so I don’t want to over-represent it, but I do think it’s a growing portion of the population who wants to understand the cost of that care before it’s provided. More and more providers want to be able to give that to them. I read an article that Walmart is looking at becoming more active in the provider community. That will be interesting to see how they change it as well.

Hospital charges are mostly funny money. They often don’t even know what something costs – they just made up some charge years ago and increment it every year by some percentage increase. Would Passport ever be involved in hospital charging?

We don’t do anything in terms of helping them to create a charge, but we pull their historical information so that they can understand what they’ve charged historically for that procedure. Then they can load rules in terms of, “Here’s how much I would charge a self-pay patient for that.” We help them give an estimate for a call-in, walk-in, or if they’re doing another procedure and the patient wants to know what it’s going to cost. It actually prints it out on a PDF. The hospital can hand this to the consumer and they can ask them for payment right then and there if they’d like to.

We definitely do that today. That’s generally driven by norms in the market, as opposed to, as you said, building up a cost-based structure. It’s more based on market norms in terms of what they’ve been charging for that similar procedure based on their third-party agreements and based on other self-pays. That’s definitely something that we support.

I think probably everything’s been said about version 5010 that ever needed to be said but do you have anything interesting to add to that whole debate?

No. We’ve got a number of payers live now, but there’s a huge amount that still are not. It’s going to be interesting to see how all of this occurs.

A lot of work has gone into it. At this point, we’re past the point of investment. We’re really at the implementation stage. We see a lot more activity happening right now. More providers are testing and more payers are coming out with it. It’s a huge amount of work. There’s so many things going on with 5010 and ICD-10 and the Affordable Care Act. Hopefully they’ll result in benefits down the road.

If Accountable Care Organizations take off like everybody seems to think, what will the effect will be on your business?

The biggest thing will be that at the point of eligibility or at the point of accessing the health system, it’s not only going to be, “Are you covered?” but “Are you covered here?” and, “Are you covered here, and under what pricing mechanism?” 

Depending on how this all finally rolls out, you may find that when you go to a particular provider, the answer is “Yes, you can have services here, but here’s the differential on terms of the payment that will be made for this.” I think it’s going to add an additional dynamic to the eligibility process:  “You’re covered, you’re covered for this procedure, but you may or may not be covered at this location.”

I think there will also be more dynamics in not just getting you in for that procedure, but setting up the logistics for that procedure for follow-up.  Such as, “We’re going to do this knee replacement, but while you’re here, we need to set up your physical therapy and make sure we follow up with those appointments so we provide the standard of care that we’re committed to as part of the ACO.”

The onboarding process will become more rigorous. That’s an opportunity for Passport. It’s going to make our transaction more important.

Everybody’s jumping into the ACO waters because the government says it’s a good idea and they’re afraid someone else will do it first. Is the IT support available to let them be successful?

I think it’s going to have to evolve. For things that people are committing to or looking at, there are capabilities in systems, but those capabilities have to be turned on or implemented.

There will be cultural changes that have to take place totally separate from the technology. There’s been such a wave of new technologies over the past few years that I think the footprint’s in place, but a lot of people who’ve turned on this technology just got it on. They’re going to have to do additional things in implementing it and in terms of what they track to support the ACO.

A lot of the technology that’s out there didn’t originally consider this concept of a commitment across a spectrum of care. I think there’s probably some upgrades to some of the systems that will have to occur, with additional investment or additional tweaking. But we’re a lot better prepared than we were five years ago.

Any final thoughts?

Healthcare has always been dynamic. If  you look at what’s going on now with ICD-10, 5010, and the Affordable Care Act, there’s a lot of transitions occurring. Those challenges are opportunities for technology to help.

My goal, and I think the goal of all technology suppliers, is how can we make our technologies support these changes and have the least impact to providers? That’s going to be the challenge we’ll all face in the next few years. Is technology going to support the ACO movement? I think it’s the responsibility of the technology suppliers to invest in their technologies, to upgrade their systems to support these things. The changes aren’t going to stop. Having flexible technologies and having people who are engaged in making that technology stay current with the changes will be important.

I also think that engaging the patient is going to become more and more important in terms of standards of care, the patient being accountable for care in terms of coordination. I hope you’ll see a lot more around patient engagement and people taking more of an active role in their care. That’s another way we can improve people’s health and reduce cost to the system.

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From Ganglion: “Re: Franciscan Health System (WA) going to Epic. An internal memo referenced ‘a major payer’s requirement for providers to be on the Epic platform’ was unusual. I wasn’t aware that payers had that much say in such matters.” I found the item below by Googling. Maybe the major payer in question is the federal government and the ‘requirement’ involves earning MU bonuses / avoiding MU penalties.

