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Time Capsule: CEO Compensation 101: Why Neal Patterson’s Pay is Shocking

April 27, 2012 Time Capsule Comments Off on Time Capsule: CEO Compensation 101: Why Neal Patterson’s Pay is Shocking

I wrote weekly editorials for a boutique industry newsletter for several years, anxious for both audience and income. I learned a lot about coming up with ideas for the weekly grind, trying to be simultaneously opinionated and entertaining in a few hundred words, and not sleeping much because I was working all the time. They’re fun to read as a look back at what was important then (and often still important now).

I wrote this piece in April 2007.

CEO Compensation 101: Why Neal Patterson’s Pay is Shocking
By Mr. HIStalk

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We learned last week that Cerner paid Neal Patterson $4.2 million in 2006, most of it in stock. That’s a shocking amount, one that deserves the immediate scrutiny of the company’s board, its shareholders, and its customers.

Why so little?

Corporations often wildly overpay CEOs. What does overpay mean? When the shareholders are losing their shirts and the fat cat running the show still gets a big payday.

Example: Ford continues its near-death experience at the hands of Asian manufacturers with better and cheaper products, losing a mind-boggling $12.7 billion last year, but they managed to scrape up $28 million for their new CEO. That’s for just four months on the job. He’d better have brought a magic wand that can make Toyota disappear to be worth that.

Or Home Depot. While the stock was dropping 10% over the past six years, their CEO took home $124 million, plus many dozen millions more in stock options. Are those orange aprons so hideous that no one with more wealth-building talent will wear one?

At least Exxon, whose retiring chairman got a $400 million parting gift as he tried to keep a straight face about oil supply and demand, made $36 billion in profit last year. Providing $3 a gallon gas for those Fords is much more lucrative than building the cars it goes in. I hate buying expensive gas, but as long as Exxon can keep me and everybody else doing it, they’re justifiably earning big bucks.

A year ago, CERN stock was at $39.65. It’s now at $55.09. That’s an eye-popping 39% increase. The Dow was up about 14% during that time.

Pay for performance works when it comes to running companies. You want the person in charge to have big-time skin in the game. Their job is to make shareholders money. If they do that, pay them well. If not, find someone who can.

It’s like being a coach. You can be an inspirational leader, a civic beacon, and a role model, but for the money you’re being paid and the number of qualified people who could take your job tomorrow, you’d better win. Americans like winners.

Everybody has their own opinion of Cerner and its products, but it doesn’t matter what you or I think. CEOs of publicly traded companies have one audience to please – investors. Rightly or wrongly, CEOs live and die by the quarterly numbers. The most important product Cerner sells isn’t Millennium, it’s shares of stock. That’s where the real money is made.

Cerner is selling $1.4 billion a year and has a market cap of $4.35 billion. That’s pretty good for a company with cutthroat competitors and customers who (theoretically) don’t have a lot to spend.

Patterson runs the company his way, just like he did from the beginning when they were a no-name little lab vendor. That was 28 years ago. Not many current CEOs started the company, built it up, went public, and stayed at the helm.

The best possible alignment between CEOs and shareholders is to compensate them in stock. Not by giving them a bunch of free shares for taking the CEO job, but to pay them in stock instead of cash. They make money when everyone else does, the ultimate "eating your own dog food."

That’s why you shouldn’t feel too sorry for Neal. He’s sitting on $317 million worth of stock. I don’t own CERN shares, but for those happy shareholders who do, I say: bravo to him.

Comments Off on Time Capsule: CEO Compensation 101: Why Neal Patterson’s Pay is Shocking

HIStalk Innovator Showcase – Health Nuts Media

April 27, 2012 News 1 Comment

4-27-2012 12-18-42 PM

Company Name: Health Nuts Media
Address: 949 Concha St., Altadena, CA 91003
Web Address: www.healthnutsmedia.com
Telephone: 818.802.5222
Year Founded: 2010
FTEs: 6


Elevator Pitch

Health Nuts Media is attacking one of the primary causes of skyrocketing healthcare costs, poor health literacy, with a complete platform of easy-to-use assessment tools and a full suite of consumer-friendly educational resources, including animation, games and apps.

Business and Product Summary

Low health literacy costs the U.S. health system up to $236B annually and leads to higher health care utilization, problems understanding instructions and taking medications, inappropriate self medication, and reduced life expectancy. Costs are four times higher for individuals with low health literacy than for those with proficient health literacy. Only 12% of Americans have proficient health literacy, and that number has not changed over the last 40 years. 

Health Nuts Media will dramatically improve the health literacy of Americans by providing easy-to-use online assessment tools and a suite of consumer-friendly educational resources. These include easy-to-understand animated videos for both adults and kids in multiple languages. We deliver technology in a software-as-a-service model with a wide range of customization options from hospital rooms to medical homes improving healthcare literacy one patient at a time. Our clients are managed care organizations, hospitals, doctors, schools, government agencies, accountable care organizations, disease management companies, insurers, and consumers. 

Target Customer

Managed care organizations, hospitals, physicians, health educators, schools.

Customer Problem Solved

Low health literacy leads to dramatically higher costs and poorer outcomes. Health Nuts Media increases health literacy through consumer-friendly assessment tools and easy-to-understand educational resources.

Competitors

KidsHealth, Krames Staywell, Milner-Fenwick.

Advantages Over Competitors

Health Nuts Media produces health education content that is more engaging and more interactive than other offerings in the marketplace. Our Emmy Award-winning production team delivers highly engaging, branded experiences that create true market differentiation for our clients.


Fast Facts

  • Complete suite of health literacy assessment and education tools with a unique combination of quality health education, premium animation, and enjoyable storytelling
  • Emmy Award-winning production team
  • Kids Education Advisory Panel (KEAP) enhances our child-friendly focus
  • Diverse medical expert review panel – doctors, nurses, health educators, homeschooling parents
  • Customization and made-to-order content creation services available

Pitch Video


Customer Interview (a physician who runs a pediatric medical content site)


What Health Nuts products and services do you use and what difference have they made?

As a content provider for primary care practices for the past 10 years, I’ve seen a lot of medical content come my way. The animated information from Health Nuts Media is fresh, engaging, creative, and effective. We have chosen to add it to our library of medical content to distribute to many of the websites that we host and service.

How would you describe your experience in working with Health Nuts?

Tim Jones of Health Nuts Media is passionate about bringing the message of Good Health to all children. I admire his vision. He will teach many children about the importance of caring for their own bodies.

How would you complete this sentence: "I would recommend talking to Health Nuts as a potential customer if you are …"

A children’s hospital, a pediatrician or family physician, or an advocate for kids.


An Interview with Tim Jones, CEO, Health Nuts Media

4-27-2012 12-43-06 PM

Medical people seem to be challenged to provide patient education that’s both understandable and engaging. What problem does that cause and how do you turn that into a compelling return on investment for your product?

Some of the studies that we’ve seen show that low health literacy costs up to $236 billion every year, if we’re just talking about dollars and cents. Our basic thesis is people don’t want to be sick, they don’t not want to follow their doctor’s instructions or not take the medication they’re told to take. There’s just a basic misunderstanding, where individuals will overestimate their ability to understand and healthcare professionals and clinicians will overestimate what people did understand by saying, “Well, they didn’t ask any questions, so I assume they understood everything.” Therein lies this big black hole of information.

What we’re trying to do is bridge that gap and make non-written forms of communication available so that those with health literacy or innumeracy problems can understand what it is that they’re supposed to do.

Do you think the expectations have changed with online video services like YouTube and video-friendly devices like the iPad?

Absolutely. One of our advisors, Dr. Pion, is an OB-GYN doc who just turned 80 years old last summer. I don’t think any of these things are necessarily like, “Oh my gosh, we never thought of this in the ’60s or the ‘70s.” We’re just at this point in time where it’s actually possible with our technology now that even 10 years ago really didn’t exist. There was not real way to reach the masses the way that we have the ability to do today.



You have a standard library of resources. What are some of your more popular titles or topics?

Diabetes is by far the most popular. Asthma has also been very popular with us –  we know there are nine million kids in the U.S. with asthma that are dealing with it. But we also do a lot of things like gastroenteritis and vaccinations and broken bones. A lot of the topics that we deal with are common with pediatrics.

You do custom work. What kind of things have people asked for?

We’ve done breast cancer. We just finished a series on clinical research in both English and Spanish. Some of our clients like our library, but they have their own corporate mascot or brand identity, so we’ve taken their characters and wrapped them around our content as well.

When you draw the box around what you do versus what you might want to do down the road, where do you see things going? Right now you focus primarily on pediatrics. Do you see a different focus or moving into games or anything like that?

Absolutely. Every age demographic here and all around the world responds to this. Gaming is so important to our long-term objectives. We realize that it’s very popular format. It’s a great way to get information out to people without pounding them over the head with, “This is education.” We know that it works.

There’s lots of research that shows that gaming and gamification can work and deliver better clinical outcomes. That’s definitely part of the path. We see storytelling and gaming fitting together very well.

How do you make a business case that your videos are not only good for patient outcomes, but are something that customers should invest in?

We know that someone with low health literacy will end up costing something like four times more than those with proficient health literacy. Take away all the outcomes and the lower life expectancy, but if you’re just looking at a business case to say those folks that don’t understand what it is that you need to have them understand, those folks that don’t understand how to take their medication properly, how to follow your instruction will cost you four times more than those who do understand.

When you look at it in those terms and understand that that is a cost of hundreds of billions of dollars to the healthcare system every year, it’s fairly easy to make a business case to those healthcare organizations that mare managing large populations of patients, especially under a capitated basis where there’s a fixed fee or accountable care organization. It makes a pretty simple bottom line case for return on investment.

Prior to that when providers were paid for episodes and not outcomes, the only business model would have been to get drug or insurance companies to pay for your videos. The change to managing health must give you more organizations to sell to.

It does, right. We believe at the end of the day that individuals are very concerned. Nobody wants to be sick. Ideally education happens at the hospital, at the doctor’s office, at the clinic, but we also realize that when a parent has a child that’s sick and they want that information, more often than not they’re going to the Internet. They’re trying to find good resources.

For instance, we know in research that for every day a child has an asthma attack and has to miss a day of school, that will cost those parents an average of $172 per day. We know that in the average poorly controlled case of asthma, they will miss somewhere between 12 and 18 days of school per year. The real cost, not even the medication cost, not even the long-term cost on academic achievement in lifelong earnings, but just that simple mom or dad has to miss a day of work to take care of that child, it makes a pretty compelling case even at a consumer level that good information is worthwhile and will end up saving them money and help them to be more healthy.

What do you hope to gain from the exposure?

I really think we’ve got a great idea. We’ve got a great company. We’re fairly new and not a lot of people know about us yet. We also say that we like to collaborate. We like to be part of larger systems. My sense is there are so many people out there who are working in the technology space and the HIT space that really don’t know about us and they think of ways that we fit into their systems that we haven’t even thought of yet.

To me, that’s what becomes very exciting. We know where we’ve started and where we’re going and where we’re headed. We don’t ultimately know where we’ll end up. I think some of this exposure could start conversations, could start relationships that take us to places that we haven’t even yet imagined.

Allscripts Shares Open Down 42%, Epic Wins UK Deals

April 27, 2012 News 11 Comments

Allscripts shares opened Friday morning down 42% after yesterday’s financial and organizational announcements. My notes on the news and yesterday afternoon’s conference call are here.

In news from the UK, Cambridge University Hospitals and Papsworth Hospital NHS Foundation Trusts name Epic and HP as their preferred EHR vendor and are expected to sign a 10-year contract in June. Cerner and Allscripts were on the short list.

News 4/27/12

April 26, 2012 News 13 Comments

Top News

4-26-2012 6-24-54 PM

Allscripts turns in its Q1 report: revenue up 9%, EPS $0.03 vs. $0.07. Bookings were down 8% and the company has revised its full-year earnings forecast to $0.74-$0.80 per share vs. previous guidance of $1.06-$1.10. CEO Glen Tullman’s reasons for the numbers: lower sales, unfavorable sales mix, high development costs, Sunrise sales delays as cautious prospects wait for the promised integration, and a reorganization of the sales force. Also announced:

  • CFO Bill Davis has resigned effective May 18
  • Phil Pead has been fired as chairman of the board
  • Directors Catherine Burzik, Eugene Fife, and Edward Kangas, all of whom had ties to Eclipsys and who were apparently loyal to Pead, have resigned in protest over the company’s direction and leadership

Shares are dropping precipitously in extended trading following the announcement after Thursday’s market close, down 45% as I write this. That would wipe out nearly $1.5 billion of shareholder value if the price holds when the market opens Friday morning. The transcript of the earnings call should be interesting when it’s posted shortly. If you work in Allscripts sales and haven’t found your job to be challenging enough, this should do it. My question: how will flagship customer North Shore-LIJ react to the news?

Update: the conference call transcript hasn’t been posted yet, but audio is posted here. Notes I took, including my reactions:

  • Glen’s list of what went wrong includes just about everything.
  • He talks quite a bit about Sunrise successes, but doesn’t say too much about the ambulatory products.
  • Bill Davis is leaving to take a non-healthcare job. He was on the call and presented the financial results. He says he isn’t leaving because of anything to do with Allscripts.
  • Bill said neither the inpatient or ambulatory businesses performed up to expectations.
  • How many of the clients who are waiting on the much-touted integration to occur will just give up and buy something else, especially after reading about this latest company turmoil?
  • Stay away from courthouses today – they will be crowded with lawyers filing class action investor lawsuits today, I expect, since that always happens when share prices drop on unexpected company news.
  • “Unfavorable revenue mix” – does that mean that the only thing selling is MyWay?
  • They mention high non-capitalizable development costs – does that mean bug fixes rather than planned enhancements and integration projects?
  • They mention the high cost of attending HIMSS, which isn’t surprising if you saw their monstrous booth village in the exhibit hall.
  • The company will spend $190 million this year to improve software integration and user experience. Glen says prospects are withholding their decisions until some of these projects are finished.
  • The integration between Sunrise and the ambulatory products met the technical specs, but clients weren’t impressed. The beta of the re-do attempt will start in 50 days.
  • Sunrise 6.0 will add high availability and Sunrise Financial Manager will include ACO capability and ICD-10 support.
  • Glen said there’s work to be done on the client experience, and 400 employees have been hired to support that effort.
  • The company is investing in its hosting capability and adding a new data center in the next 90 days.
  • Getting rid of Phil Pead will cost $2 million (or at least as I interpreted).
  • Glen said he’d never in his career had a quarter as tough as this one.

The Q&A ran on for more then 45 minutes and was predictably ugly.

  • The first question was basically, “Why weren’t you fired instead of the board?” Glen’s answer: it was a bad quarter, but boards take a longer-term view. The follow-up: our numbers don’t match anything you’ve said, so why should we believe you? Glen’s answer: we’re making progress even though our Sunrise integration flopped.
  • Question: who’s the chairman now and how do you give confidence to investors given that a third of your board just quit saying they had no confidence in you? Glen’s answer: the board will name a chairman soon and will add new members. Clients evaluate companies on their products, not their board members. We’ve changed our development methodology from Waterfall to Agile.
  • Question: why aren’t the surviving board members on the call and will they have a vote of confidence? Glen’s answer: they’ve voted their confidence by remaining on the board.
  • Question: I’ve never seen that much board turnover due to bad bookings. What really caused the turnover? Glen’s answer: merged companies often have a different vision about the direction of the combined entities and you can look at who quit to figure out the issue (all the Eclipsys people, in other words).
  • Question: you implied at HIMSS that integration wasn’t all that important, but now you’re saying that prospects are not buying because your integration effort wasn’t good enough. Glen’s answer: it matters to a segment and customers waiting for 1.0 found it disappointing. Some problems due to sales execution, some customers waiting on the 1.5 version of the integration, some due to accounting changes.
  • Question: how do you get clients to stick with you when the window isn’t all that wide? Glen’s answer: we have 350 new clients this quarter and three Sunrise signings. Some waited and that’s what impacted sales. First time that our close rate dropped. The new sales team is the best we’ve had.
  • Question: all the Eclipsys people have left the board, but you said earlier that all the growth was centered around the Eclipsys products. What’s the difference in direction? Answer: we still have many Eclipsys employees and good products. There’s no change in strategy.
  • Question: have you been approached to be acquired and maybe the board members left because you turned it down? Glen’s answer: no.
  • Question: who will certify the first quarter’s 10Q? Answer: Bill Davis.
  • Question: you said customer attrition is low. Is that current or predicted? The data looks like you’re having problems in the market. Glen’s answer: no big bump in attrition. We’re the beneficiary of our competitors having attrition problems, but everybody is struggling to compete with Epic (as I interpret it, anyway).
  • Question: your stock’s going to be hammered and your credibility is shot, so why should Allscripts remain a public company? Glen’s answer: I wouldn’t speculate on that. The stock has fluctuated between $89 and $1 over the years and we just keep pushing forward.
  • Question: where was the underperformance in the acute care area? Bill Davis’s answer: some Sunrise deals didn’t materialize and EPSi analytics fell surprisingly short given prior performance.
  • Question: what’s the sales force stability? Glen’s answer: very good. We have some open territories. We lost only one significant salesperson and they became a CEO of another company, which indicates the quality of people we have.
  • Question: where is Bill going? Bill’s answer: that will become public knowledge in a couple of weeks, but it’s a private company not in healthcare IT.
  • Question: the numbers look like sales numbers on the Allscripts side are going down. Is the problem Allscripts or Eclipsys or both? Bill’s answer: it’s both.
  • Question: how can you turn this around? Glen’s answer: we’ve released software timelines and there’s a vibrant market. We have the right sales structure and product deliverables, so I don’t think we’re talking about a lengthy process. We’re betting on this for the next 10 years.
  • Question: will there be any other management changes? Glen’s answer: no.
  • Question: a year ago at HIMSS you said that you didn’t need a single database and that service oriented architecture would do. Has that changed? Glen’s answer: yes. Epic (he didn’t actually name them) talks a lot about single database, but their customers use EPSi and other products and with genomics and other advances, you’ll always need more than one database. 93% of healthcare organizations can’t afford to rip and replace with Epic (he named them this time) and our open platform makes more sense. Some people have Enterprise and Sunrise — that’s a limited but important universe and our 1.0 release was technically acceptable but customers said it wasn’t exactly what they wanted, while 1.5 will offer that.