Franciscan Health System (FHS), Tacoma, WA, along with CHI’s ITS and clinical leaders, has recommended that FHS work directly with Epic to purchase and implement Epic’s Enterprise Suite as its electronic health record solution. The project plan and budget will be presented to President’s Council in February for approval. CHI’s decision for FHS to implement Epic is based on several factors that have the potential to significantly affect the organization’s ability to remain competitive and accelerate growth, including a major payer’s requirement for providers to be on the Epic platform and Epic being the pervasive clinical IT platform in western Washington. The project will include a fully integrated electronic health record, a revenue cycle application and other applications for inpatient and ambulatory centers and employed physician practices. The Oregon facilities in the same CHI Division as FHS will implement Meditech 6.0 and Allscripts. The project is expected to begin in early 2012 and to be complete in mid to late 2013. As part of OneCare, the project will have full leadership, ITS and project management support from CHI’s national office.

From Is3Mreallyafriend?: “Re: 3M interfaces letter to customers. Looks like a desperate attempt to protect a market. You decide.” The purported e-mail from 3M was attached, with some relevant snips below. It says that the company is merely enforcing agreements already approved by customers in their contracts and that 3M will issue licenses at no charge for interfaces that meet those requirements.

The rapid transition to digitized records and expanding use of “machine learning” capabilities make it possible for some software applications to utilize 3M intellectual property in ways it was not intended nor authorized to be used … We are reviewing our current vendor relationships to verify that all existing interface license agreements include provisions that protect 3M intellectual property and ensure the compliance and validity of the output produced by our products …. If 3M agrees to enable an interface and an interface license agreement is finalized with a vendor, we will provide the vendor, at no cost to the vendor or to you, 3M confidential interface specifications … We can assure customers there will be no impact until the July 2012 3M software release, at which point direct interfacing from any vendor application not covered under an interface license agreement will be disabled.”

From BadgerMom: “Re: Martin Memorial announcement. How many times do we have to say it’s Epic, not EPIC?” I noticed that and let it slide since it seems so be a hopeless cause to expect customers sending dozens to hundreds of millions of dollars to a four-letter-word vendor to know how to spell its name. It’s annoying when vendor marketing people insist on capitalizing a company’s name for no apparent reason in press releases, but they’re innocent in this case since even Epic spells its own name correctly, as clearly shown in its logo.

From Ken Lawonn: “Re: Epic at Alegent Health. I can confirm your reader’s post.” Ken, who is SVP of strategy and technology at the Omaha-based Alegent, provided the following information:

I am the CIO at Alegent Health and wanted to confirm the post today by Nikita that the Alegent Health Board has approved a recommendation to move into due diligence with Epic. This recommendation was the result of an high level evaluation done by an IT Evaluation Committee made up of board members, physician leaders, and system executives that considered the future needs of the organization and the best platform to support us. In the end, this was about an integrated solution across the continuum of care as we move to a future where our success will be based on our ability to effectively manage a population and our need to be as clinically integrated as possible. In our evaluation, we believed Epic would provide us with the best platform for success. It was a tough decision as we have been partners with Siemens for many years, have enjoyed many great successes with the Soarian product, and Siemens is aggressively working to build out their platform to support this future environment. And while I personally believe they will be successful, the overall Committee felt Epic’s proven record was too much of an advantage. Our final decision will come in March, but we are entering full evaluation of Epic at this time.

From Pretty Patty: “Re: ViaTrack Systems. Acquired by NextGen.” Unverified. I’ve seen no announcement about the Augusta, GA claims and eligibility transactions vendor. I would have expected publicly traded parent company Quality Systems to have filed an 8K if the rumor is true, but I don’t claim to be an expert in that area.

From Wally LG: “Re: HCA. Has chosen Epic, or so I’ve heard. Heard from Epic staff that top implementation positions have been staffed even though no official announcement has been made.” Unverified.

From Reverend of Funk: “Re: whole hog vs. best-of-breed. I’ve worked at three HIT shops. One implemented everything that Cerner ever created, the second did the same with Epic, and the third (my current employer) is an academic system with a Cerner backbone and lots of best-of-breed extremities. Is #3 an oddity among most new Cerner and Epic implementations? Things are so confusing here that people don’t even know where data comes from, and just putting together data for basic purposes involves tweaking interfaces or creating new ones.” My limited, anecdotal experience is that Epic implementations usually involve replacing everything with Epic except for its obviously weak systems like lab (although with Epic, it rarely takes long to progress from new/weak to slightly less new/best available, so we’ll see if Beaker LIS makes the usual quick climb to the top of the heap.) Epic is often chosen as the solution to a hospital’s data-chasing problem and the company isn’t known for its friendly integration cooperation with competitors, but I would say both issues are less true of Cerner. That’s a cue for readers to chime in with a description of their own experience.