Glen mentioned on the call that the company has opportunities in England, but it was announced Friday morning that both Cambridge University and Papsworth have chosen Epic over Allscripts and Cerner.


Reader Comments

From Shaken The Tree: “Re: Allscripts. Time will tell, but news is MDRX is in big trouble — big financial losses, CFO resigning, COB resigning, and no one is sure what or why the CEO is safe. If this rumor pans out, it will really just be an Epic vs. Cerner market. Then again, isn’t it already?” I’ve been getting regular and entirely credible rumor reports about the company’s problems over several weeks that turned out to be almost eerily accurate, but I either didn’t run them or did so without naming the company since I’m not comfortable putting out rumors on publicly traded companies (I picture me as Charlie Sheen’s Bud Fox being hauled off bawling in handcuffs, a la Wall Street.) This anonymous Rumor Report came in at noon Wednesday, which would have given me almost two full trading days to short-sell MDRX shares had I been so inclined. I’m poorer for my inaction, but at least I’ll sleep soundly.

4-26-2012 9-27-51 PM

From Nasty Parts: “Re: Allscripts. There was a Tuesday evening board meeting where they attempted to fire Glen Tullman. He survived on a 5-4 vote. As a result, Phil Pead (above) will be leaving the board.” I don’t think TV stock picker Jim Cramer necessarily saw this coming, but he flipped his recommendation at a great time.

4-26-2012 9-28-59 PM

From Lumpy Rutherford: “Re: Allscripts. Rumor we heard was that the board tried to fire Tullman but he held on. Dissenting board members, including the chairman, resigned on the spot. Bill Davis (above) was the sacrificial lamb and was let go also.” The wheels have fallen off at least temporarily, but Glen is still driving after winning the Allscripts vs. Eclipsys arm-wrestling match with Phil Pead (shades of the “tank over the cliff” scene from Indiana Jones and the Last Crusade). So much for Glen’s insistence about the ease of integrating Eclipsys and Allscripts products just because they both run on Microsoft technology – prospects apparently aren’t buying it (literally). I like Sunrise, but Eclipsys was a disaster, with recurring self-inflicted wounds from management gaffes and overpaying for acquisitions in a desperate and failed attempt to be a player. I don’t see any way that Allscripts will ever get back the $1.2 billion it paid for the company, which everybody knew was vulnerable to losing its few big Sunrise clients to Epic and Cerner due to lack of an integrated ambulatory solution and a narrow product line. I take no pleasure in this news – we need more strong competitors in the inpatient clinical systems market and headlines like this usually send the risk-averse CFOs of hospital prospects fleeing to the HIT billionaires.

From Dismayed ExECLP: “Re: Allscripts. So all Eclipsys board members are out, Glen’s new CFO Bill Davis leaves, numbers are terrible for last quarter and the year looking forward, and Glen survives? He is destroying shareholder value, client relationships, and what had been a highly motivated workforce on both the Allscripts and Eclipsys teams pre-merger. This is worse than what Pam did at McKesson.” Certainly Allscripts suffers more from their HIT-related challenges since they don’t have a hugely profitable cash cow of drug sales to fall back on. Maybe Allscripts should rehire Newt for the EHR Stimulus Tour Part II: he’s tanned, rested, and ready.


HIStalk Announcements and Requests

inga_small Highlights from this week’s HIStalk Practice include: a federal agency fails to update its list of medically underserved communities, leading Medicare to overpay physicians millions of dollars in bonuses. More physicians could and would participate in the MU program if their EHRs provided the required functionality. Physician compensation fell in 2011. Medicare and Medicaid paid EPs $1.4 billion in MU incentives through the end of March. A Louisiana woman steals over $700,000 from her plastic surgeon employer. You know the drill: visit HIStalk Practice; sign up for the e-mail updates; bask in the knowledge that you are smarter than the guy in the next cubicle or corner office.

inga_small I am amused and touched that so many readers have sent e-mails asking if I am OK given my recent mentions of doctor office visits. Thanks for the concerns and be assured I have nothing life-threatening. I have an injury that is annoying and that has created a particularly nasty side effect: it’s hindering my ability to take full advantage of all my fashionable shoes. 

4-26-2012 8-09-46 PM

A reader suggests this as a gift for Inga: a custom bobblehead that turns photos into a 3D image of a person’s head. Cute and apropos, although maybe not $200 worth.

My Time Capsule editorial last week challenged anybody to prove that healthcare IT improves outcomes and costs. TeleTracking responded on their blog with what they say is proof. I’ll defer to your assessment – were they successful?

On the Jobs Board: Director Project Management, Implementation Project Manager, Epic Certified Builders, Senior Business Development Executive. On Healthcare IT Jobs: Cerner Orders iVew Consultant, Healthcare Services Systems Analyst III, PACS Application Coordinator II.

I always feel like a failure when I see people around me lost in an iPhone Zone while ignoring everyone around them, happily absorbed with their make-believe Internet friends in their self-imposed Cone of Silence. Was I not adequately scintillating to draw their limited attention away from the electronic lure that is infinitely more time-wasting than the “vast wasteland” of 1960s TV? Have I failed to meet their need for human interaction, forcing them to flee for the comfort of the electronic equivalent of a blow-up doll? And yet I seek such illusory validation myself, measured by the number of people who (a) sign up for my e-mail updates;  (b) Friend/Like/Connect frenetically with Inga, Dr. Jayne, and me, secure in the knowledge that we reciprocate unconditionally; (c) peruse and uncontrollably click those gloriously non-animated ads to your left because my sponsors offer such an interesting variety of valuable products and services that you really can’t stop yourself; (d) send me rumors, news, and other goodies that I can use here to appear smarter and hipper, at least to people who don’t actually know me; and (e) use the Resource Center and Consulting RFI Blaster since you would be indirectly helping the less fortunate (the grateful offshore programmers to whom I paid a pittance to develop those). You may have noticed that I’m using Twitter slightly more to prove that I’m just as pedantic as the tweet-happy crowd, so you may get some early glimpses of HIStalk stuff there if I’m in the mood. Lastly, I would ordinarily say that having a 2,400-member HIStalk Fan Club on LinkedIn is the ultimate manifestation of narcissism, but unlike some of my fellow HIT netizens, I didn’t start my own fan club, so I’m just a guest there as you could be, courtesy of Dann. That is all, other than the obvious: it means a lot to me that you read what I write.


Acquisitions, Funding, Business, and Stock

4-26-2012 5-55-01 PM

Cerner announces Q1 results: revenue up 30%, EPS $0.51 vs. $0.37, beating consensus estimates on both. The company raised guidance to yearly earnings of $2.25-$2.32 on revenue of $2.6 billion.

4-26-2012 6-00-06 PM

Athenahealth announces Q1 numbers: revenue up 38%, EPS $0.07 vs. $0.09 (unchanged in non-GAAP reporting, beating expectations).

4-26-2012 9-13-23 PM

CPSI’s Q1 numbers: revenue up 10.2%, EPS $0.51 vs. $0.49.

4-26-2012 5-56-13 PM

Quality Systems, the parent company of NextGen, acquires Matrix Management Solutions, a NextGen reseller that provides RCM, implementation, and support services. Quality Systems says the acquisition will “enable NextGen Practice Solutions to expand its footprint among private and hospital-based physicians and groups by leveraging Matrix’s RCM expertise.”

4-26-2012 5-56-59 PM

Emdeon completes the repricing of its existing senior secured credit facilities and borrows $80 million of additional term loans for general corporate purposes, including potential acquisitions.

4-26-2012 9-45-30 PM

McKesson will pay $190 million to settle yet another lawsuit over its average wholesale price debacle of a few years ago. I don’t have the numbers in front of me, but I would guess they’ve paid out nearly $2 billion over that mess.


Sales

Siemens Healthcare signs a global radiation oncology partnership agreement with Varian Medical Systems, displacing Varian incumbent GE Healthcare. Siemens also announces four Soarian revenue cycle sales: MD Anderson (TX – a 10-year agreement for Soarian financials); North-Shore LIJ (NY – a six-year extension for Soarian financials and adding Soarian physician revenue management and scheduling to the faculty practice plan); Shepherd Center (GA – a five-year extension to migrate to Soarian clinicals and financials); and Baton Rouge Medical Center (LA – a 10-year extension to install Soarian Enterprise Revenue Cycle).

Iowa Health System expands its relationship with MediRevv to include use of its Revenue Integrity Service.

The VA awards Harris Corporation an $80 million, eight-month contract to support the VA’s migration to 5010.


People

4-26-2012 6-40-16 PM

MEDecision names Ellen Donahue-Dalton EVP/chief marketing officer. She was previously with GTECH Corporation.

4-26-2012 6-42-18 PM

HealthTrio promotes Dominic Wallen to president and COO.


Announcements and Implementations

Beacon communities Quality Health Network (CO) and HealthBridge (OH) announce an agreement that allows QHN to access HealthBridge’s data analytics and BI tools.

4-26-2012 10-30-09 PM

Montgomery County Memorial Hospital (IA) goes live on NTT DATA’s EDIS solution. The hospital is a user of the company’s Optimum solutions.

Orthopaedic & Spine Center (VA) expands its use of White Plume solutions with the addition of AccelaMOBILE, White Plume’s mobile charge capture app.

OTTR Chronic Care Solutions announces OTRRbmt, a pediatric bone marrow stem cell transplant patient management system.

4-26-2012 6-51-33 PM

The New York eHealth Collaborative, the NYC Investment Fund, and the NYS Department of Health launch the New York Digital Health Accelerator, a program to promote HIT initiatives in New York state. It will offer up to $300,000 and mentoring to 12 early- and growth-stage companies that are developing technology solutions for care coordination, patient engagement, analytics, and message alerts, primarily products that could benefit the state’s Medicaid program redesign. The initial investment of $4.2 million is expected to create up to 1,500 jobs over five years and to attract up to $200 million in venture capital investment to graduating companies. Mentoring will be provided by 18 provider organizations, including New York-Presbyterian Hospital, North Shore-LIJ Health System, NYU Langone Medical Center, Maimonides Medical Center, and Community Healthcare Network.

Moffitt Cancer Center (FL) goes live with a clinical trials recruitment and personalized medicine application, built on Oracle tools, that it says will allow it to more closely connect patient care information and research results to improve clinical decision support tools.

4-26-2012 10-31-54 PM

Max Healthcare becomes the first hospital in India to reach HIMSS Analytics EMRAM Stage 6.


Government and Politics

CMS awards CPA firm Figliozzi and Co. a three-year, $3 million contract to audit payments and compliance with the EHR incentive program.

VA CIO Roger Baker says the first VA-DoD integrated EHR sites will go live two years ahead of schedule in 2014. He also announced that the VA is testing an iPad EHR app in a 1,000-clinician pilot. 

Pentagon researchers are exploring the use of computer-based simulated therapists to conduct therapy sessions with service members, with the system using motion sensing and a webcam to detect signs of post-traumatic stress disorder. The video above is of a similar DoD project that was intended for service members to use in their homes, but without the symptom detection hardware. Thanks to Guy for the link.


Technology

The US Patent and Trademark Office issues a patent to DR Systems for technology related to automated selection and forwarding of medical data to secondary locations, such as EMRs.


Other

Weird News Andy ponders whether anyone’s up for a third-hand kidney. Surgeons at Northwestern Memorial Hospital (IL) transplant the same kidney twice in two weeks in two different patients when the first recipient’s existing disease renders it useless to him. The donor was the first patient’s sister, who was disappointed that her kidney didn’t help her brother but happy that at least someone benefited from it. And being on a transplant roll, WNA also finds this story bizarre: the father and grandmother of a two-year-old boy are arrested for kidnapping him as his family sits by the phone waiting for the call saying the boy – #1 on the heart transplant list – needs to be rushed to the hospital to receive a donor heart.

One more gem from WNA. The Utah Department of Health, alerting 273,000 people of a Medicaid data breach that exposed their Social Security numbers by sending an unsigned letter advising them to call a hotline number, gets complaints about the first question scam-wary people are asked when they call: what’s your Social Security number?

4-26-2012 7-57-47 PM

Cincinnati Children’s Hospital (OH) announces an $180 million addition that will bring its total research space to 1.4 million square feet, which will make it the largest pediatric research facility in the country.

Pennsylvania’s State Health Department finds that two patients at St. Luke’s Hospital were dangerously overdosed on IV meds because nurses incorrectly programmed their IV pumps at 10 times the ordered rate. At least it wasn’t erroneously programmed PCA pumps this time, which the state said was the cause of three patient overdoses at the same hospital a few months ago.


Sponsor Updates

  • Cisco honors World Wide Technology with six awards at its annual partner summit. 
  • MEDSEEK recognizes five customers with eHealth Excellence Awards at its 2012 eHealth Client Congress. 
  • Boston Business Journal names eClinicalWorks to its Pacesetters Powerhouse Elite in recognition of its 148% growth over four years.
  • TripleTree names Awarepoint and Optum as finalists for its 2012 TripleTree iAwards for Wireless Health.
  • CynergisTek will feature its HIPAA Audit Readiness Solution Portfolio at this weekend’s 16th Annual HCCA Compliance Institute in Vegas.
  • Billian’s HealthDATA adds home health agencies and nursing home financials to its market coverage for subscribers.
  • Aventura partners with Choice Solutions to provide one-click access to patient data.
  • Gartner names MedVentive as a 2012 “Cool Vendor in Healthcare Providers” for providing innovative and potentially transformative solutions for healthcare delivery organizations.
  • EBSCO Publishing adds continuing education modules for PT/OT/ST to its Rehabilitation Reference Center that’s used by rehabilitation clinicians at the point of care.
  • Capsule posts the next video in its Connected Consultant series intended to educate clinicians and IT people about medical device integration, this one on hardware.

EPtalk by Dr. Jayne

On the social media front, research suggests that text messages sent to parents may increase the number of children receiving flu vaccine. Although the increase was modest, it at least confirms the comparability of texting to reminder phone calls.

For those of us who are always mobile and love our tablets, NCQA is starting to release publications for iPad and Kindle, including Patient Centered Medical Home Standards and Guidelines and Health Plan Standards and Guidelines for iPad and Kindle. The e-mail I received offered substantial introductory price reductions for orders placed before July 1, 2012.

Stanford University School of Medicine physicians have developed a web-based medical game which aims to test and improve physician knowledge of a life-threatening condition: sepsis. Titled Septris, it harks back to the ubiquitous 80s game Tetris. Although free to players, a $20 fee enables a post-game test that delivers continuing medical education credits. You can play online at the Stanford website. Note to PC users – it won’t run on Internet Explorer, so either use your phone or make sure you have Firefox or Google Chrome.

Monday’s Curbside Consult discussion of ICD-10 codes led to a flurry of reader e-mails (which I’m always happy to receive – being an anonymous semi-celebrity can be lonely at times.) A snippet:

Crushed by an alligator! That’s hilarious, it’s real. I wonder if that’s the same family code for “Attacked by a Sasquatch?”

Dr. Nurse writes:

V91.07 Burn due to water-skis on fire. How, really, does this happen? Clearly it must have been done at some point. Then there is: W22.02XA Walked into lamppost, initial encounter as well as W22.02XD Walked into lamppost, subsequent encounter. I guess you don’t get sequela here. And, I have been a knitter for years, and unless one carries the sharp poke in the eye metaphor too far, it is hard to imagine how one might injure oneself here. I don’t think it makes much difference if I were a student or working for the military… go figure:  Y93.14×1 Knitting, non-work related activity; Y93.14×2 Knitting, work-related activity; Y93.14×3 Knitting, student activity; Y93.14×4 Knitting, military activity.

I agree wholeheartedly with her closing statement: you can pretty much make up anything you can think of and find it in ICD-10. I still think the burning water ski one is the most hysterical.

clip_image002

Although it’s still 11 months away, I think I’ve decided what to wear to HIStalkapalooza next year. Branson, MO high school student Maura Pozek has made her last several prom dresses out of recycled materials, including cardboard and Doritos bags. I am truly admiring her dress from last year, made from over 4,000 pop can tabs (or is it soda?) woven together with pink satin ribbon. I hope she accepts commissions! I know Inga will help me find the perfect shoes.

Print


Contacts

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

More news: HIStalk Practice, HIStalk Mobile.

Readers Write 4/25/12

April 25, 2012 Readers Write 5 Comments

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!


CDS by the Numbers: Three Useful Frameworks for Developing Clinical Decision Support Applications
By Lincoln Farnum

4-25-2012 6-11-29 PM

Clinical decision support, or CDS, is many things to many people. Ask any 10 healthcare providers what clinical decision support is and you’ll very likely get 10 (or maybe 20) different answers, all good ones. The answers are also likely to be tinged with some degree of frustration and mistrust.

CDS as a discipline stems from the original promise of computers developing artificial intelligence — actually practicing medicine, making diagnoses, and managing patient care. Obviously these early expectations have not yet been fully realized. Today, our understanding places computers in medicine into more supportive roles.

In practice today, one commonly seen CDS application is related to medication ordering — alerting for allergies; duplicate orders and therapeutic overlaps; and drug-drug and drug-food interactions. These applications have no doubt saved human lives and resources, but often do so at a high cost to prescribers in the form of confusing messages and alert fatigue from poorly designed or executed rules.

Also, ethical concerns can affect users’ experiences with CDS. Concerns that technology-driven decision making will affect the doctor-patient relationship or that it might fail to take into account the patient’s values, or produce a cumulative de-skilling effect on physician training have all been commonly cited. There are also frequent liability concerns relating to prescribers accepting erroneous advice from a computer. It’s the fallout from these common but very reasonable apprehensions that we as consultants must try to manage on a daily basis.

Designing effective CDS is as much art as science, and it’s a quite a bit of both. Detractors of clinical decision support enthusiastically point to the occasional bad examples, but are quite often not even aware of the good ones. They seldom see “good” CDS — in part because it’s so hard to do, but also because good CDS is often invisible. CDS applications are, at their best, an unseen hand gently guiding patient care and clinical decision making.

There exist today three common frameworks for designing effective CDS: the Three Pillars of Effective Clinical Decision Support, the Five Rights of CDS, and the Ten Commandments of CDS.

Let’s begin with discussing the Three Pillars.

 

The Three Pillars

Osherhoff, et al, in “A Roadmap for National Action on Clinical Decision Support,” uses an image of three pillars supporting effective CDS. They are represented in the image below:

 

4-25-2012 6-10-45 PM

Pillar 1: Best Knowledge Available When Needed

  • Represent clinical knowledge and CDS interventions in standardized formats (both human and machine-interpretable) so that a variety of knowledge developers can produce this information in a way that knowledge users can readily understand, assess, and apply it.
  • Collect, organize, and distribute clinical knowledge and CDS interventions in one or more services from which users can readily find the specific material they need and incorporate it into their own information systems and processes.

Pillar 2: High Adoption and Effective Use

  • Address policy / legal / financial barriers and create additional support and enablers for widespread CDS adoption and deployment.
  • Improve clinical adoption and usage of CDS interventions by helping clinical knowledge and information system producers and implementers design CDS systems that are easy to deploy and use, and by identifying and disseminating best practices for CDS deployment.

Pillar 3: Continuous Improvement of Knowledge and CDS Methods

  • Assess and refine the national experience with CDS by systematically capturing, organizing, and examining existing deployments. Share lessons learned and use them to continually enhance implementation best practices.
  • Advance care-guiding knowledge by fully leveraging the data available in interoperable EHRs to enhance clinical knowledge and improve health management.

The Five Rights

The Agency for Healthcare Research and Quality (AHRQ) has published a CDS Toolkit in which safe and effective medication management is supported by the use of CDS, though these concepts can easily be extrapolated to health care in general. The Five Rights of Effective CDS — not to be confused with the Five Rights of Medication Administration — proposes that we can achieve CDS-supported improvements in desired healthcare outcomes if we communicate:

  1. The right information. Evidence-based, suitable to guide action, pertinent to the circumstance.
  2. To the right person. Considering all members of the care team, including clinicians, patients, and their caretakers.
  3. In the right CDS intervention format. Such as an alert, order set, or reference information to answer a clinical question.
  4. Through the right channel. For example, a clinical information system (CIS) such as an electronic medical record (EMR), personal health record (PHR), or a more general channel such as the Internet or a mobile device.
  5. At the right time in workflow. For example, at time of decision, action, or need.

The Ten Commandments

Finally, David Bates, et al in JAMIA published “Ten Commandments for Effective Clinical Decision Support: Making the Practice of Evidence-based Medicine a Reality,” in which he modestly proposes the following ten commandments for CDS:

  1. Speed is everything. Even if the decision support is wonderful, if it takes too long to appear, it will be useless.
  2. Anticipate information needs and deliver in real time. CDS must be presented at the moment the user needs it.
  3. Fit into the users’ workflow. Users won’t go looking for CDS — it needs to be in their workflow.
  4. Little things can make a big difference. Small changes in delivery can have an oversized effect in outcomes.
  5. Recognize that physicians will strongly resist stopping. Don’t bring clinicians to a dead end when making suggestions.
  6. Changing direction is easier than stopping. Propose alternatives when advising against something.
  7. Simple interventions work best. Complex and multi-paged guidelines will not be readily accepted.
  8. Ask for additional information only when you really need it. Try to obtain all necessary information passively. Ask for additional information only if it is absolutely required.
  9. Monitor impact, get feedback, and respond. Verify that interventions are producing the desired outcomes and communicate with your customer base.
  10. Manage and maintain your knowledge-based systems. Suggestions based on outdated information are dangerous and worse than no suggestions at all.

Obviously, this is a very high level overview of these frameworks. The below links will provide more information and context. The simple take-home lesson is that effective CDS isn’t easy and even good CDS isn’t always accepted or performs as its developers intend. The development and deployment of clinical decision support should be undertaken with an understanding of the challenges and recommendations for best practices, and with the strong cooperation of and input from the user community.

A Roadmap for National Action on Clinical Decision Support, Jerome A. Osheroff, MD, et al.

AHRQ, Approaching Clinical Decision Support in Medication Management

Ten Commandments for Effective Clinical Decision Support: Making the Practice of Evidence-based Medicine a Reality, David W. Bates, MD, MSc, et al.

Lincoln Farnum MMI, RRT-NPS, CPHIMS is a senior consultant with Vitalize Consulting Solutions, an SAIC Company and a graduate teaching assistant in the Master of Science in Medical Informatics program at Northwestern University.


I’m a Believer in Diagnostic Decision Support
By Scott W. Tongen, MD

4-25-2012 6-41-15 PM

When I read a vendor’s brochure about diagnostic decision support software that mirrors how medical students and physicians in training are taught to diagnose patients, I had an epiphany. My peers and I today are not diagnosing patients the way we were instructed in medical school and residency. As a result, we — and our patients — pay a heavy price.

As students and residents, we were asked to provide a list of all possible diagnoses based on patient’s symptoms, medical tests, accumulated medical knowledge, and other information. Next, we would use the data at our disposal to eliminate diagnoses that did not fit until we were left with one diagnosis.

However, advances in imaging software and electronic health records, revenue pressures, and crushing time demands had led us to stop using that “differential diagnosis” methodology on a daily basis, leading to misdiagnoses or missed diagnoses.

None of us likes to admit our mistakes and fallibilities when we’ve misdiagnosed or missed a diagnosis, but it happens: 40,000 to 80,000 patients die annually due to misdiagnosis, according to a 2009 study published in the Journal of the American Medical Association.

I believe a major reason for an inaccurate or incomplete misdiagnosis is due largely in part to the increased use of powerful EHR systems. Those systems are deemed so efficient now that they lull highly skilled and trained professionals into a false sense of security. Too many physicians rely on electronic alerts and images to help them solve the mystery of a patient’s illness, forgetting that technology can be a poor or terrific tool, depending on whether it is used correctly.

Also, doctors and hospitals do not realize that EHRs are not sold “out of the box” with diagnostic decision support that generate potential diagnoses and flag high-risk “Don’t Miss” diagnoses when patient’s symptoms and vital signs are entered into the application. When clinicians do not know what they do not know or are not thinking about a possible diagnosis, they certainly will miss it.

Another reason for misdiagnoses and missed diagnoses is physicians’ busy schedules, as continual reimbursement cuts are forcing them to squeeze in more patients. This, combined with other demands competing for their time, make it impossible for doctors to remember all pertinent details that could potentially explain a patient’s problem, much less keep up with the massive explosion of peer-reviewed studies and medical discoveries published in numerous medical journals.

All those thoughts flashed across my mind as I read the brochure, which ultimately led to my convincing administrators to fund and offer the tool to our physicians. Diagnostic decision support software can help doctors address those problems while minimizing misdiagnoses that harm or kill patients.

For that reason, every physician and hospital in the country should implement diagnostic decision support software that highlights and enables them to access relevant information about potential diagnoses. They will find the tool extremely valuable, particularly when diagnosing difficult as well as rare cases. A useful objective review of these tools was published recently, “Differential Diagnosis Generators: an Evaluation of Currently Available Computer Programs” by William Bond, MD, MS et al from the Lehigh Valley Health Network.

To be clear, I am not proclaiming diagnostic software needs to emulate a physician’s thinking. What I am advocating is that doctors should use it to bring up diagnoses they otherwise would not have considered or remembered. The tool will more than pay for itself if it prevents a single fatality or serious misdiagnosis. More importantly, it will enhance quality and safety of care.

At the time this article was written, Scott W. Tongen, MD was medical director of clinical documentation, compliance, and quality at United Hospital, part of Allina Hospitals & Clinics in Minneapolis. He has since joined Vitalize Consulting Solutions, an SAIC Company as medical director.

News 4/25/12

April 24, 2012 News 10 Comments

Top News

4-24-2012 6-30-08 PM

Cerner breaks ground on its $160 million Kansas City, KS campus, which will eventually house 4,000 employees. The first tower is projected to open mid-year 2013 and will serve 1,000 employees, including about 800 new hires.


Reader Comments

From THB: “Re: Accretive Health. Wanted to hire me with this exact thing under the guise of implementing an ACO-type process (do you want us to put the kidney stones back in?)” The State of Minnesota goes after Accretive Health for its actions on behalf of its hospital customers, including placing its employees in the ED to demand payment before services are rendered and for using information in hospital charts to try to collect overdue bills. I’m uncomfortable with the tone of the entire article, which seems to suggest that (a) hospitals should be passive in their efforts to convince patients to pay for services rendered, asking them nicely and infrequently if they wouldn’t mind setting their debts at some point if it’s not too much trouble; (b) it’s unethical to ask ED patients to make payments for previous visits before seeing them again, when in fact many of those patients show up for non-emergent conditions anyway and treat it more like a physician office visit; and (c) hospitals are being shady when they allow Accretive employees to work in its departments, even though full hospital departments like dietary and housekeeping are outsourced all the time.

Why isn’t the state upset about a national healthcare system based on ridiculously inflated charges that are favorably discounted to big insurance companies but not to patients without insurance, or with patients who incur healthcare services with no intention to pay for them even when they are financially able to do so? Hospitals and Accretive are doing exactly what you would expect given the goofy rules of the game – hospitals are often huge and hugely profitable non-profits (intentional oxymoron) with multi-million dollar executives who are wired to maximize the bottom line. The system was changed years ago to eliminate the charity and tax-supported models and instead requires hospitals to be run like a business. The shades of gray about which services are mandatory, who can and can’t afford to pay, and how aggressive the bill collectors are allowed to be just detracts from the central issue – hospitals are doing nothing illegal, just selectively distasteful to those who think healthcare isn’t a business when it clearly and intentionally is, rightly or wrongly.

4-24-2012 7-50-39 PM

From Banishing Bob: “Re: North Carolina hospitals. Subject of a scathing investigative series by the Raleigh newspaper.” The five part-series, called “Prognosis: Profits — Hospitals Prosper at Patient’s Expense” is an extension of the argument above – behavior that’s unsavory, but legal and, according to the hospitals named, necessary. North Carolina’s non-profit hospitals – which pay no income, property, or sales taxes — are banking annual profits of up to $500 million, erecting massively expensive Taj Mahospitals, paying their executives handsomely (25 in the state make over $1 million), strong-arming patients who can’t or won’t pay their bills, and sitting on multi-billion dollar reserves in a couple of cases. All in the name of sustainability and giving the locals the care they deserve, the executives say. Most of the 25 non-profit hospital executives in the million dollar club work for Novant or Carolinas HealthCare. Carolinas HealthCare paid its CEO $4.2 million, the COO $2.5 million, the CFO $1.8 million, and has EVPs making nearly $2 million. Novant’s chief clinical, medical, and administrative officers each made over $1.5 million and its general counsel was paid $1.2 million. On the IT side, Novant paid its CMIO $801K and its CIO $770K. I don’t know about Carolinas HealthCare since their federal 990 form isn’t readily available for whatever reason (I assume because they’d rather it not be). Excessive? You decide.

From Oblate Spheroid: “Re: Bill O’Connor. Gone from Zynx. What’s going on there?” Unverified. Bill’s LinkedIn profile says he’s still there. He is (or was, depending) the SVP of marketing, joining the company nine months ago.

4-24-2012 8-19-08 PM

From Beeper King: “Re: beepers. Because there is no guarantee of message delivery with cellular communications, pagers will be with us for a long time to come. How often have you received a cellular text message a day late? The cellular community will need to be pressured to make this change. However, given the small portion of their market that healthcare segment makes up, this probably isn’t likely to happen soon.” The beeper discussion is fascinating. Somehow every other industry makes do without beepers for their critical, real-time communications. The only time I felt secure in knowing whether my message was received (and opened) was in the old days of the two-way RIM pager, precursor to the BlackBerry. Even now, there’s no perfect system – secure, cheap, usable in all geographic areas, and with verifiable delivery.

From Suggestion Box: “Re: interviews. You should interview health system CEOs about IT-related topics such as Meaningful Use and ACOs.” I really like that idea. If anyone can hook me up, I’m happy to do it. I’ve tried George Halvorson of Kaiser a couple of times with no luck, but just about any big-hospital CEO would be fun.

From The PACS Designer: “Re: cloud collaboration. An application that has been adopted for collaboration by over 120,000 businesses is Box. Box offers secure, scalable content-sharing that both users and IT love. The app pioneers a new level of content management security, with role-based access controls, 99.9% uptime guarantee, and data encryption using 256-bit SSL." A one-user, 5 GB personal account is free, although so is the long-delayed, just-announced Google Drive.

From Frank Poggio: “Re: Medicare payments. CMS proposes a payment update for acute-care hospitals that it projects will increase operating payments by about 0.9% in 2013. Well, let’s see — that would mean if you did not meet Stage 1 MU, that would be a penalty of 0.3%. In a 250-bed facility, that would be maybe a $100k loss. Is it worth slamming in an EMR? I doubt it. Oh, by the way the docs got 0%, so one-third of zero equals zero penalty.”

4-24-2012 6-50-38 PM

From Daniel Barchi: “Re: Yale New Haven Health System. Greenwich Hospital went live big bang on Epic for all financial and clinical applications this past Saturday. Greenwich is the first of the three hospitals to go-live and it joins 36 physician practices from Yale Medical Group, Northeast Medical Group, and private community physicians who have been live on Epic since October. I could not be more proud of our local Epic team and the staff and leadership of Greenwich Hospital. We have also been really well supported by a talented team from Epic. I have been through many go-lives and the preparation and hard work of all of these teams made this about as smooth as a hospital go-live can go. The attached picture shows Greenwich Hospital President and CEO Frank Corvino throwing the switch at a go-live ceremony the first day.” Thanks for the report. Daniel is CIO of the Yale health system and the medical school.


HIStalk Announcements and Requests

4-24-2012 6-55-05 PM

Welcome to new HIStalk and HIStalk Practice Platinum Sponsor simplifyMD. The Atlanta-based company offers The Digital Chart Room, which includes medical-grade document management, auto-indexing of scanned documents, a template generator, the Productivity Pilot task organizer, and a personal health record. It eliminates the limitations of paper-based charts (one-person access, lost files, high labor costs), avoids the risks of EMR implementation (physician workflow interruption, expense, lack of ROI), and allows practices to increase their volume to offset higher costs and reduced payment. The company’s talking points are fast and friendly customer support, affordability, easy implementation, and elimination of customer exposure to technical obsolescence. Customers choose between a fully hosted cloud-based solution or a local cloud (a local server that allows uninterrupted operation if Internet access is lost, but with access from anywhere). It’s one monthly price ($395) for everything and the customer can just stop using it with no additional charges if they find that it doesn’t pay for itself. Check out their ROI calculator here. Thanks to simplifyMD for supporting HIStalk and HIStalk Practice.


Acquisitions, Funding, Business, and Stock

4-24-2012 6-15-50 PM

Streamline Health reports Q4 results: revenue $4.5 million vs. $4.9 million, EPS $0.00 vs. -$0.19.

4-24-2012 6-16-33 PM

Standard Register announces Q1 revenue of $157.6 million, which includes $57 million from its iMedConsent (dba Dialog Medical) division and other HIT solutions. The company notes that sales of clinical documents and administrative forms fell 12% from the previous year due to customers implementing EMRs.

4-24-2012 6-17-21 PM

Healthways acquires Ascentia Health Care Solutions, a provider of population health management technology to support physician-directed population health initiatives.

4-24-2012 6-18-03 PM

HealthStream announces Q1 numbers: revenue up 28%, EPS $0.05 vs. $0.07, beating revenue estimates but missing consensus earnings estimates of $0.06. Shares made Nasdaq’s biggest percentage losers list for the day, down 10%.