From DW: “Re: Patty Vogel. You may want to let people know of her passing. She was CEO of Barrow Neuro in Phoenix, but earlier in her career was a pioneer in the MSO market in North Carolina. A fine person with a long and successful career in the HIT business.” Patty Vogel died on November 4 at 68.

HITREC’s aren’t worth the $650 million in taxpayer money that’s funding them, so say 84% of poll respondents. New poll to your right, from a reader’s earlier comment and just in time for holiday-related food binging: would you discount the opinions of a healthcare-related speaker or author who appears to be significantly overweight?

Listening: new from White Wizzard, LA-based retro-metal that isn’t all that original or interesting, but serviceable in a pinch for someone feeling nostalgia for Rocklahoma-type 80s hair band music that could pass at times for Whitesnake, Dio, Iron Maiden, or Rush. I don’t love it, but I don’t hate it.

Weird News Andy worked busily through the Thanksgiving holiday to locate this tasty morsel, which captions as, “At least this man has some skin in the game.” The former world’s fattest man, who has lost almost 500 pounds after costing British taxpayers over $1.5 million in medical care over the past 15 years, is demanding that the British government pay for a $10,000 skin-tightening operation. NHS says that’s not happening until his weight stabilizes. The former letter carrier had gained so much weight that he was transferred to the letter sorting department, where he was fired for stealing money from the envelopes. He wasn’t just big boned: he was scarfing down 20,000 calories per day until taxpayers provided him with gastric bypass surgery.

WNA also contributes this story, in which a male nurse says he was fired from the health department of Dearborn, MI for disobeying a Muslim supervisor’s orders to not treat women wearing Islam garments and instead take those patients to the supervisor. He stopped doing that when a doctor complained about the treatment delays caused by that practice. The 63-year-old nurse, a former Army medic in Vietnam, has filed a sex discrimination lawsuit. WNA ponders whether the families of those patients would have sued the nurse if he had followed the rules and detrimentally delayed the care of their their relatives.

An Alaskan chiropractor whose patient information was found to be wide open on the Internet says a EMR4Doctors.com, a Las Vegas-based EMR vendor he used for a short period in 2008, is responsible. He says the vendor stored his patient information in an unsecured text file that a patient found when Googling his own name. The chiropractor thanked the patient, notified HHS, and says he’ll sue the vendor if there’s anything left to sue (he thinks the company is defunct.) An Internet search suggests that EM4Doctors is run by a chiropractor named Don Lewis, who uses the address of a small house in Las Vegas (above.) Its Web page is still active and the 1-800 number brought up a PBX message when I called it Sunday afternoon.

CMS Administrator Don Berwick says he’ll resign effective December 2, four weeks before his appointment would have expired anyway. President Obama, who gave Berwick the job in July 2010 using his “recess appointment” authority to avoid Senate confirmation hearings, says he will nominate Marilyn Tavenner (above), a nurse and Berwick’s second in command, as his replacement. Most of her career was spent at Hospital Corporation of America, ironic given that she worked as an executive of the for-profit hospital operator during the time it (as her previous employer) earned a record $1.7 billion fine for Medicare fraud (against her current employer.)

Vince Ciotti provides HIS-tory Episode # 32, the third part of his HIS, Inc. coverage. This one reads like a novel, full of intrigue and unpredictable twists and turns. Very enjoyable.

A doctor in Canada runs afoul of a peer review group over her practice’s use of an EMR. Her practice manager (also her husband, who is also the developer of the MedScribbler EMR she uses) asks for a peer review assessor who has EMR experience since her practice is paperless, but also advises the peer review group that the practice will bill them $150 per page for completing its questionnaire and $400 per hour for providing access to the practice’s records. The peer review group files a complaint and the doctor is advised that her medical license will be suspended immediately. The husband agrees to complete the forms at no charge, but tells the assessor to bring his own computer on which to install a copy of MedScribbler for reviewing the records. The assessor has installation problems and the husband says the assessor can call his company’s support line to get help for the usual $100 charge. The assessor walks out and files a complaint saying the doctor was uncooperative, resulting in another threat to revoke the her license. The husband says it’s not his fault that assessors aren’t tech savvy enough to review electronic medical records, he wouldn’t have been expected to provide free tech support if he didn’t coincidentally happen to be the software developer, and assessors should not have unrestricted access to the non-clinical part of patient records.