4-24-2012 6-41-41 PM

Apple beats all Q2 expectations with revenue up 59% and EPS $12.30 vs. $6.40. The company sold 35 million iPhones that accounted for 58% of its revenue. It sold 11.8 million iPads, more than double the year-ago number even though the newest model was available for only the last month of the quarter. Mac sales were up 7% to four million, while iPod sold 15% less than the year-ago figure.


Sales

DR Systems announces seven new PACS contracts totaling more than $3.7 million.

The 90-physician Allied Pediatrics (NY) selects Isabel Healthcare’s diagnosis decision support technology, which will be integrated with Allied’s GE Centricity EMR.

The VA extends its contract with Authentidate for home telehealth devices and services for at least one more year with three one-year extension options. 

4-24-2012 6-43-09 PM

Indian River Medical Center (FL) selects RelayHealth to provide HIE and PRN technologies.

The Saskatchewan Surgical Initiative announces that it will expand the implementation of Surgical Information System technologies into new hospitals.

4-24-2012 6-44-35 PM

Duke University Health System will implement iSirona’s device connectivity solution.

Cuyuna Regional Medical Center (MN) chooses PatientKeeper’s clinical applications to create a virtual EMR from the hospital’s Meditech inpatient and Allscripts outpatient systems.


People

4-24-2012 6-27-11 PM

Poudre Valley Medical Group CEO Russell Branzell joins GetWellNetwork’s board of directors. He was formerly CIO of Poudre Valley Health Systems and the president and CEO of that organization’s for-profit IT company.

4-24-2012 6-27-54 PM

Communications consulting firm WCG hires Rob Cronin, the former head of corporate communications for SureScripts, as practice leader of healthcare technology and transformation.

4-24-2012 8-30-48 PM

AMIA President and CEO Kevin Fickenscher MD is named chairman of the newly created healthcare advisory board of Intelligent InSites.

4-24-2012 8-25-50 PM

Lt. Col. Danny J. Morton (on the right above) is named as the Army’s MC4 battlefield EMR product manager, replacing Lt. Col. William E. Geesey in a ceremony at Fort Detrick, MD.


Announcements and Implementations

Open source provider Medsphere Systems joins the Open Source Electronic Health Record Agent community, which focuses on establishing a code repository for the VA’s VistA EHR.

4-24-2012 9-37-52 PM

Mount Sinai Medical Center (NY) implements Perminova EP to manage the scheduling, workflow, documentation, and billing processes for cardiac electrophysiology procedures.

Phreesia adds an electronic version of the M-CHAT autism screening tool for toddlers to its patient check-in system.

The Health Information Trust Alliance (HITRUST) establishes the Cybersecurity Incident Response and Coordination Center to provide alerts and information-sharing related to healthcare cybersecurity threats.

EHR Doctors announces that its CCD Generator is being used by Ministry Health Care to create an ONC-ATCB certified Continuity of Care Document from its multiple EHR systems.

TigerText announces a new version of its secure text messaging application, with University of Louisville as its first higher education customer.

In Canada, doctors at Ottawa’s Queensway Carleton Hospital say they like what they’re seeing in the pilot project for a discharge information system developed by TELUS Health. PCPs automatically get electronic copies of the records of their patients who are seen in the hospital’s ED, replacing the paper records that took two weeks to deliver.


Other

inga_small I don’t watch much TV (American Idol excluded) but I was glad to see that Epic employee Rachel Brown is still a contender in The Amazing Race. Rachel and her Army helicopter husband Dave are one of four remaining couples in the running to win a $1 million grand prize. If the Browns win, I am sure that Judy will be happy to offer investment advice.

A KLAS report says almost half of inpatient providers plan to purchase a computer-assisted coding solution within the next two years, according to KLAS, mostly because of ICD-10. The most recognized vendors are 3M, OptumInsight, and Dolbey.

4-24-2012 8-05-20 PM

Epic beats IBM in the StarCraft II Championship, earning $5,000 for its charity of choice, Doctors Without Borders. The motto of the 12-0 team, captained by JDUB, is “Need Medical Attention?”

A New Zealand doctor is reprimanded for failing to tell a patient about an abnormal blood test result. The doctor said he hit the wrong key on the keyboard, but a public health commission said he should have used other software to remind him about the result.


Sponsor Updates

4-24-2012 7-57-37 PM

  • GetWellNetwork customer Celebration Health and its CEO, Monica Reed MD, will host all 350+ attendees on its campus to kick off GetWellNetwork’s user group meeting in Orlando next week.
  • CynergisTek partners with the law firm of Davis Wright Tremaine to create the HIPAA Audit Readiness and Response Solution Portfolio for OCR audit compliance.
  • NextGate announces the release of MatchMetrix v8 and NextGate Registries for Healthcare for accurate identity matching and health information exchange.
  • Cuyuna Regional Medical Center (MN) selects PatientKeeper technology to aggregate data from the MEDITECH system used by the hospital and the  ambulatory care offices’ Allscripts system.
  • Meritas Health Corporation (MO) selects eClinicalWorks EMR for its 72 employed physicians.
  • Lakeside Orthopedics (NE) chooses the SRS EHR for its five physicians.
  • eClinicalWorks opens a Chicago office to provide a central US presence. The city will host eCW’s user group meeting April 28-29.

Contacts

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

More news: HIStalk Practice, HIStalk Mobile.

EHR Design Talk with Dr. Rick 4/23/12

April 23, 2012 Rick Weinhaus 11 Comments

Overview with Details on Demand — A Versatile Design

Let’s return to the EHR design problem we were considering in my last post. You’re a member of an EHR development team working on a new high-level EHR user interface design that displays an overview of an entire patient encounter in a single screen view. Your current user interface requires clinicians to navigate to multiple screens.

In the new design, each category of patient data (Problem List, Medications, Exam, etc.) is assigned to a relatively small pane on a single screen. Your problem is how use these small panes to display each category of data in a way that still makes sense to clinicians.

Your team discovers that a design based on small panes with horizontal and vertical scrollbars doesn’t work. Now it’s back to the drawing board.

Instead of trying to design in the abstract, it becomes clear that you need to start by looking at actual patient data and finding out how clinicians use it. You again start with the redesign of the medication pane.

Your current EHR design requires clinicians to navigate to a separate screen to see a patient’s full medication data. Such a screen is shown below for a particular patient who is taking nine medications. I have broken it into two parts so that it’s readable in this blog format.

4-23-2012 8-32-35 PM

4-23-2012 8-33-11 PM

If you want to provide an overview for your users, how would you proceed? What information is most important? What information is only occasionally needed?

Here is where you need input from your clinician users — in technical jargon, your subject matter or domain experts. You observe and talk to clinicians using your product.

Some of them want to see just the names of the medications in the summary view, while others want to see the medication name, the dose, and the instructions. Most clinicians agree that the start date, the notes, and the prescribing physician data are less important, but that they should still be readily available on demand.

So, with this input, what information would you display in a summary view? How would you display more information on demand?

Clearly, there is no single design solution to this problem. Any design will require lots of trade-offs and compromises. One possible solution is show below:

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In this summary view, only the names of the medications are listed. By hovering with the mouse cursor in the header row, the clinician gets an expanded view, displaying the dose and instructions, as below:

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When the cursor is moved off of the header row, the pane contracts to its original size.

Alternatively, by keeping the mouse cursor within the header row, moving it to the right and again hovering (or by a similar gesture), the clinician could get the view below displaying the complete medication data:

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Note that this view has the same information content as the full screen view shown at the beginning of this post. Again, when the cursor is moved off the header row, the pane contracts to its original size.

There will be times when the clinician needs to keep an expanded view open while working with a different part of the screen. This could be accomplished by clicking with the mouse instead of hovering.

There will also be times when the clinician wants to retrieve information for just one data element or data field in a pane. The same convention of hovering with the mouse to get a temporary view or clicking to keep that view open until closed could be used:

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Again, by using a mouse hover or click, further details can be viewed without expanding the entire pane:

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And so forth:

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These expanding pane and pop-up designs are of course familiar to users in other contexts, but many widely used EHRs, even newer and cloud-based ones, don’t support them or don’t support them consistently.

All too often, the EHR interfaces that clinicians use on a day-to-day basis are based either on small panes with scrollbars or require navigation to multiple different screens. Such designs overload working memory, leaving little for patient care issues.

Unfortunately, guidelines for EHR usability can only address these kinds of high-level design choices in general terms. Furthermore, usability testing protocols do not provide a mechanism for comparing one design pattern to another. Hence EHRs that rely on small panes with scrollbars or require navigation to multiple different screens can still get good usability ratings.

While the overview with details on demand design pattern is versatile and powerful, a major potential problem comes with it — when a pane or data field expands, it obscures information in adjacent panes. I look forward to addressing this issue in my next post.

Next Post:

Pane Management

Rick Weinhaus MD practices clinical ophthalmology in the Boston area. He trained at Harvard Medical School, The Massachusetts Eye and Ear Infirmary, and the Neuroscience Unit of the Schepens Eye Research Institute. He writes on how to design simple, powerful, elegant user interfaces for electronic health records (EHRs) by applying our understanding of human perception and cognition. He welcomes your comments and thoughts on this post and on EHR usability issues. E-mail Dr. Rick.

Curbside Consult with Dr. Jayne 4/23/12

April 23, 2012 Dr. Jayne 5 Comments

Even before our friends at the federal level decided to delay implementation of ICD-10, I had been reading quite a bit about the different strategies health systems are planning to employ in support of the transition. With the delay, most vendors are continuing full speed ahead so that they can be sure to be ready for an eventual implementation. Although some advocate waiting for ICD-11, many feel it’s a foregone conclusion that ICD-10 will happen.

Most articles I’ve read have been about preparing your practice, ensuring coders are trained, and ensuring software is updated. There hasn’t been much talk out there about how to actually train physicians (who will continue to ultimately be responsible for the diagnosis and coding as they have always been) on the new system. For those of you who not playing along at home, the change from ICD-9 to ICD-10 gives providers approximately 138,000 additional ways to miscode a diagnosis.

I don’t think many people realize that providers are going to have to change the way they interview patients in order to obtain all the information needed to accurately assign a code. A recent article in Medical Economics points out some specific examples:

  • ICD-9 has a single code for a closed femur fracture. ICD-10 has 36 and it’s difficult to see how physicians or payers will really benefit from that level of granularity.
  • Histories will have to include information which isn’t relevant to most physicians, such as the part of the home in which an accident occurred.
  • When that information isn’t collected at the point of care, staff will either have to call patients to gather the details or risk lower reimbursements from perceived lower acuity when non-specific codes are used. Additionally, the article reminds us that in many practices there is high staff turnover, meaning that staff that are incurring training costs now may be working elsewhere in the future.

Some of the articles out there are oversimplified cheerleading. As much as I liked the article about why waiting is an option, another Medical Economics piece just made me aggravated. The nauseatingly titled “ICD-10: You can do it with these pointers”  offered such highly useful tips as these:

  • Overall, the types of medicine that will be most affected by ICD-10 include cardiology, cardiothoracic surgery, emergency medicine, general internal medicine, neurology, obstetrics, oncology/hematology, orthopedics, psychiatry, and vascular surgery.
  • Of the disease processes typically encountered by internists, the ones that are most affected under ICD-10 are cardiovascular disorders, cerebral infarctions, diabetes, gout, musculoskeletal conditions, neoplasms, respiratory disorders, and underdosing.

I don’t know about you, but those little “pointers” don’t make me think I can do anything but contemplate how long I have before I can actually retire. I think many of us are pinning our hopes on software and technology vendors – hoping that notes can be parsed and prompts constructed to ensure all necessary information is gathered during the patient encounter.

Often, however, the patient doesn’t even know the information required. For example, was the myocardial infarction inferolateral or basal-lateral? Did it involve ST segment elevation? In order to ensure coding accuracy, it seems like there will be much time spent in hunting old records lest we risk being “dinged” for poor coding.

Just to make things more interesting, I noted that the infographic provided in the “it’s OK to delay” article has an error in it:

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My other handy-dandy coding reference at ICD10Data.com lists the codes a bit differently:

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I’m sure it was easy for some non-medical proofreader to confuse “subsequent” with “sequelae,” but whenever coding is at play, the devil really IS in the details.

I want to invite each of you to share your favorite ICD-10 codes. I’ll run the funniest in upcoming posts. Until then, I leave you with a challenge:

Say I was at the Pike Place Fish Market and I was struck in the left shoulder by a mackerel. How would I code that? And would it make a difference whether it was a mackerel or a shark? What if the mackerel wasn’t flying through the air, but was being swung at the time? Does it really matter? E-mail me.

Print

E-mail Dr. Jayne.

Thomson Reuters Will Sell Healthcare Unit to Veritas Capital

April 23, 2012 News 2 Comments

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Thomson Reuters announced this morning that it has entered into an agreement to sell its healthcare unit to Veritas Capital for $1.25 billion in cash. The company offers analytics services, clinical decision support, an HIE solution, and the Micromedex drug information reference.

Robert McKeon, chairman of Veritas Capital, was quoted as saying, “The Healthcare business of Thomson Reuters is the preeminent healthcare analytics company in the industry today. The acquisition will provide us with a unique and exciting opportunity to add a truly outstanding business and world-class management team to our portfolio and we look forward to building upon our experience in the healthcare analytics market. We look forward to welcoming the business and its talented employees, including its talented management team led by Mike Boswood, into the Veritas family.”

Monday Morning Update 4/23/12

April 21, 2012 News 9 Comments

4-21-2012 7-41-21 AM

From Radar Love: “Re: Todd Cozzens. Leaving Optum after the company’s Picis acquisition in 2010 and his role change to running its Accountable Care Solutions business.” Verified. Todd confirms that he’s moving to Sequoia Capital this week, although he will continue to service in an advisory role with Optum. Sequoia is a legendary Silicon Valley VC investor that was Apple’s first backer and a player in household names like Oracle, Google, LinkedIn, and YouTube. I checked the company’s site and they have healthcare IT investments as well, most of which are in fact HIStalk sponsors even though I hadn’t previously noticed the connection (AirStrip, Healthcare Quality Catalyst, and ZirMed). At Sequoia, Todd will work with some of its portfolio companies as a board member and mentor, as well as a deal scout. Todd and I have penciled in time for a chat once he’s gotten his feet wet there since I’m interested in their view of the healthcare IT world. Trivia I learned from checking Wikipedia: the company estimates that 19% of Nasdaq’s value is made up of companies Sequoia funded. Todd’s HIStalk history is almost as long as mine – he was my second interview way back in 2005 (everybody was turning me down back then as a waste of time and Todd had to pull rank on his marketing people, who were appalled at the idea) and as one of HIStalk’s first sponsors.

4-22-2012 5-54-55 PM

From Recovering Physician: “Re: Lynn Vogel, MD Anderson Cancer Center. He has left. No word on whether he has accepted a new CIO role.” I received this over the weekend and wasn’t able to check with Lynn, but his LinkedIn profile sees to indicate that his employment at MDA ended this month. I’m sure I’ll have an update, possibly by Monday. UPDATE: Lynn confirms that he has stepped down, but isn’t quite ready to announce what he’s doing next.

4-21-2012 6-19-03 AM

Respondents were almost evenly split on the subject of hospitals choosing not to hire people who smoke or who are overweight. New poll to your right: how has HITECH affected patient outcomes?

Listening: reader-recommended Of Monsters and Men, super-catchy and creative alt-folk (think Mumford & Sons) from some cheery young folks from Iceland. Lead singer Nanna Bryndís Hilmarsdóttir sounds a bit like Dolores O’Riordan of The Cranberries, right down to the enchanting lilt in her accent when she sings. They’re so cute and fun that not only do you want to give them a group hug and carry them around in a handbag like a Shih Tzu, they may end up being Iceland’s ABBA. Their small US tour starts in May, and if they only sound half as good as they did recorded all-acoustic live in their living room, they’re going to kill.

 

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An item that’s been on my to-do list forever is to enlist volunteers for what I’m grandly calling the HIStalk Advisory Board. What that means: I will e-mail you every 1-2 months with just 3-4 questions about what’s going on in your world – interesting product issues or needs, rumors heard, important issues I’m not writing about, etc. You do a quick reply and let me know what’s up, which will help me keep focus on what’s important to readers. I will not spam you, identify you in any way, or otherwise bug you. If you work for a hospital, clinic, or physician practice and can spare a couple of minutes every few weeks to help me out, plop your information here and accept my thanks. I may sweeten the pot with random prize drawings or something like that if it works out.

 

4-21-2012 6-45-14 AM

Welcome to new HIStalk Platinum Sponsor OTTR Chronic Care Solutions. I just ran my interview with CEO Lou Halperin, in which you may notice that I was fascinated with the company’s focus on transplant centers since I know next to nothing about transplants (I also learned that the company pronounces its name as “otter,” so there you go.) OTTR is the dominant player in supporting the clinical and administrative software needs of solid organ transplant centers, which as Lou points out are really like ACOs in that they’re paid a flat fee for their services, they follow patients indefinitely, and they need to assemble clinical information from a variety of providers and care venues to make clinical decisions. With new investment and leadership (not to mention a name change for the former HKS Medical Information Systems), OTTR is widening its sphere of influence into logical adjacent sectors such as bone marrow transplant and ventricular assist devices. The company has over 70 customers, manages 300,000 patients, supports 250 interfaces, and offers 24×7 technical support. They just announced that Porter Adventist is implementing its system in a cloud environment integrated with CORHIO, with employees using iPads to track patients, manage donor calls, make rounds, and to complete the forms that CMS requires. Thanks to OTTR Chronic Care Solutions for supporting what I do here.