Nuance announces Q4 numbers: revenue up 18.5%, EPS –$0.02 vs. $0.01. Excluding one-time acquisition costs, the company beat expectations with earnings of $0.42.

In England, University Hospitals of Leicester issues a $930 million (USD) tender notice for a vendor to help it deliver electronic patient records and technology-related benefits over a 15-year period and then help it commercialize its knowledge as an IT services provider.

A Wisconsin technical college plans to discontinue its programs for medical transcription and health unit coordinator, saying the medical transcription program isn’t attracting very many students and graduates aren’t getting jobs because speech recognition technology has reduced the need for their services. It says HUC program graduates can’t find jobs because CPOE requires doctors to enter their own orders.

Fast Company runs a fun (but sadly accurate) article called How to Commit Medicare Fraud In Six Easy Steps. A key element: focus on quantity rather than quality since CMS doesn’t have the resources to check rejected claims, so a fake provider can just keep shot-gunning claims and some will eventually go through.

A woman being treated in a Scotland hospital’s ED for broken fingers starts receiving Facebook messages from  someone who said he was “checkin u out” and asking about her hand. Her unknown admirer admits to being a hospital maintenance worker who saw her in the ED and looked up her information in the hospital’s computer system. The contract maintenance employee has been suspended by his employer, the police are involved, and privacy practices are being reviewed.

E-mail Mr. H.

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Top News

A USA Today article examines the effect of stimulus money on publicly traded companies, with those in healthcare IT being “the clearest connection between the stimulus and the economy.” I don’t get this statement: it says Cerner clients have earned $100 million in stimulus money and Cerner has 20% market share, so it concludes that industry sales must have been boosted by $500 million per year, when (a) stimulus payments to providers have nothing to do with vendor sales; (b) even if they did, it wouldn’t be an annual increase; and (c) the number is probably much larger than $500 million a year, given that Epic alone has probably exceeded that number even just on the software and services part of its contracts. The article mentions sales increases for Allscripts and athenahealth, although Jonathan Bush of athenahealth opined that his company is “… a beneficiary of stimulus spending, but we’d be doing even better without it. What you really needed was hundreds of cloud-based companies innovating.”

From A Muse: “Re: weighty issue. Does anyone else feel a bit uncomfortable when we have industry thought leaders, spokespeople, and senior management of do-good healthcare companies or organizations who are overweight? When I see obese people in organizations advancing remote patient monitoring or other disease management, it makes me think, ‘Yep, it’s working for you, partner.”

  From Teena Martini: “Re: picture perfect. I saw the shoe when I was in Las Vegas and crawled into it. And I am a Martini!’” All Inga BFFs beware: there is some stiff new competition from Teena Martini (that’s her real name!) Teena, who is director of clinical applications at Gwinnett Medical Center in Georgia, sent me her photo after I mentioned a desire to crawl in this exact shoe with an Inga-Tini in hand. During HIMSS, I am dragging Dr. Jayne with me to the Cosmo for a serious photo shoot.

  From EMRsehole: “Re: [vendor name omitted.] The acting head of HR whacked numerous sales reps and others have had to sign an airtight non-compete.” Unverified.

From Mack Chiavelli: “Re: Newt Gingrich. All true. My former healthcare IT company, now dead and therefore nameless, ‘donated’ much, much money for Newt’s influence to drive interoperability and open systems in government circles. We even sponsored a number of his speeches to pre-HIMSS CHIME annual Fall Forums and later to CHIME members when the organization capitulated to HIMSS. I don’t know how successful we were, but Newt certainly made out well.”

From Insider: “Re: Epic moving into Meditech territory at Poudre Valley. It’s true that PVHS is getting rid of Meditech 6.0 and putting in Epic. Meditech’s 6.0 performance was just too painful and their response was not enough to keep the business.”

From PigEarstoPurses: “Re: 3M. I received this e-mail today about a 3M interface policy change. Wondering if others got it? It true, I would hope customers tell them to take a hike since it’s none of 3M’s business where and how customer data is utilized.” A letter from OptumInsight to its own customers says that a new 3M policy requires customers to submit an inventory of anything that interfaces with 3M’s applications. It also requires vendors of those systems to license their interface with 3M because its intellectual property is at risk. The letter claims 3M says it will disable any interfaces that aren’t covered by licenses by July 2012. Readers have sent rumors about 3M supposedly not allowing their encoder product to interface with non-3M speech recognition applications, so that may or may not be related. 3M is welcome to provide a response since this is just one side of the story.