 

4-21-2012 7-23-54 AM

Vitalize is celebrating its tenth year with a Disneyworld event. Founders Mary Pat Fralick (left) and Danny Arnold (right), along with Employee #3 Wendy Kadner (middle), were surprised with a cool-looking cake. The mouse ears brought back bad memories of my work trips involving MCO, the worst airport in the world for business travelers. Inbound planes were always crammed full of obnoxious kids jacked up on sugar and Mickey Mouse adrenaline, bouncing off the cabin walls with minimal supervision from their vacation-dreamy parents, any of whom might at any given moment be wearing those ears to demonstrate their temporary free-spirited insouciance. Outbound, they clogged up MCO security lines with inexpert procedure (what, we have to take our shoes off and put our carry-on bags through the metal detector?) and an abundance of backpacks and souvenir crap, but at least were quiet, newly morose at the prospect of leaving their corporately crafted fantasy land and heading back to reality.  

Weird News Andy finds it ironic that pathologist blames the death of a New Zealand woman on her two-gallon-per-day Coca Cola habit despite the company’s historical use of ad slogans that suggest Coke makes you healthy and happy (“Coke adds life, “Life tastes good,” “The Coke side of life,” and “Life begins here.”)

 

4-21-2012 7-47-18 AM

Boston Children’s Hospital releases its iPhone/Android app, which include wayfinding, a physician directory, appointment setting, and a patient portal with access to the patient’s medical records. 

Liverpool Heart and Chest Hospital chooses Allscripts Sunrise, the company’s first sale to a UK trust. Two other trusts choose this week from finalists Allscripts, Cerner, and Epic. The company hasn’t confirmed, no doubt saving the news for its May 7 earnings announcement.

A project manager of South Carolina’s HHS is arrested for downloading the personal information of 228,000 Medicaid recipients. He won’t say what he planned to do with the information, which involves a fourth of the state’s Medicaid population. He got caught only because of his poor work performance reviews. The incident has become a political football as the Republican Party was quick to point out that he is (or was in the past – accounts vary) a member of the Democratic Party’s county executive committee. Screen captures of the Democratic Party’s site show that his name was quick removed after his arrest. All of that is irrelevant unless he was planning to use the information for campaign purposes.

University of Arkansas for Medical Sciences announces that the information of 7,000 patients was improperly handled when a physician e-mailed a worksheet of patients to an non-employee analyst for billing purposes.

 

4-21-2012 8-24-07 AM

I’m both encouraged and puzzled that the embarrassing alpha pagers we use in healthcare are such a hot topic all of a sudden. Coincidentally, I watched one of the great “Beeper King” episodes of 30 Rock last night, where Dennis tries to convince Jack that technology is cyclical and beepers will eventually stage a comeback over cell phones (best lines, both from Jack: “Gosh, I hope you got a picture of that with a camera on your beeper.” and “I’m expecting a call from 1983.”) John from EMR and HIPAA sent info on docBeat, a new iPhone app in beta that provides two telephone numbers on one device, voice to text, secure text messaging (including future dating for non-urgent messages), and a directory service. I’m sure there are other products as well, and I’ll defer to Travis of HIStalk Mobile, who is checking them out. The main problem I see is poor cell coverage inside hospitals, where somehow crappy technical dinosaurs like pagers seem to work more reliably (or at least more predictably). The issue of user-to-user critical messaging is becoming important, not only because pagers are dying, but because so is BlackBerry and its BBM capability.

GE Healthcare announces Q1 numbers: revenue up 5%, net income up 10% to $585 million. Overall, GE reported revenue that was down 8% and EPS of $0.34 vs. $0.33 excluding one-time costs.

Microsoft’s Q4 numbers: revenue up 6%, EPS $0.60 vs. $0.61. Windows revenue was up a little despite flat or declining PC sales, as were sales to businesses, but Windows Phone didn’t do much and MSFT’s videogame-related sales dropped 16%.

Vince has a fascinating personal story to tell about his days at MedTake in this week’s HIS-tory. Like he says in it, it’s vendor insider stuff that should be interesting to providers they’re trying to sell to.

I’m trying to decide if the weekly review I’ve done the last couple of Mondays is worth the couple of hours it takes me to write it. I’m not feeling ambitious at the moment, so I’m going to take a break from it. I have a lot of great ideas if I ever quit my hospital job, but in the mean time, I’m finding it really hard to keep all of life’s plates spinning.

E-mail Mr. H.

Time Capsule: Is Healthcare IT Really "The Right Thing to Do?" Prove it.

April 20, 2012 Time Capsule 2 Comments

I wrote weekly editorials for a boutique industry newsletter for several years, anxious for both audience and income. I learned a lot about coming up with ideas for the weekly grind, trying to be simultaneously opinionated and entertaining in a few hundred words, and not sleeping much because I was working all the time. They’re fun to read as a look back at what was important then (and often still important now).

I wrote this piece in April 2007.

Is Healthcare IT Really "The Right Thing to Do?" Prove it.
By Mr. HIStalk

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I like to shock people by telling them that a hospital is basically a clean hotel with lots more staff, lots worse service, and a nightly rate that no one in their right minds would voluntarily pay for an uncomfortable bed, incessant noise, and bad food.

Going with the hotel analogy, if you owned a mid-priced hotel in a highly competitive market, what would motivate you to make an IT investment?

  • It would perform some function that increases customer loyalty or occupancy rates, thereby increasing profits
  • It would reduce costs and allow more aggressive pricing, thereby increasing profits
  • It would improve quality in a perceptible way that would support higher room charges, thereby increasing profits

See the common theme?

None of these motivations work for hospitals. We’re already full, even those hospitals with poor performance and low satisfaction scores. Patients don’t really care if we automate or not, even though we keep trying to convince them how wonderful it is. IT rarely reduces costs for a given organization and hasn’t put the brakes on healthcare spending.

Worst of all, despite stacks of arguments trying to prove that technology investments improve patient outcomes, evidence is skimpy at best.

That leaves two reasons to invest the many millions today’s IT solutions often cost. Either (a) it’s a cost of being in business, or (b) it’s the right thing to do.

"Cost of being in business" is the lazy answer that IT vendors love. Walmart eats companies for lunch that hide behind what they think are fixed costs that Walmart can eliminate. A few good Rollback Specials and Mr. "Cost of Being in Business" isn’t for much longer. Luckily (for everyone but patients and payors, anyway), hospitals collectively have few original ideas, so the competitive threat is minimal.

Walmart invests legendarily in IT, but they’re not throwing money at the same off-the-rack systems that every other department store uses (like hospitals do.) Without the motivation of competitive advantage and eventual increased profits, why bother? Spend the money on nicer bathrooms or friendlier cashiers instead. The payback is more certain.

"It’s the right thing to do" is noble-sounding, but easily riddled with holes. You can’t prove it’s the right thing to do, can you? If even one hospital that didn’t spend $40 million on a clinical system has better outcomes than yours that did, then obviously it isn’t just about IT.

Most hospitals wouldn’t touch an expensive new drug without reams of studies proving its safety, efficacy, and cost-benefit ratio. Those same hospitals, however, continue to buy IT on faith alone, using either the "cost of being in business" or "right thing to do" rationale. If IT were a drug, we’d ban the chippy blonde sales rep from our hospital.

All of this would be irrelevant if patients found IT valuable. My doctor doesn’t use an EMR, but I’m not about to switch to a different one. My dentist doesn’t use computers except for scheduling and billing, but I’m sticking with him. When I need a new provider, I have zero interest in whether they use computers or not.

In other words, I’ll give lip service to laypeople about the wonderfulness of healthcare IT, but my feet vote differently. I’m the Chrysler sales guy who parks his Toyota around back and hopes the prospect doesn’t notice.

Maybe today’s IT systems really do improve outcomes or cost. If so, then I challenge vendors to prove it and customers to demand that proof before buying their wares. Otherwise, spend the money on staff, training, and equipment instead because we know those improve quality and efficiency.

HIStalk Interviews Lou Halperin, CEO, OTTR Chronic Care Solutions

April 20, 2012 Interviews 2 Comments

Louis E. Halperin is CEO of OTTR Chronic Care Solutions of Omaha, NE.

4-20-2012 7-16-33 PM

Give me a brief overview about yourself and about the company.

I’m CEO of OTTR Chronic Care Solutions. I’ve been in healthcare about 25 years and worked on just about everything there is technology-wise except for in the pharma space.

The company was founded as Hickman-Kenyon Systems in the solid organ transplant business. We’ve expanded that after acquiring the company last year into OTTR Chronic Care Solutions. When you manage patients that are awaiting organ transplant, they’re generally the same types of disease states with chronic conditions – liver disease, kidney disease, all the way up to a heart failure. We think it’s an important niche in the marketplace, particularly in light of the move to accountable care organizations and the changes in insurance.

 

I was intrigued by your background. You got an engineering degree from one of the best schools in the United States, you’ve got patents, you’ve worked for big companies. I’m curious how your life’s journey took you to where you are today.

I worked for a few big companies, being Medtronic, GE, and Philips. I got restructured out of Philips a few years back based on the job I did and being remote from the corporate offices.

I was very fortunate that I had built some relationships here in Nebraska with the medical center through an angel investing group that I’ve been involved with. I started doing consulting for them. I found HKS Medical Information Systems and we put together a partnership with an equity partner out of Dallas and a business partner who’s our chief operating officer, Paul Markham. We acquired the business last fall because we saw a great opportunity to grow it. It’s the right place at the right time. All the things I did working for big companies prepared me to lead this business.

 

It might be a surprise to the person who spends most of their time thinking about healthcare IT in hospitals and physician practices that there is a transplant industry out there and it has specialized needs that may not be met by traditional software. How big is the transplant industry and how are its IT needs different?

If you look at solid organ transplant, there are approximately 254 solid organ transplants centers in the US today. What most people don’t understand is that transplant was the original accountable care organization. For more than 20 years, CMS has been making lump sum payments to solid organ transplant centers for the care of patients, so you have the full Medicare cost report and driving that forward. 

Your patient may travel 100, 200, 300 miles to solid organ transplant center to be evaluated and put onto a transplant waiting list. You may be on that list for anywhere from months to years to as long as a decade, depending on which organ is at risk and what your absolute condition is. Because of that, you need to track the data around those patients very differently. You’re not looking at it as one episode of care and the next. You’re looking at it over a 3-, 5-, 7-, 10-year period of time. That’s the same in the post-transplant world.

The other thing that’s different is that the data that you’re looking at isn’t just from the healthcare system where you’re going to be transplanted. It maybe from a laboratory that’s local to your community. If you’re a kidney patient, a local nephrologist may be following you and providing you your direct day-to-day, weekly, monthly care. 

You may only be seen at the transplant center once a year every two years for a follow up. Yet when an organ comes available that has your name on it, that surgeon only has a few minutes to make a clinical decision about that organ — whether it’s right for you and whether they want to accept it.  Therefore, they want to see all the data, not just from that one institution.

For a lot of healthcare systems that have transplant, their profitability really depends on transplant. There was a major Midwestern integrated delivery system that we were visiting where the transplant surgeon ensured us of roughly 40% percent of the total profit margin for the healthcare system came from having transplant. It’s not just from the surgery, but it’s what it does to your labs, pathology, bringing in patients for evaluation and such. Centers that have transplant as part of their business — it enhances their profitability and helps them deliver those service lines that aren’t profitable. It’s a challenge, but that’s what we’re seeing, that’s why we love what we do. We think we can help people.

 

I supposed you have a finite list of prospects since there are only 254 of them. Do you have competition, or are you the only recognizable name in the transplant niche?

There are few other names and some companies that do it. They’ve grown out of a couple of other centers that provide software. But it’s a challenge, because not everybody understands that there are special needs in transplant. Again, it’s the longevity of time of the data that you’re looking at it. It’s how physicians want to be able to see it and how surgeons want to be able to see it differently. So there is some competition. There are companies that grew out of Ohio State and UPMC. 

There are EMR companies that want to try and play in the space with us. Some can be credible about it, but it’s really a different way of looking at data than what EMRs tend to do.

 

I would have assumed that this a critical, regulated, and not very large market that EMR vendors would steer clear of. I see from your literature that you’ve interfaced with systems like Cerner and Epic. Is it a difficult sale to make when you tell a new Epic customer that they now need a best-of-breed transplant solution?

We’ve been reasonably successful. I can point to a couple of sites in Florida where Epic was the EMR of choice and the departments wanted their own solution. We’re currently in negotiation with another center that has Epic. Epic has a solution that they’ve brought to the market around solid organ transplant, but we’ve still had pretty good success there.

But it’s a challenge. Epic’s a great company. They’ve got great software for what it is that they do. It’s competition, but I told the team here that I’d just as soon compete against the best than I would against anybody else. It has been a fun fight.

We think that we’re different. If you were to ask me where the EMR is great, I’d say when you’re documenting inpatients in a bed of if they’re in your clinic as an an outpatient and you’re going to bill for those services. EMRs are the absolutely correct place to be able to document on your patient.

If you’re looking at data that might Meaningful Use Stage 2, Meaningful Use Stage 3 where it’s a remote lab, it might be a remote follow-up, it maybe follow up notes from a local nephrologist or hepatologist who’s following that patient because they happen to live … I’ll make it local here in Nebraska, where we’re headquartered. They might be out in Scottsbluff, which maybe even easier to get to Denver than it is to get in Omaha if you were going for a transplant. But those patients are not going to travel 300 or 400 miles to get their regular follow-ups for care. It just doesn’t work in an EMR. Again, we will see what happen as Meaningful Use Stage 2 and Stage 3 get here, but as of right now, we’ve been doing this for close to 20 years and we’re very comfortable at being able to track that data.

 

Transplants have gotten to be almost routine, I guess. You don’t hear a lot about it except when they do one of those donor chain matches or somebody gets in trouble for poor record-keeping or someone like Dick Cheney or Steve Jobs gets a transplant. Do you need special knowledge on your end to deal with procedures that are somewhat political, always expensive, and critical to both the recipient and the person who didn’t get the transplant?

One of the things that I found in 25 years in healthcare is that having domain expertise, no matter what it is you’re selling, is critical — whether you’re in cardiology, radiology, oncology, or transplant. I think that our customers look to us to be able to help guide them as to how to use a transplant database to keep track of the data that they need. 

You look at it as a highly regulated part of the business, also. There’s CMS regulations and audits which can cause a program to be shut down. There’s a group out of Virginia called the United Network for Organ Sharing or UNOS, which is also a regulating agency. Every patient that’s listed for a solid organ transplant is listed according to the rules of UNOS. They get organs based on hierarchy and priority that UNOS has established for allocating organs out. It’s not just matching a type of organ that’s there.

You mentioned that Cheney received a heart within the last couple of weeks. There are only about 2,000 donor hearts that are available for transplantation every year in the US. That limited number is one of the reasons why Ventricular Assist Devices or VADs have grown in use as a destination therapy.  

Everybody says Dick Cheney was too old or he only got the heart because he’s a former vice president of the United States. When you look at the rules that are there, he got a heart based on his condition, based on his likelihood of success in a transplant, based on how it matched to that organ. He was the best person listed in a region where that heart could transplanted to be able to receive that heart. 

There’s all this regulation. That’s really why we’ve had great success in staying in the centers where we are and co-existing with EMRs even as things change. We help our customers to be able to meet their regulatory requirements. We helped them meet CMS. We helped them present the data that they need and we help them present the data they need to make their UNOS certification.

 

Steve Jobs moved to Nashville because he would be higher on that area’s waiting list, which is allowed. Is the transplant business competitive at all, other than geographically, or is it just one big transplant center per region?

It depends on where you are. If you go up to the Northeast and you go into New York City, you can find the three major hospitals directly in New York City that all do solid organ transplant — Cornell Presby, Mount Sinai, and Montefiore Hospital.  But even when you then get outside of New York City, you can circle down into smaller communities where there are transplant centers. Kidney being the dominant transplant center, followed relatively closely by liver programs and then heart, lung, etc. 

It really depends on where you are. When you get west of Omaha or west of the Twin Cities in Minneapolis and St. Paul, the number of transplant centers certainly decreases until you get to California and the West Coast. It all depends on your geographic location. The ability to get yourself to a transplant center if an organ becomes available is what’s critical. The reason why Steve Jobs could continue to live out in California while being listed in Tennessee is that he had access to a private plane. When that organ became available, the clock was ticking. He was rushed out to the airstrip and they got clearance to fly. That’s how he got to Nashville for his liver transplant.

 

Does the hospital keep its own list or is there a registry or bureau that just tells the hospital, OK, you’re getting a patient?

That process is done by UNOS. The whole organ procurement side of the business is not something that we manage directly with our software. Throughout the US there are groups known as OPOs, or organ procurement organizations. They’re the groups that are out there when someone has a car accident. When an organ is becoming available, they’re there at the hospital to be able to help instruct removal of the organs. Those organs and the data about the donor is sent up to Virginia to UNOS. It’s then used to match against the lists that are maintained by UNOS and then it propagates out to the appropriate center in the region where that organ is available.

 

If you’re on the list and not sitting by the phone at that time, I guess you could miss your chance.

To a certain degree, yes. We were visiting with customers last week in the state of Florida. They were talking about what the transplant coordinators do and how they use our software to know about the patients and where they are. Often, if there is a separate transplant database, the phone number for the patient or for the closest relative who’s their contact is probably more accurate within the software than it may even be within the hospital registration system. That’s because the critically of reaching that patient is so important. 

That’s one of the challenges when you start looking at how you integrate into the environment in the hospital. How are you updating those ADT transactions about that patient information? That transplant coordinator may know better than central registration.

 

In a short period of time, the company was acquired, you got involved, the name was changed, and then the offerings where expanded to move in to bone marrow transplant and ventricular assist devices. What’s the big picture and what other changes do you see coming?

I think you mentioned two really interesting areas in bone marrow and VADs. The bone marrow product was actually in development before we came in. It’s been a three-year journey to really get that up to snuff. It’s an interesting area. Almost the only thing that bone marrow transplants and solid organ have in common is the word “transplant”, but it’s still the same type of specialty care of looking at very detailed clinical workflow, the need for discrete data, a lot of follow-up for patients that may or may not be local to your environment. The same thing with VAD. It was a logical outgrowth of the solid organ transplant for heart.

The next phase is to continue the work on chronic disease management, like what was here when we came in to the business, but really needed to be expanded. Heart failure is one those things that CMS is going after strongly. I think I saw $7.5 billion over the next four years is going to be taken down from lack of compliance within all of the advanced heart failure programs in the US. 

What most people really don’t understand about heart failure is that the heart is usually the last organ to fail. It usually starts with kidney problems or renal failure, peripheral vascular disease, maybe pulmonary dysfunction. All disease states that we help clinicians to manage with our software. Then you start going into the other concomitant diseases of heart failure, which are gout, diabetes, and other types of circulatory problems. All things that we’ve had some level of offering for within the product and that we’re going to continue to expand and work towards. 

The future is going to be to help people be able to met their JCAHO requirements around advanced heart failures, CMS reporting requirements, and to help manage those patients. Again, even in an advanced heart failure center, those patients may not be being seen in your clinic every time, every visit. They may be coming from a hundred miles away looking for care. You’re going to try and do that, but they maybe getting their labs locally, they have home health follow-up, there may be a lots of other places with data that you’re going to want to see as a clinician.

 

Any concluding thoughts?

I think it’s just a really interesting space. If you look back at HIMSS 2012, there was an article that came out from Dr. Antonio Linares from WellPoint, the medical director there, talking about the fact that in the future accountable care world, an EMR may not provide all of that data that you need in order to help the insurers meet their requirement. We think that we provide a solution that fits into a part of that niche. There’s a certainly a need for HIEs to fill another part of that niche. 

I think the message that we have — and it’s not just about our software, but a lot of clinical solutions that are out there — is that EMRs are great and they’re going to be important in terms of managing healthcare moving forward and helping us to control cost, but there’s another layer that needs to be there to support ACOs and what it’s going to take to help us really reform healthcare and control cost and really get better clinical outcomes. That’s why we’re here, and that’s why I’ve committed 25 years of my life to healthcare and healthcare technologies.

News 4/20/12

April 19, 2012 News 10 Comments

Top News

4-19-2012 4-20-06 PM

Cerner CEO Neal Patterson makes the cover of Forbes in a piece called Obamacare Billionaires. It’s generally positive given the awkward situation that it’s a right-wing magazine covering a fellow rich guy making big bucks from left-wing healthcare policies. There were some fun background facts I hadn’t heard:

  • Neal was moved up to first grade in his boondocks school because otherwise there would have been only one male student in the class
  • The three founders came up with the idea of starting Cerner while studying at a picnic table for the CPA exam as Arthur Anderson employees
  • The word “cerner” is Spanish, meaning “sift”
  • The magazine says Neal is worth $1 billion, although SEC filings show him directly holding less than half that amount in the form of CERN shares
  • The infamous “tick, tock” e-mail is of course mentioned (you just know that, as with Jim Morrison’s grave, former Cerner associates will be spray-painting it on his tombstone for decades after Neal has checked out)
  • The reporter saw the fancy Vision Center demos of Millennium, then observed firsthand the “klutzy” (I assume they meant “clunky” since “klutzy” usually describes people, not objects) real-life version running at Truman Medical Center, although the hospital still said mostly good things about it

Here’s a snip from the article:

Cerner’s new offerings, on display at its gleaming headquarters with a heavy dose of skilled salesmanship, have the whiff of the future. The company is giving hospitals, for free, software to help predict which patients will get deadly, hard-to-treat blood infections. A new type of patient record is quickly and automatically searchable, even if the data go back decades. A fictional case study shows how a heart attack patient could be cared for in this new system, starting with wireless monitors that he’s wearing when his heart rate speeds up; through a visit with a nurse who talks to specialists using an iPad and FaceTime; to improved versions of the bar-code-reading devices at Truman.

 

4-19-2012 5-57-57 PM

Like in real life, Epic and Judy Faulkner are everywhere Neal turns, even within the current edition of Forbes. She gets a piece called Judy Faulkner: Health Care’s Low-Key Billionaire. There’s not too much new there for those of us who already know the Epic story – as usual, Judy declined to be interviewed – but it’s a fun read. One interesting factoid: when Forbes estimated her net worth at $1.7 billion, she denied to them that she has reached the billionaire club, with her spokesperson saying that Judy owns less than 40% of Epic’s shares (although as could be the case with Neal’s money, there are many ways to make that statement honestly while still being misleading, such as not counting shares held in family trusts or other ownership that’s indirect but controlling). The hardest fact to believe: Judy is 68 years old, which is about 15-20 years more than she seems to be. There’s an intriguing mention about Kaiser Permanente’s insistence that it be given equity in Epic as a condition of signing the contract for its $4 billion HealthConnect project, to which Judy provided a two-letter reply: “NO.”

A sample of the article:

Beneath the rock star antics on view strictly for customers, Faulkner is not eager to telegraph her newfound wealth and power. She turned down our request for an interview. “She doesn’t want the spotlight on her,” explains her spokesperson. Interviews with people who know Faulkner paint a picture of a forceful, yet modest woman. Leonard Mattioli, an Epic board member, recalls chiding Faulkner for driving an old Volvo. “I told her next time you buy a car, take a man with you,” says Mattioli, the founder of American, a midwestern retailer of appliances and electronics. A few years later, Mattioli introduced his fiancée to Faulkner. She proceeded to pepper her with questions Epic typically asks prospective employees: “How many square yards of astroturf are there in the U.S.? Which person, dead or alive, would you most like to have lunch with?” Turning to a bewildered Mattioli, she said “next time you take a wife, take a woman with you [for advice].”

Both articles are interesting primarily because the average Forbes reader has probably never heard of Patterson or Faulkner, much less been aware that healthcare IT has created a couple of billionaires (well, the articles didn’t really make a convincing case that either is a billionaire, but I think we can agree they’re doing pretty well considering they sell almost entirely to non-profit organizations). I wonder if some big wheels in stagnant industry sectors won’t suddenly develop a healthy curiosity (no pun intended) about what healthcare IT is all about now that they’ve seen dollar signs?


Reader Comments

inga_small From TheRock: “Medicaid MU programs. Have any states begun issuing 2012 payments for eligible hospitals?” I’m not sure. CMS issued a statement this week announcing that Louisiana’s Medicaid EHR incentive program was the first to issue payments for “Eligible Professionals.” Meanwhile, the Louisiana Department of Health and Hospitals says they are the first state in the nation to issue (any) payments for the second phase of the Medicaid EHR incentive program. Readers?


HIStalk Announcements and Requests

inga_small HIStalk Practice highlights from the last week: Emdeon CEO George Lazenby will lead Nashville’s IT Recruitment Task Force. MGMA opens registration for its 2012 conference in San Antonio. Why physicians ignore alerts in their EMRs. Hayes Management Consulting’s Rob Drewniak offers tips for successful change management in healthcare. Sign up for e-mail updates while checking out the news; it ensures you stay in the know and makes me feel loved.  Thanks for reading.

 

4-19-2012 10-39-14 AM

inga_small More tales from my recent medical office visits. I wasn’t too surprised that the specialist’s office used paper charts, but I was shocked when they asked me to sign an insurance form so they could mail the claim to the carrier. Maybe I am out of touch with reality, but I thought 99.9% of practices file electronically. I might note that the claim was only for the professional fee and I assume the facility (part of a large, for-profit hospital chain) has more sophisticated technology in place. Now that I think about it, I see a great opportunity for the healthcare system to offer some technology subsidies to their providers.

Here’s one of those uncomfortable IT office moments. You get a new manager (or a new employee to manage), someone you’ve ignored in many previous close encounters in the elevator, restroom, or hall because they’re just some faceless person you don’t really know and don’t care to know. Once the org chart umbilical cord has been attached, however, it becomes obligatory to be their BFF with each chance encounter in making small talk and calling them with gusto by the name that you just learned.

On the Jobs Board: Implementation Project Manager, Director of Marketing, HL7 Business Analyst. On Healthcare IT Jobs: PACS Application Coordinator II, Cerner Orders iView Consultant, Soarian Financials.


Acquisitions, Funding, Business, and Stock

4-19-2012 6-05-12 PM

Mediware closes its $2.2 million acquisition of Cyto Management System, an oncology management system, from Holland-based Cobbler ICT Services BV.


Sales

ProMedica (OH) selects athenahealth’s athenaCollector and Anodyne Business Intelligence Services for its 400-physician network.

The National Institutes of Health awards a sole source contract to Carestream Health for its Vue RIS.

4-19-2012 6-06-32 PM

Porter Adventist Hospital (CO) signs an agreement with OTTR Chronic Care Solutions to deploy its Transplant Care Platform.


People

4-19-2012 5-09-08 PM

CareCloud hires Brad Blakey (NextGen) as VP of sales.

4-19-2012 5-09-45 PM

Trinity Mother Frances Hospitals and Clinics (TX) names Jeffrey Pearson (Bon Secours Health System) VP and CIO.

4-19-2012 5-24-17 PM

Holon appoints Dyanne Tiller (Bottomline Technologies) its quality assurance and release manager.


Announcements and Implementations

Community Health Network (IN) says it will have its $120 million Epic system in place by November.

4-19-2012 5-26-47 PM

NovoPath announces that its anatomic pathology system, which is certified as an EHR Module, can now download pathology patient reports to iOS and Android devices.

Cerner will collaborate with Advocate Health Care to develop a solution that integrates Advocate’s administrative and electronic health information to create predictive models for health outcomes.

CareFusion and Cerner announce the release of a bidirectional solution connecting the CareFusion Alaris infusion pump system with Cerner Millennium EHR. The offering is already in place at Oklahoma Heart Hospital.

 

4-19-2012 5-22-06 PM

Intelligent InSites releases its InSites Connect RTLS mobility solution as an iPhone app.

 


Other

Hospitals recognized on Thomson Reuters’ 100 Top US Hospitals in 2009 or 2010 had more advanced levels of EHR adoption, according to HIMSS Analytics.

The CEO of Yuma Regional Medical Center (AZ), which goes live on Epic on May 1, says the organization has been experiencing staff changes — including layoffs — as a result of improved procedures and technology. The implementation has affected 33 core employees and 45 adult acute care positions.

And in still more Epic press, its undefeated newcomer StarCraft II team faces IBM in the After Hours Gaming League grand finals this Saturday. Good luck, guys (am I safe in assuming that the electronic warriors are all male, and also likely to have no conflicts with a Saturday night game?)

4-19-2012 6-09-24 PM

Emory Healthcare (GA) announces that 10 old computer disks containing information of 315,000 patients are missing, either misplaced or stolen from the unlocked cabinet in which they were stored (it’s in a locked office, though.) Unlike most breaches, Emory didn’t do anything eye-rollingly wrong, and in fact their response seems thoughtful and thorough.

The University of Ottawa Heart Institute posts an RFP for a mobile clinical communications system, specifically nurse hand-held devices that contain a physician directory.

A Louisiana doctor is sentenced to six years in prison for possession of child pornography. He was the medical director of Intra-Op Monitoring Services, whose doctors monitor neuro surgeries in remote hospitals. The company previously admitted that it billed for services that weren’t performed, sometimes not even bothering to make a connection to the remote site or having technicians using the doctor’s logon to make it look as though the monitoring occurred.

Weird News Andy, noting this cash-strapped hospital in Canada that asks patients to do their own laundry on cash-only machines, ponders the likelihood of a coin-operated MRI.



 

Sponsor Updates

4-19-2012 4-58-18 PM

  • Account exec Brady Taylor of electronic forms and workflow automation vendor Access drops by Tucson Medical Center to present an iPad to Rita Cartwright, senior business systems analyst. She was an HIStalk Booth Crawl winner at the HIMSS conference in Las Vegas.
  • PatientKeeper and Geonetric partner to offer integration of Geonetric’s Patient Portal and PatientKeeper’s Physician Portal.
  • The Academy of Managed Care Pharmacy presents First Databank VP Tom Bizzaro with its The Grassroots Advocacy Award.
  • Beacon Partners offers a new white paper, Accelerating the Development and Adoption of Affiliate EHR Programs
  • Versus hosts an April 24 Webinar featuring Memorial Miramar’s integration of RTLS with Epic.
  • Lifepoint Informatics announces its participation at next week’s CLMA ThinkLab ’12 conference in Atlanta.
  • Norton Healthcare (KY) contracts with CSI Healthcare IT for 85 go-live resources for their Epic activation.
  • The University of Waterloo will award NextJ Systems founder William Tatham an honorary doctorate during its spring convocation ceremonies.
  • MedAssets announces the general availability of its Collections Management solution.
  • maxIT Healthcare profiles Stanly Regional Medical Center (NC), which successfully deployed EHR and RCM with assistance from maxIT.
  • Minnesota Eye Consultants selects the NextGen Ambulatory EHR for its 22 providers.

EPtalk by Dr. Jayne

Thomson Reuters releases its annual “100 Top Hospitals” report, which purports to recognize the best US hospitals. Measures include organizational performance, operational efficiency, and financial stability.

 

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The HIMSS13 call for proposals is open now through May 30. I don’t know about you, but I’m thinking about skipping HIMSS next year and just showing up for HIStalkapalooza. My health system refused to pay for my trip this year, feeling that it’s just not valuable for the cost. I’m sure budgets won’t rebound this year. Who else out there thinks it’s getting a bit pricey?

An article in the Journal of the American Medical Informatics Association looks at the use of health information exchanges in the emergency department environment. Researchers (including Dr. Jayne’s secret crush #3, Dr. Mark Frisse of Vanderbilt) found that HIE access was associated with cost savings and reduction of admissions.

American Medical News ran this piece on EHR alert fatigue. I know several of the people quoted in the article and found it interesting that it really only references inpatient systems. Personally, I’ve found ambulatory systems to be much more annoying with alert fatigue that hospital-based CPOE systems, although more likely to allow individual providers to adjust the level of alerts they receive. I still struggle with physicians who want to turn alerts off completely, which is a bit frightening.

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This doesn’t really have anything to do with health information technology, but I found it fascinating. I’ve long been a fan of Lechuguilla Cave, located in New Mexico’s Carlsbad Caverns National Park. Researchers studying bacteria which have never come into contact with humans have identified strains which are resistant to antimicrobial agents. All were resistant to at least one antibiotic and some were resistant to at least 14. Another good reason to continue to fight antibiotic resistance, because obviously bugs are built to survive.

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I had the opportunity to hang out this week with some true in the trenches “IT guys” and was reminded what a fun bunch they can be. Most of them have accepted me into the tribe and no longer hold the fact that I’m a physician against me. Words that describe these guys and gals: brilliant, dedicated, straight shooters, funny, detail-oriented, and occasionally downright hilarious. One of them owes me, though, for almost making me spit red wine all over the place, so he’d better be on the lookout. I’m going to find a way to pay him back, mark my words. Thank you for standing guard over my systems 24/7 and for alerting me when administrators and other bean-counting individuals cause trouble. I’ve got your back. And I promise if one of you ever accidentally activates the Halon system again and shuts down the entire health system’s network, I’ll still be your friend.


Contacts

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

More news: HIStalk Practice, HIStalk Mobile.

HIStalk Interviews Steve Liu, Founder, Ingenious Med

April 18, 2012 Interviews Comments Off on HIStalk Interviews Steve Liu, Founder, Ingenious Med

Steven T. Liu MD, SFHM is founder, executive chairman, and chief medical officer of Ingenious Med of Atlanta, GA.

4-18-2012 5-11-53 PM

Give me some background about yourself and about the company.

I was an engineer first and earlier in life – electrical — and it’s just it wasn’t for me. I couldn’t see myself doing this for a long period of time. I decided at the last minute to do what I really wanted, which was become a physician.

When I got out, it was a really interesting time. In 1999, there was this new movement called hospitalist, which is what I became. I took a chance and jumped in to that. 

At the same time, I started building tools that I needed for myself to manage the hospitalist group — capture data, improve quality, and improve the practice’s performance. It was nice because that ultimately resulted in me building the company. There was an opportunity. I built some tools that were really helpful for myself and it turns out there was a market — a lot of other folks were having the same problems. That’s the inception of Ingenious Med.

At this point, we’re probably the largest inpatient revenue capture physician management solution out there, with about 14,000 users. We did the tally a couple of months ago. We did about 10 million individual encounters that we captured for the physicians and hospitals across the nation in 2011.

We’re a point-of-care solution. We’re in the physician’s hands every day on every patient. We’re able to engender correct actions in data capture and give feedback and align those physicians with the goals of their organizations, whatever those might be — cost, quality, revenue.