From Ed Collins: “Re: Martin Memorial Health Systems, Florida. I’m an avid reader and find HIStalk to be a valuable tool in my CIO arsenal. Here is a bit of news that your readers might enjoy. MMHS will be going live with Epic inpatient and ambulatory apps at our two hospitals, our freestanding emergency department, and nearly half of our medical group (45 PCPs) on December 1. The specialists who represent the remaining half of our medical group go live in March. The local ad campaign started over the weekend. Nine days and counting to go-live!” I asked Ed (he’s the VP/CIO of MMHS) if he got tired of shuttling people to Verona for the never-ending Epic training, but he observes that the product just works, so the training focuses on user and analyst knowledge of the system. I swapped e-mails with another CIO earlier this week and we reached that same conclusion: you begrudge the huge time and money investment for Epic’s upfront training that seems like overkill, but only until the day you go live and everybody’s ready (extensive training, documentation, and proficiency testing is part of Epic’s secret sauce that competitors rarely emulate.) Above is MMHS’s ad in the local paper explaining the transition. I know from a long-ago site visit I took there that MMHS’s outgoing system is Meditech, so this is yet another instance of a previously unthinkable but now increasingly common phenomenon. Thanks to Ed for the report – I always enjoy hearing from the front lines.

From THB: “Re: Franciscan Health System (WA). Going Epic.” According to its project page, Franciscan brought in Deloitte for planning (seems like Deloitte gets a ton of that business) and will name a consulting firm to help with the implementation any day now.

From The Fixxer: “Re: UPMC’s altered EMR lawsuit. I am amazed that electronic medical records are being used to tamper with evidence. Why would an old geezer retired surgeon want to learn how to enter a finding in an EMR? The hospital has training facilities and Cerner experts to teach him. The bigger story is who advised him to do this. Might there just be a Penn State like scandal involving the attempted cover up of deaths of adults?” A judge orders UPMC to allow its head of quality assurance to be deposed to explain why he changed the electronic medical record of a patient who had died three days earlier in the hospital. UPMC’s lawyer in the malpractice lawsuit against it argued that the QA director was doing routine peer review work, but the plaintiff’s attorney says he not only changed the record after the fact, but also asked another doctor to add documentation about how the patient died.

From Nikita: “Re: Alegent in Omaha. They have also begun the popular to journey to Epic, starting from Siemens in their case. The board is planning a final act on the subject in March 2012, with a stated 4-5 year migration period. Part of the support argument references Epic’s being ‘a single system.’” Unverified. Alegent and Siemens have been ultra-chummy for years. If the rumor is true, Soarian gets the boot.

HIStalk Announcements and Requests

  Looking for some interesting HIT companies to follow on Twitter? I created an “Inga’s Fav” list on Twitter, so if you follow me, you should be able to access the list.

I don’t know about you, but I’m particularly thankful for the Thanksgiving break because I’m tired. I will most likely not post again until the Monday Morning Update (unless I can’t resist), so we will reconvene here then. If you are traveling, spending time with friends and family, or just slouching in front of football on the TV while dribbling gelatinous globs of cylindrical canned cranberry sauce down your front, I hope you have a wonderful holiday reflecting on those things for which you are thankful.

Acquisitions, Funding, Business, and Stock

Telemedicine provider Foundation Radiology Group raises $1 million to expand its network of community hospitals.

Sales

In advance of its migration to the Meditech 6.0 platform, Parkview Medical Center (CO) expands its agreement with Summit Healthcare to include Summit Express Connect.

Children’s Mercy Hospital & Clinics (MO) chooses Accelarad’s SeeMyRadiology for image sharing. The company says its growth in the past 12 months makes its platform “effectively a Health Information Exchange for imaging in the region.”

People

Cal eConnect appoints Robert M. (“Rim”) Cothren, PhD as its CTO, tasked with overseeing the organization’s HIT and exchange projects. He previously served as CTO for Cognosante.

Announcements and Implementations

SCI Solutions convenes its charter Executive Advisory Board to advise the company on solution development and the acceleration of the company’s growth. Some of the familiar names on it: Dave Garets (The Advisory Board Company), Ivo Nelson (Encore Health Resources), Jay Toole (Dearborn Advisors), and Allana Cummings (Northeast Georgia Health System.)

Nuance Communications signs a reseller agreement with Montage Healthcare Solutions, allowing it sell Montage’s healthcare data mining and performance measurement technology to its radiology customers.