 

Describe the workflow of your users and how your application captures charges and documentation within that workflow.

Our bread and butter used to be hospitalists. They’re the minority of our users – it’s really inpatient physicians. The workflow is pretty similar across the board, whether you’re a cardiologist or a hospitalist or whatnot. 

Physicians round in the hospital. I measured it one day — I walk something like five to eight miles a day in a hospital when I’m rounding. They’re extremely mobile. As a result, it’s hard to always have access to a workstation. They see patients, but actual patient care time is only about 15 minutes. The rest of the time is spent thinking about patient, documenting information, and then capturing your revenue by making sure you document for compliance and quality and all those other things that your organization needs you to do.

We’re at the very front part of that revenue cycle process. There are only a few technology touch points with a physician where you can give them feedback and have them change behavior. Most of the time it’s through the EMR, but another opportunity is what we do, which is the mobile cloud space of revenue. When they finish doing everything they do with the patient, they need to capture the work that they performed. That’s what we do.

We do a whole bunch of stuff once they enter information for us. We give them a lot of feedback and education to hopefully enhance their behavior and performance. Then we take all that information and process it, give reports back to administration, to the physicians, score cards, etc. Then get it to the billing services or the back offices to be handled from their standpoint.

We’re highly adopted – we’re literally there at the point of care on every single patient of our users every day. It’s sort of an opportunity to do all this cool stuff.

Who are your competitors and what’s the alternative for physicians to improve if they aren’t using any system?

Back in ‘99, everyone was on paper. That was the best solution. Paper is probably one of the most ergonomic things out there. You can’t supplant it in many different areas, obviously, because we’re still 10 years out and we see practices still walking around with 3×5 cards and superbills. 

That’s the de novo basic situation. It has a lot benefits, but a lot of inefficiency. There’s been many studies and a lot of data on just how moving to electronic systems gets rid of all the inefficiencies of lost paper, illegible handwriting, and all that sort of stuff. 

There’s probably about two major competitors that focus on our space. They have wonderful products and we highly respect them, but it’s what you do with the charge capture. Everyone has charge capture, even 10 years ago. EMRs, HIS systems … people have it. But it’s such a critical part of a practice. If it’s not done correctly, your livelihood is very much at risk.

As a result, people started to migrate towards best-of-breed solutions rather than the de novo systems that were available, maybe even for free. That’s why people come to us.

 

It’s almost as though you’re the CPOE of physician financials. It’s easier for them to use paper, but you have to give them an incentive to go electronic.

I’ve never heard that spoken that way, but that actually is a really great way to describe what we do. That’s perfect. We’re the CPOE of financials and revenue for the physician — exactly. It’s not just capturing an E&M code and some diagnoses. It’s way more than that. That’s our core business, but there’s so much that goes on, so much that can be lost revenue-wise, and so much opportunity to do other things outside of just charge capture.

The whole industry is living towards managed care. Instead of charge capture, it’s work capture. With that information that you get right there at the point of care, you can do some really, really great stuff that impacts things that are non-financial or indirectly financial, like quality and core measures and all the things that are now becoming the new way to have a healthy revenue in your practice.

 

So your goal is not to be a documentation system, but to capture information that isn’t available in other systems as a by-product of capturing charges?

We think of ourselves as a complementary. One of our major missions in whatever we design in a roadmap is to always complement the EMR, not to go head to head with the big functionality that they do. 

One of the things we do is complement the documentation. We don’t really want to become the medical record. It’s really not our role. But existing systems may not do things as well as they could. You find that with all the requirements coming in healthcare in both financial as well as quality reform, the physician’s pen is the most powerful thing in the hospital. Everything comes out of that. As a result, you can shore up documentation. That’s how we think of our role in documentation — shoring it up.

 

Do you find it tough to fight for space on the portable devices or desktops, like what happened with the proliferation of devices and applications that demanded the attention of nurses a few years ago?

Not really. The reason why, I think, if something is pretty usable …  ergonomics and ease of use are absolutely paramount to have any sort of adaption. It’s like Hair Club for Men – I’m not only telling you to use the product, I’m a member. I use the product. That’s why I still practice. You have to be a clinician and use it in order to actually design really good stuff.

We have something that’s very embedded and keeps pace with the physicians from an electronic device – Web , PDA, or smart phones. It has to be usable, and then also useful. I think because we’ve got that combination, they do generate more revenue, capture more value, showcase more quality, or improve their care with our functionality. It doesn’t feel like a hindrance. It’s looked at more as a useful tool that you use every single time you see your patient.

 

How do lay out your turf beyond just charge capture?

Only 10-15% of our solution is charge capture these days. Over the past 10 years we’ve built that and we continue to build that up, but that’s a small part of what we do.

Our most powerful points — why people often choose our platform — is not necessarily for the revenue and the charge piece, but the other tools — the physician management functionality, the reporting and ability to scorecard your physician and let you know exactly what they’re doing to manage their performance and give them feedback and really engender change. That’s one of the most powerful things that has been very successful for us. I think it’s what we do very well, if not the best way in our particular market.
That’s an area for sure that we will continue to move down.

I think some of the other areas in terms of point of care, education and feedback … even a limited focus of decision support is probably another area that we would like to establish as huge experts in.

 

Most companies have figured out an angle to ride the wave of Meaningful use, accountable care organizations, analytics, or more than one of those. Are you finding that those are good springboards for your business or are they taking people’s attention away from what you’re offering?

Meaningful Use doesn’t impact us too much. It’s not a huge focus, simply because that’s what everyone else is focusing on. That doesn’t impact us as much. 

ACOs, however, do. If in a world of managed care and ACOs, you just change the word “charge capture” to “work capture.” You still have to measure the amount of productivity that physician actually does in order to see how contracts gets renegotiated, etc. ACO is an area that has been beneficial for us. We see that as an area of opportunity as we transform our offerings to fit the coming landscape.

The other areas that we see as being directly related through the functionality that we have are value-based purchasing and quality improvement and capturing all that data. PQRS is the physician component of VBP. That’s what we do. We were one of the nation’s first PQRS registries and we have 100% success with that. We would like to take our knowledge there and move it towards VBP.

 

You won a physician entrepreneur award in the fall and almost immediately brought some new folks into the company at the executive level. What’s the long-term strategy for the company?

You’ve probably heard this a million times .. an entrepreneur five years ago, eight years ago who said, “We’re at the hockey stick inflection point where we’re really about to grow.” You check in four years later they just haven’t done it for whatever reasons. I’ve been saying that for a long time. 

What happens is — especially with a growing company — if you’re smart, you reinvest and reinvest and reinvest in the company. That’s what we have been doing. We really have hit that inflection point. We’re on the other side. As a result, you have to go through big organizational change.

A couple of years ago, I put in a CEO to replace my role as CEO at the company, more for personal reasons, so I could start a family. That was one of the best decisions I ever made. We were able to really, really focus on strategy for the coming change. As a result, that was the first step in maturing the company — putting in the CFO and our CTO and really capable management. The new stage is large enterprise healthcare organizations — being able to support their needs. And not even just with those clients, but also to build the company out for what needs to be done 2-3 years out for the coming change.

Any final thoughts?

I’m humbled and thankful to be where we are right now in healthcare. It’s a pretty exciting time. It’s a time that forces folks to think about the future and innovate and grow. There’s a lot of opportunity. I think it’s a neat place to be. I’m pretty thankful about that. 

With everything that’s going on, it’s nice have sites like your own to have a touch point for what’s going on in the industry. Believe it or not, you really do educate myself and a lot of the healthcare folks out there about what’s going on in the industry and trends and all of that. 

I’m thankful just for having a role and being able to be successful in providing really, really neat, great functionality to the hospitals and providers out there that hopefully improves our lives. It’s part of our mission statement. It’s nice to be able to live on that.

Comments Off on HIStalk Interviews Steve Liu, Founder, Ingenious Med

News 4/18/12

April 17, 2012 News 10 Comments

Top News

4-17-2012 8-52-02 PM

Verizon Chairman and CEO Lowell McAdam, addressing the World Health Care Congress on Tuesday, outlines the challenges to US healthcare delivery and announces a relationship with NantWorks to create the Cancer Knowledge Action Network that will give physicians access to best practice treatment protocols. NantWorks is owned by billionaire Patrick Soon-Shiong. Excerpts from the transcript:

It’s now been almost three years since Congress authorized $27 B to fund the transition of electronic medical records, and in that time we’ve seen a tremendous amount of innovation across the whole health care marketplace. The CDC reports that 57 percent of America’s physicians have now adopted electronic medical records … Yet for all of this innovation, technology has yet to truly transform health care as it has other sectors of the economy. Doctors report that their productivity actually goes down, not up, when technology is introduced because of incompatible systems and frustrating interfaces. The amount of digitized medical information is rising exponentially, but systems still can’t talk to each other easily, in part because of the licensing and security issues unique to this industry … And maybe the most surprising thing in an anywhere-anytime age is that patients don’t have the seamless connection to their health care systems that technology affords them in every other facet of their lives … In order to realize the full disruptive potential of technology, we need holistic approaches to solve these fundamental issues and deliver next-generation health-care experiences to consumers … The World Health Organization has just published a report on the fantastic potential for using these wireless networks to deliver m- and e-health care solutions to the world’s population. They note that, while there are lots of small-scale m-health experiments going on, no one has really solved the security, interoperability and standardization problems that are getting in the way of delivering these vital services in a system-wide, worldwide basis in a secure and interconnected way. At Verizon we think it’s time to scale up.


Reader Comments

4-17-2012 8-28-28 PM

From Beth: “Re: AHIMA ICD-10 Summit. Pat Brooks, a senior technical advisor with AHIMA, just finished presenting. All indications is that 10/1/14 is go for ICD-10 implementation. Most important so far: CMS will continue the partial freeze on updating ICD-9 and ICD-10 codes until one year after ICD-10 implementation. They’ll go back to regular, annual code updates on 10/1/15.” More details on the partial code freeze here.

4-17-2012 8-31-07 PM

From Kevin: “Re: HIPAA fine. I found this blatant disregard for privacy shocking, but then I thought of all the other minor displays I’ve seen that are HIPAA violations.” Phoenix Cardiac Surgery (AZ) pays $100,000 to settle an Office for Civil Rights HIPAA investigation. The practice was posting its appointments publicly on an Internet-based calendar.

From Aspiring Philosopher: “Re KLAS and Epic. I notice a lot of, ‘they are the best of a bad lot’ commentary. That proposes an unspoken implication that paper records are superior and the inefficiencies of paper record keeping of today can be overlooked and are preferred over new technologies that are intended to improve safety and communication across practitioners. If the most money is spent developing the idealized products and we cannot get something better than ‘bad’ I don’t know where that will ultimately leave us. Thoughts?” The most important point: the naysayers aren’t the people using these systems and, in fact, usually aren’t providers at all, just preachy sideline watchers. That would be like not buying a car because a handful of people who don’t own one keep harping about how inferior they are to walking. If the feeling was widespread, you would see providers going back to paper in droves and that is just not happening – that’s the strongest of rebuttals to the “paper is better” argument. I even take KLAS reports with a big grain of salt because you just don’t know if their interviews with a particular provider really reflect the big-picture attitude there about a product. Taking the MBA viewpoint, vendors will match their effort vs. reward curves, and if customers keep buying (or keep paying maintenance fees), you’ll never see products get a lot better — think Detroit rustbuckets pre-Japanese imports. Also, much of what is labeled as product failure is user failure – providers who don’t really want to standardize or change or don’t have the skill to manage the process well – non-IT precedents are ample. The bottom line: there are only a dozen or so full-line hospital system vendors out there and all have successful and unsuccessful users, which indicates that there’s more to the equation than just which product is “better.” I’ve advocated in the past that user organizations should undergo the same subjective assessment before being allowed to implement patient-impacting technologies such as CPOE.

From Portnoy: “Re: Epic. They are working with the open source GT.M database to allow them to offer a free alternative to the expensive Cache’ so that smaller hospitals can afford to implement Epic.” Unverified, but it makes sense. Everybody (including me) obsesses with Epic’s success and Judy’s net worth, but it of all the money that has been made from companies with roots going back to Meditech in the 1960s, InterSystems may be on the leaderboard. Every time Epic makes another big sale, InterSystems sells a ton of per-user Cache’ licenses and collects yearly maintenance fees on every one of them forever. My information is dated, but when I last bought them for my hospital employer, seats were $1,000, as I recall, and the maintenance percentage was pretty steep.

From EHR Warrior: “Re: [vendor name omitted]. The certified EMR is next to dead. You talked to them awhile back and they just BS’ed you. Now they have sold off their IP to a mail drop in Texas. Nothing wrong about failure, but to stiff employees, creditors, and users with lies is hopefully unacceptable, even in this climate.” I’m leaving this as unverified for now since I haven’t been able to confirm. If anyone recognizes the company being described and has verifiable information, let me know.


HIStalk Announcements and Requests

inga_small Last week I mentioned visiting the doctor and being geeked with my brush with technology. Alas, when I went for a follow-up appointment yesterday, my physician said she needed to fax my records over to a specialist. I had a momentary flashback to my neon yellow track suit and Jennifer Anniston haircut.

I ran an unverified rumor from Senor Ortega on Monday about a company he claims has ceased operations. I declined to name the subject of the rumor until I gave them a chance to respond to my inquiry. I haven’t heard anything back from Allocade, so the rumor is still unverified. That’s all I know. If the company wants to provide a response, I’ll run it.


Acquisitions, Funding, Business, and Stock

4-17-2012 8-57-01 PM

Humedica raises $10 million in a new round of funding, bringing its total VC investment to $63 million.

4-17-2012 8-57-38 PM

Telemedicine technology provider REACH Health secures $4 million in Series B funding, led by Council Capital, BIP Opportunities Fund LP, and C&B Capital.

4-17-2012 9-05-33 PM

Healthcare robot maker Aethon gets an investment from Mitsui USA as part of its $7.1 million latest funding round.

4-17-2012 8-55-33 PM

ACO and health plan software vendor Lumeris will build a software engineering and innovation center in Austin, TX, announcing plans to immediately hire 100 technical workers.

4-17-2012 7-30-52 PM

Healthcare Growth Partners releases its quarterly M&A report. It says that there are a lot of companies out there acquiring based on what seems to be long-overdue healthcare change, but they should be cautious because a lot of moving parts are involved (government and provider financial challenges, for example.) Most of the acquisitions are going for 1-3 times revenue, but those involving promising technologies are at 3-5 times revenue, while the big-spending outsiders who want to jump into healthcare IT with both feet are paying even more than five times revenue. I always enjoy reading these reports since they are really like a thoroughly research business recap that puts everything in perspective.

3M’s venture capital arm invests in Zephyr Technology, which makes real-time fabric-based physiological monitoring devices used for telehealth, on the battlefield, and in sports.

Sales

inga_small The board of directors of 37-bed Palm Drive Hospital (CA) will vote on the purchase new EMR and financial system within the next month. The hospital was set to approve a $3.8 million McKesson solution last month, but deferred the vote to determine if McKesson could interface its financial product with a clinical-only system designed by one of the hospital’s physicians. I admit it: I felt genuine pain for the McKesson rep who was thrown this last minute curve ball.

The Air Force awards LongView CIO Group a five-year, $985 million contract to provide management and professional support services to the Air Force Medical Service.

The urgent care franchise Doctors Express selects DocuTAP’s EMR and PM software for all its new urgent care centers and most of its existing facilities.


People

4-17-2012 7-39-52 PM 4-17-2012 7-41-11 PM

AsquareM Healthcare Consulting co-founders and managing partners Timothy Ogonoski and Victor Arnold have joined Huron Healthcare as managing directors.

4-17-2012 8-25-14 PM

Mental health research and technology non-profit Centerstone Research Institute promotes COO Tom Doub PhD to CEO.

4-17-2012 8-22-22 PM

Healthcare software usability firm PointClear names Justin Neece (above) as VP of corporate development and Jerry Hill as director of operations, technology practice.

4-17-2012 9-10-51 PM

Tom Stampiglia, formerly CEO of Medical Present Value, is named CEO of revenue cycle vendor Origin Healthcare Solutions.


Announcements and Implementations

Dell announces that its Clinical Service Desk is working with Mount Sinai Hospital (NY) to implement Epic.

Datalink deploys a $3 million unified virtual data center infrastructure for Cook County Health and Hospital Systems (IL) and two dozen of its facilities.

The American College of Surgeons and the CDC collaborate to use standardized quality measures and HIT resources to track, report, and prevent surgical site infections and other adverse outcomes.

4-17-2012 9-46-47 PM

North Hills Hospital (TX) implements VeinViewer, a computer-powered, hemoglobin-sensing instrument that projects the patient’s vein images on their skin, giving nurses a high probability of starting an IV on the first stick. It’s apparently been around for some time.


Innovation and Research

4-17-2012 9-26-25 PM

One of the winners of Penn’s Wharton Venture Award is 1Docway, an online doctor’s office in which patients can schedule appointments and connect to secure video chat with their physician.

4-17-2012 9-31-22 PM

Express Scripts is implementing ScreenRx, predictive software it developed that uses 400 factors to identify patients most likely to skip prescription refills so they can be contacted in advance. That must be an odd conversation to have.