St. Vincent Healthcare (MT) replaces its GE Centricity EHR with a $4 million system from Epic. It’s part of Sisters of Charity of Leavenworth, which is moving all facilities to Epic.

Innovation and Research

 

Aetna and the Center for Biomedical Informatics at Harvard Medical School will partner to apply bioinformatics data analysis techniques to aggregated clinical databases, hoping to evaluate treatment alternatives for outcomes and cost, study patient compliance in chronic disease, and evaluate the potential of combined EHR and claims data to predict disease. The project will be co-directed by Zak Kohane MD, PhD of Harvard and Brian Kelly MD of Aetna (above.)

  A 46-year-old former physician is arrested for practicing medicine without a license out of her home and for committing a series of burglaries that include the theft of landscaping lights, decorative patio chairs, and bicycles. She has also been charged with selling phony lottery tickets. Lisa Marie Cannon was a licensed pulmonologist until she failed to renew her license in June. The local police chief calls the case “very bizarre.”

The Joint Commission issues a statement saying it is “not acceptable for physicians or licensed independent practitioners to text orders for patients to the hospital or other healthcare setting.” It notes that texting does not provide the ability to verify the sender and  it can’t store the original message for validation.

HIMSS is launching mHIMSS, a new organization focused on mobile health technologies. The new website indicates a late November launch.

EHR adoption for midsize and large ambulatory practices will exceed 80% by 2016, according to IDC Health Insights. IDC provides an assessment of 10 EHR products from eight vendors, based on their current successes and predicted performance over the next three years. eClinicalWorks earns the top score, followed by Cerner, Sage, and NextGen. 

Weird News Andy calls this article “Abs of steel, butts of steal.” Florida police officers arrest a transgender woman for practicing medicine without a license after complaints that her derriere-enhancing procedures involved injecting patients with toxic substances such as Super Glue and Fix-a-Flat. WNA also tracks international news as evidenced by this story, in which a German gynecologist is arrested for taking photos of his patients during their exams without their permission, with the evidence search yielding 35,000 nude pictures. And WNA likes the development of a talking plate in England that commands diners to stop bolting their food down, although he’s hoping that the 1,500 pound plate refers to British currency rather than weight.

A couple of items sent over by Roger Maduro of Open Health News from the just-ended VISTAExpo & Symposium in Redmond, WA. Oroville Hospital (CA) goes live on VistA without using outside consultants after spending $500K of its own money to enhance the VA’s product to meet its needs, tapping into the developer community to create its own modules and interfaces. The total project cost was $10 million, which includes all hardware, replacement lab and medical equipment that could interface to VistA, and iPads. Roger also notes that VA CIO Roger Baker made a surprising announcement in embracing newly named VistA custodial agent OSEHRA (Open Source Electronic Health Record Agent), saying the VA will use the OSEHRA product as its own and will contribute development to it.

I got Vince’s HIS-tory (HIS Inc., Part 2) a bit late for Saturday, so here it is, including naming “the most pathetic name in the HIS industry.” I really like this week’s instructional guide on “How to Sell Vision-Ware,” which I found to be deadly accurate. Another excellent installment from HIT’s de facto historian.

• Covisint will participate in Michigan’s Council of Women in Technology Signature Event on December 3.
• Passport Health Communications announces its educational and online demonstration webinars through December.
• Gateway EDI will participate in next week’s PriMed Midwest meeting in Rosemont, IL.
• Software Testing Solutions offers its free eBook, The Who, What, When and Why of Validation.
• Trustwave announces three December webinars on security trends.
• Amit Hajra of Hayes Management Consulting blogs on ways to optimize EHR to improve efficiency and increase ROI.
• Practice Fusion wins Top Ten ratings in ten categories from AmericanEHR Partners, a program of the American College of Physicians.
• RelayHealth co-sponsors a free on-demand webcast on medical home leadership.
• CapSite’s SVP and GM Gino Johnson will present findings from CapSite’s recently published HIE study at next week’s 23rd Annual Piper Jaffray Health Care Conference. The Advisory Board, Allscripts, GetWellNetwork, Imprivata, MedAssets and PatientKeeper are also conference presenters.
• Transcription Unlimited (MO) signs a partnership agreement with MD-IT to offer the MD-IT platform and EMR to its physician clients.
• Culbert Healthcare Solutions becomes an Executive Corporate Partner of AMGA.
• Sixty-three of Texas Health Care’s 140 physicians have demonstrated Meaningful Use compliance with NextGen EHR.
• Oracle awards Orion Health the Oracle PartnerNetwork APAC ISV Partner of the Year for 2011, reflecting Orion’s performance using Oracle products and technology to create value for its customers.

Contacts

Mr. H, Inga, Dr. Jayne, Dr. Gregg.

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

ICD-10 Déjà Vu
By M. Christine Kalish, MBA, CMPE

The American Medical Association (AMA) passed a resolution at its 2011 Interim Meeting mandating the group to "vigorously work to stop the implementation of ICD-10 and to reduce its unnecessary and significant burdens on the practice of medicine.” The resolution that the AMA will "do everything possible to let the physicians of America know that the AMA is fighting to repeal the onerous ICD-10 requirements on their behalf" continues.

Strong language, AMA, but the ICD-10 train has already left the station. And we have seen this sort of talk before —there is a sense of déjà vu here.

Remember the successful efforts of the AMA and other organizations to delay the original ICD- 10 implementation date of October 2011? That’s the day CMS originally targeted for mandatory ICD-10 adoption for physicians, hospitals, and payers.

The AMA’s point of contention about the October 2011 date was that physicians were not given sufficient time to upgrade all systems and then provide training and education. They also cited the cost would be significant and the expense of the implementation should be spread out over a longer timeline. The Bush administration allowed a delay until October 1, 2013 — two additional years.

After the announcement of the initial delay, a seemingly satisfied AMA led the way in providing resources for physician practices to transition to ICD-10 within the agreed-upon timeline.

So why the change of heart now?

Organizations have already invested significant resources in ICD-10 adoption. No one is arguing that the implementation is challenging and costly, especially on the heels of Meaningful Use and other healthcare reform measures. But the AMA seems to have forgotten that they helped architect (and then eventually approved) the October 2013 delay.

Also, the AMA or, more importantly, the physicians within the association, needs to realize that the benefits of ICD-10 far outweigh the costs of implementation.

ICD-9 is outdated and no longer effective. The numbering system cannot support the addition of the new codes. With time, attempts to find codes are increasingly difficult since some are being placed wherever there is a free space in the sequencing.

The rest of the world uses ICD-10. In fact, the rest of the world is getting ready to move to ICD-11. The US needs to not only catch up, we need to realize that sharing and comparing data with other countries yields better quality of care with increased clinical efficiency and improved outcomes.

The additional codes provided by ICD-10 afford another degree of specificity that will reduce claims processing costs by reducing recurrent requests for information during the billing process. Of course, there is the flip side: documentation will continue to be a challenge. For example, a physician may know specific information about a patient but not write it down, even though the additional documentation will help with outcome assessments and quality of care indicators. It’s up to the provider, but wouldn’t they want to show how their care provides exceptional patient outcomes?

Let’s proceed with some caution. Do not let this latest AMA decision stop or even slow the implementation of ICD- 10 within your organization. It seems that a better solution would be for the AMA to get back on the train and determine how to they can improve the transition process rather than try to derail it.

Change is never easy, but let’s not be in the same position another two years down the road and have déjà vu “all over again.”

M. Christine Kalish, MBA, CMPE is an executive consultant with Beacon Partners.

A Response to Vince’s Epic Article
By QuietOne

This is a counterpoint to Vince Ciotti’s Readers Write article, The Other Side of Epic.

I usually don’t comment, but I definitely had to say something here. Epic — like everything else — has its problems. However, Vince’s claim that Siemens Soarian or Cerner Millenium has "equal or better" functionality is totally laughable. I’ve worked with both and neither comes close.

Vince states that Epic is not an integrated solution because it lacks general ledger and payroll functionality. Cerner and Siemens (in Soarian) don’t, either. Siemens had GL/AP/payroll in their older SMS products, but they aren’t offering it any more and are selling SAP instead.

Furthermore, GL and payroll are probably the least of your worries. If you get Siemens, you’ll have to interface disparate clinical, patient financial, and pharmacy systems as well as a bunch of departmental systems, each of which have different platform, database, and hardware requirements. You’ll also have to deal with all the third-party components required to make the system work, some of which have to be purchased separately. Epic, on the other hand, truly is an integrated system with a single database used by all modules (as is Cerner Millennium.)

Speaking of databases, why does Vince call InterSystems Cache’ a "proprietary" database? It is proprietary, but so is Oracle (used by Cerner Millenium) and MS SQL (used by Siemens Soarian Clinical, Financial, and Scheduling). Incidentally, Siemens Pharmacy, which you "have to" get if you want a fully functional Soarian Clinical system, also uses the InterSystems Cache’ that Vince seems to dislike.

Some of Epic’s departmental modules are arguably weak, but the same can be said of Siemens and Cerner as well as most other vendors. That is the price you pay for an integrated solution.

There is talk that Epic doesn’t play well with other systems. I do not believe that to be true, either. In addition to your everyday HL7 interfaces, Epic has a module for real-time query/retrieve relationships with non-Epic EMRs. Cerner has equivalent functionality, but Siemens does not (although I assume they must be working on something or buying another bolt-on product). 

Epic, which has the best documentation I’ve ever seen, provides extensive documentation of their architecture, database, and APIs. As a last resort, you could dive into that. Obviously, the server-side MUMPS code is visible to customers since it’s interpreted, but I was stunned to find out that they also provide the client-side source code to customers as well, obviously with legal restrictions on how it can be used.  

I am not sure where Vince got the idea that Epic is less customizable than Siemens. Siemens Invision is very customizable, but Siemens Soarian definitely is not. 

For the record, I have no ties to any vendor.  I can honestly say that I have never seen a product or company that impresses me like Epic and I am definitely not prone to brainwashing. I also want to say that I really enjoy (most of) Vince’s articles. This last article bewilders me, though, because it would seem to suggest that he is either biased or misinformed. I am disappointed.

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As the newest member of the HIStalk team, I’m continually amazed at how Mr. H and Inga keep up with the constant barrage of press releases, announcements, news, information, and gossip that circulates around everything related to health information technology. I try not to feel bad when I realize an interesting tidbit has slipped past. Hopefully at HIMSS I can meet with Inga for a mind-meld to learn how she does it (and also to absorb some of her sartorial style.)

The issue at hand is relatively small potatoes in the overall federal funding bonanza – a $1.24 million contract awarded by ONC to APP Design, Inc. The goal of this contract is to help patients better understand choices regarding sharing of health data.

Specifying, building, and deploying a health information exchange have been a major part of my career for nearly half a decade. As a physician, the concept of HIE solves a myriad of problems. Consult letters don’t get lost in the mail; labs don’t wind up being double-ordered because the results aren’t in the chart; and medical misadventures can be prevented through timely sharing of pertinent clinical data.

As those of you who have been down this road know, it’s often unpaved and riddled with pot holes, poor lane markings, and uneven shoulders. For many of us, the road trip has been halted by the barrel monster called “Consent.” This is ironic because our patients think that simply by virtue of the fact that we’re documenting using computers, that all their providers are already fully sharing patient information. I’ve had patients yell at me in the exam room because I don’t have a particular piece of data on my screen.

As long as data sharing is within a physician group (especially if they are all under the same tax ID and within a single state) it seems relatively uncomplicated. But add non-employed physicians, independent providers, multiple health systems, and (heaven forbid) multiple states and you have a real mess on your hands.

When we sought to add providers outside our large employed physician group, the recommended consent language created by outside counsel was over five pages long and was totally unintelligible to the average person. Remember all those carefully crafted patient education handouts that have to be at the fifth-grade reading level so that patients can hopefully understand them? Think again. I have multiple graduate degrees and couldn’t follow this one.

Days of revising turned to weeks and then months as we struggled to get the consent document to even a single page. What felt like years of my life were sucked away on endless conference calls with our in-house attorneys and outside counsel. I jokingly proposed the following:

Check one below:

a) I want my physicians to share all information available so they can treat me the best way possible

b) I don’t want my physicians to share information and am aware this could possibly hurt or maybe even kill me

c) I don’t want to share my information because I am a drug seeker and am afraid you will no longer treat me if you find out

Not surprisingly, the attorneys didn’t find it funny. Most of my physician colleagues however found it hilarious.

Regardless, I’m looking forward to the outcomes of this exercise. The E-Consent trial being funded by ONC has several goals, including finding new ways to educate patients about data sharing as well as finding ways to move from paper consent to electronic consent.

The trial will take place at four sites in western New York that use the HEALTHeLINK exchange system. APP Design plans to create a new user interface to inform patients about data sharing and their choices, and also to document the patient’s permission. Looking at the timeline for deliverables, by now the project kickoff meeting should have occurred as well as creation of the project approach and work plan. APP Design will have 48 weeks to deploy a pilot, then an additional 32 weeks to evaluate patient understanding and satisfaction. Biweekly status meetings with ONC and monthly progress and financial reports will occur throughout the project.

Let’s hope they do well and avoid the potholes. May the construction barrels steer them to smooth pavement, slow gradual turns, and well-lighted parking.

E-mail Dr. Jayne.

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