Other

From KLAS: urgent care organizations are searching for EMRs to better manage their growth. Technologies under consideration includes ambulatory EMRs, ED solutions, and best-of-breed urgent care EMRs.

Memorial Healthcare System (FL) fires two employees who are suspected of accessing the names, dates of birth, and Social Security numbers of 9,500 patients with the intention of filing fraudulent tax returns.

Because it’s tax day, it seems appropriate to mention the thief who stole the identities of 56 patients at the Long Island Head Injury Association. The former manager used the personal information to file false tax returns and pocket the refunds.

4-17-2012 9-21-02 PM

A Mayo Clinic doctor develops a real-time ED dashboard that he says cuts patient ED stays by 30-60 minutes. A Mayo spokesperson says that on one occasion, it warned physicians that the patient they were discharging was having a heart attack. A consulting firm has licensed it to use with Microsoft Amalga.

4-17-2012 6-27-48 PM

inga_small Where was this service post-HIStalkapalooza? An enterprising Las Vegas anesthesiologist launches Hangover Heaven, a converted 45-foot tour bus that serves up a hangover cure called “Salvation.” For $200, patients can hop on the bus and be infused with two bags of saline mixed with vitamins, ketorolac (an anti-inflammatory), and Zofran (for nausea.) I think even Mr. H would allow him himself to be over-served so he could be treated by the medical assistant “wearing a white, sexy nurse costume with white fishnet stockings and white knee-high boots.”

Weird News Andy likes this story, in which a surgeon with a MIT engineering degree restores a woman’s ability to speak using concepts he learned from studying jet engines. The woman’s vocal cords were destroyed 35 years ago in a car accident, after which she noticed when calling her parents for help that, “I sounded like Linda Blair in The Exorcist.” The engineer-surgeon rebuilt her larynx using muscle from other parts of her body, allowing her to speak. She concludes, “My husband probably thought he had it made … a woman who couldn’t talk.”

Strange: a 52-year-old UC Irvine Medical school physician and professor sues Johnny Depp, claiming that his bodyguards forcefully took her iPhone from her and then had her handcuffed by security at an Iggy and the Stooges concert as she took her assigned seat in the VIP area where Depp was sitting. She says she suffered extensive injuries that caused pain, insomnia, numbness, depression, insomnia, post-traumatic stress disorder, nightmares, and phobias that have left her unable to work.

Odd lawsuit: a 28-year-old South Dakota prisoner sues the hospital that circumcised him at birth, saying he just realized that he’s had the procedure. He wants $1,000 and surgery to have his foreskin put back.


Sponsor Updates

4-17-2012 10-12-13 PM

 

  • Awarepoint CEO Jay Deady is featured in a podcast discussing hospitals’ substantial gains using RTLS solutions.
  • Thomson Reuters releases its 100 Top Hospitals study.
  • Hayes Management Consulting announces that its revenue cycle business has tripled from March 2011 to March 2012.
  • Greenway Medical provides an update on the 2012 PQRS incentive pathways and qualifications.
  • eClinicalWorks recognizes several customers for achieving NCQA Level 3 Physician Practice Connections PCMH status.
  • Santa Rosa Consulting offers an explanation of the the CMS readmission reduction program timeline and penalties.
  • AT&T mHealth introduces the WellDoc DiabetesManager application, which aids in disease management and cost control. 
  • MaxIT Healthcare ranks No. 5 in Indy’s Top Workplaces for 2012.
  • CynergisTek CEO Mac McMillan discusses security and privacy solutions at several upcoming April events.

Contacts

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

More news: HIStalk Practice, HIStalk Mobile.

Curbside Consult with Dr. Jayne 4/16/12

April 16, 2012 Dr. Jayne 3 Comments

I cover the emergency departments of different hospitals. One of my facilities (part of a large health system where, thankfully, I have no responsibility for any of the IT decisions) is about to upgrade its ED information system.

Working there has driven me to near madness. The medication prescribing system is atrocious. It not only contains “do not use” abbreviations, but also doesn’t allow you to prescribe any medications that are not pre-built in the hospital-centric medication database.

Being spoiled by other vendors that use high-quality third-party medication content, it’s definitely a challenge. There’s no ability to free text notes to the pharmacist and no e-prescribing either. Half the time I end up taking the computer-printed prescription form and handwriting comments on it to avoid pharmacy callbacks (most of the patients I see have no insurance and pharmacies are constantly calling to substitute things due to cost — I like to give the pharmacists flexibility to substitute when needed.)

Because I’m a part-timer, I rarely work with the same nursing staff repeatedly. While challenging, it’s rewarding because I’m guaranteed to learn something new on every shift.

Last night, Nurse Tina introduced me to what I can only categorize as forbidden fruit. The drawer under the counter where the physician’s PC sits contains more than just pencils and paper clips — there are (gasp) pads of prescription blanks! Yes, Virginia, there IS a Santa Claus and he just brought me something good. Better than dark chocolate.

I gleefully spent the rest of the shift hand writing prescriptions whenever I ran into an issue with the software, something I hadn’t done in years. Because of the limitations of the prescribing system, not only was hand writing the prescriptions faster, it was better for the patients. I could write exactly what I wanted rather than trying to hijack a poorly built “default” medication selection. I had to find a suitable notes field in the system so that my handwritten scripts were documented and I did sacrifice allergy and interaction checking, so it wasn’t a perfect solution.

The system is due for a much-needed upgrade, which has been postponed twice previously. I hope this time it actually occurs. I will attend training in a couple of weeks and I hope there are good things in store.

I’m a little concerned, however, because I learned from Tina that the non-physician staff haven’t received any notification of the upgrade, nor have they been scheduled for training. That should make things interesting.

Because I’m just a hired gun providing clinical coverage, no one gives a hoot about my IT opinion. That’s frustrating,  but refreshing. It allows me to see the systems as the rest of the physicians do. I’m just  someone just trying to do her job and care for patients. This gives me greater perspective on how my own systems should operate and whether our communication plans, training, and upgrade preparations are adequate.

I’ll know more in a couple of weeks about whether we’ll really have improvements. Hopefully provider-specific medication favorites are coming, or maybe even an actual comprehensive medication database. I’m crossing my fingers and will keep you posted.

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E-mail Dr. Jayne.

Readers Write 4/16/12

April 16, 2012 Readers Write Comments Off on Readers Write 4/16/12

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!


Making More Meaningful Use of Data Through Device Integration
By Stuart Long

4-16-2012 8-06-17 PM

Far and away, the main theme of Meaningful Use is an increased focus on making health information exchange not simply a capability, but a reality. As providers seek reimbursement for technology implementations designed to do just this, they need to take a step back to understand what is necessary to go beyond incremental improvements in order to see the larger picture – which means going further than Stage 2 to Stage 3 and beyond.

There has been recent discussion around the importance of medical device integration (MDI) as a necessary component on the path toward achieving health IT (HIT) initiatives such as Meaningful Use, HIE, and ACOs, among others. Healthcare providers need to understand the impact medical device integration can have across the entire hospital enterprise – “the big picture.”

While not addressed in Stage 2 (which takes effect in 2014), medical device interoperability is a stated 2015 objective. Stage 3 criteria are obviously yet to be detailed and finalized, but one of the criteria is for medical devices to be interoperable with EMRs and clinical information systems.

The theory of medical devices being interoperable is a good one. However, the chance of this actually being achieved across all device manufacturers is not realistic under the stated timeframe. Only a small fraction of devices today can send interoperable HL7 data. This means that many of the devices already installed within the hospital are not interoperable. Therefore, hospitals may be required to purchase new devices to meet the objective. With already strained budgets and resources, many hospitals would not be able to do so.

The most realistic means to meet the interoperability objective now and in the future is by implementing a vendor-neutral connectivity solution that would convert all data from all connected devices to HL7 so multiple people receiving information system(s) can accept it. Such a solution would enable interoperability, allow a hospital to use the equipment they have in place today, and minimize the points of integration for easier management, flexibility, and scalability – key ingredients to deriving real value out of required technologies like EMRs, CPOE and others.

Beyond Meaningful Use, the question is: how can hospitals fully leverage MDI to deliver the even greater benefit of transforming patient safety and outcomes? Imagine the ability to take collected data and compare, contrast, and analyze it from multiple sources, and then deliver it back to caregivers in a meaningful way. Imagine the ability to effectively manage smart pump connectivity and bi-directional communication. These are all possible through a middleware, vendor-neutral device integration solution.

However, let’s be realistic about the timeframe to make such possibilities a reality. For true end-to-end and bi-directional communication to become a reality, there are multiple factors that will have to come in to play. Multiple vendors with varying degrees of responsibility and intellectual property will need to communicate and operate with one another in order to make the data collected meaningful and to ensure that such data is presented back to the caregiver or other healthcare professionals in a meaningful way.

While this will take time, there really is only one way to facilitate this exchange of data – through a middleware provider who has established relationships with all the vendors in the mix: device manufacturers, information system providers, system integrators, and predictive outcome vendors. Having middleware that is vendor neutral gives hospitals the advantage of being able to bridge the gap between these worlds.

The point is, device integration is evolving. It is going beyond the simple connection of devices to systems. The next evolution will be using the data collected so it can be compared, analyzed, and delivered back to the healthcare provider and healthcare executives in ways that will truly transform patient care and outcomes. While it will take time, it isn’t a matter of whether it can be done — just when it will be done.

The beauty is hospitals can realize all the many benefits of device integration today (improved patient care, reduced errors, improved decision making, and even Meaningful Use) and position themselves to then realize the many benefits coming in the future. It’s a win/win, really, because device integration aligns with the ever-growing strategic approach to technology investments and implementations — to increase efficiencies and improve patient care.

Meaningful Use requirements will come and go, but hospitals will still remain. Decisions and investments made now will have a long and lasting impact on the future of healthcare. The best approach is to create an agile, scalable healthcare environment that can adapt to the changing needs of patients for years to come. Medical device integration is one technology that aligns with all of these objectives and more.

Stuart Long is president, North America of Capsule Tech, Inc. of Andover, MA.


Clinical Intelligence to Improve Quality and Reduce Costs
By Michael Weintraub

4-16-2012 7-54-00 PM

The business model for healthcare is changing very quickly and most providers do not have the information resources to support value and risk-based accountable care. What is needed now is longitudinal information that is patient / population centric, across the continuum of care, outcome and health status oriented. It must support performance improvement and cost management, particularly for disease states such as congestive heart failure, hypertension, diabetes, asthma and others, where better management impacts health status and reduces total costs.

Accountable care requires clinical intelligence – information resources and analytical tools – to improve care to populations, over time and across the care continuum. Analytics is a tool for extracting useful properties from data, but intelligence is about making sense of the data and figuring out what to do about the findings.

Quality improvement in recent decades has been aligned with a volume driven fee for service business model. Claims based data analytics and process measures were adequate, though their value in improving care has been disappointing despite the commitment and best efforts of so many. As Chassin and Loeb conclude, “Health care quality and safety today are best characterized as showing pockets of excellence on specific measures or in particular services at individual health care facilities.” 1

As we move toward a value-based system with accountability over time, the focus of analytics is shifting as well. Historically the field of “analytics” only encompassed scorecards focused on traditional quality measures (e.g. aspirin on arrival for MI patients). But as the business model of health care shifts from fee-for-service to fee-for-value, organizations have also had to shift their analytic focus from “service” in the form of traditional process-based measures to “value” in the form of population health. This shift has driven expanded requirements for more robust clinical intelligence and predictive analytics to measure, understand and drive improved clinical performance tied directly to the bottom line.

Clinical data is the anchor for clinical intelligence and vanguard IDNs, hospitals, and medical groups are using clinical intelligence (CI) solutions that unlock the value of digital clinical data. Adoption of HIT is an enabling but not sufficient prerequisite for CI. Data warehousing and registries may also be enabling, but they are not CI. CI requires four advanced capabilities: data management, data quality, analytics, and shared learning.

 

Data Management

Even organizations with the most comprehensive EHRs find their data difficult to access and extract for analysis. Data formats and definitions are not standardized across IT applications or across entities even in the same enterprise. Extracting, organizing, and normalizing clinical, financial, and operational data from disparate systems and across the care continuum — inpatient and ambulatory — is key to unlocking intelligence in the data. Data management functions can be performed behind the scenes on a near real-time basis avoiding costly interfaces. They should tap valuable unstructured data using natural language processing to enhance the value of the extracted and normalized database for population management.

Data Quality Services

One of the persistent concerns of those who use data or are the subject of that data is concern about its accuracy and validity. These concerns are well grounded. The explosive growth of digital information with poor data governance has led to a state of disorder that has done little to improve trust and willingness to act on data.

This problem is compounded exponentially when trying to mine clinical data from EMRs. Unlike the well-understood structures and nomenclatures that support ICD, DRG, and CPT coding, clinical data are unstructured and unlimited in terms of their heterogeneity. CI solutions solve this problem by performing forensics that clean, validate, and map the data. These data quality processes provide insight into the areas ripe for data quality improvement in EHR and other data sources and enables monitoring data quality over time. The result of data management and data quality is a continuously refreshed database ready for use.

Analytic Technologies

CI employs analytic tools that are clinically and statistically rigorous and transparent so it is easy to access and understand the underlying data. Innovations in advanced data visualization and analysis guidance such as report libraries support a broad range of uses from clinical performance profiling to dashboards and analyses of at risk populations. For at risk patients and populations — for example, CHF patients — CI uses predictive analytics to identify where intervention may prevent hospitalization. Valid comparative data for benchmark analyses is an essential component of CI and a prerequisite for sustainable performance improvement. Smart analytic tools also help support employees who are learning to work with expanded data sets and new tools.

Shared Learning Resources

Over and over, it has been shown that quality and performance improvement benefits from collaborative learning. Using normalized and comparative data, CI leaders engage with one another through learning communities, such as those being convened through the American Medical Group Association (AMGA). With CI, the clinical comparative data and analytics are the glue for the community of stakeholders actively engaged in learning from one another.

Leading healthcare organizations preparing for value and risk-based accountable care understand they must move beyond limited purpose process measures and claims data to CI. They are leveraging their investments in HIT and unlocking the power of clinical data for population management and health system improvement.

[1] Chassin, M. and Loeb, J. “The Ongoing Quality Improvement Journey: Next Stop, High Reliability.” Health Affairs, 30, no.4 (2011): 559-568

Michael Weintraub is president and CEO of Humedica of Boston, MA.


How are you Managing your Revenue Cycle?
By John O’Donnell

4-16-2012 8-01-11 PM

The complexity of managing the revenue cycle has never been greater than in today’s healthcare environment. From the economic impact on an organization’s bottom line to the continued advancement of healthcare reform, the need to stay three steps ahead has never been more important for your organization’s financial health.

Staying ahead means knowing your strengths and weaknesses. Do you have the right talent? Do you know what the market conditions are doing to your revenue cycle? How do you approach declining reimbursements without impacting quality or strategic initiatives? These are not easy questions to answer.

Knowing what your organization does well and what it does not do well is one way to determine how to best approach your revenue cycle.

Take Business Intelligence (BI), for instance. It’s not just a term for reporting. It applies to the overall approach to your revenue cycle. BI can help you evaluate areas with the greatest impact to your cash—like denials management and follow-up. As you examine these areas, BI will begin to display a picture with areas of concern.

You may come to realize that outsourcing portions of your revenue cycle might be an option. For example, converting to a new billing system is going to impact A/R and denials no matter how good your organization. You cannot install and manage the old A/R at the same time.

Leaders need to look at what makes good business sense for the organization — especially regarding denials management — and ultimately, what’s good for the patient. Can you financially support growth if your cash flow is being impacted?

Cost pressures from staffing and IT costs are all having dramatic effects on the providers, not to mention ICD-10. The implications of ICD-10 on the billing process itself are staggering with regard to workflow, systems, and reimbursement. Documenting the clinical process correctly is critical.

Physician alignment is one area that will be crucial in transforming your revenue cycle. Whether inpatient or outpatient, the revenue cycle will impact physician compensation. This means you have to include physicians in any associated initiatives. Bring them into discussions about charge capture. Educate them on the impact on denials and eligibility. Have the physician sit down next to you as you both look at options in managing the revenue cycle.

The management of the physician practice does directly impact all aspects of your revenue cycle, and ultimately your cash flow.

The old manual models are a thing of the past. Technology is woven into our daily lives and needs to be integrated into the revenue cycle. This does not mean a minimal touch approach of writing off denials in advance. It means using people and technology to limit the denials ahead of time.

Accountability will force providers and the business office to work side-by-side to maximize reimbursements, especially as reform advances. Healthcare reform / accountable care organizations — it’s all here and it’s still advancing, whether you’re good, bad, or indifferent about it.

Today’s current economic factors are in some cases crippling providers. Throw in reform and without question a transformation of the current model is needed. Changing from fee-for-service to accountability is going to impact cash flow.

I believe this transformation is forcing mergers and acquisitions across the spectrum, which will impact both your inpatient and outpatient revenue cycles.

For example, if your hospital adds new physician groups to the mix, great. That will feed the inpatient cycle. But what does that mean to your existing revenue cycle? Does that mean a best-of-breed or an integrated system approach? And how do you scale the operations to support growth? You have to look at different options.

We’ve all heard the real estate mantra, “location, location, location.” Well, with your revenue cycle it’s all about cash, cash, cash. Without it, buildings don’t get built, physicians don’t get paid, and the patient is left looking for care elsewhere.

In the end, it’s about knowing how to scale the operations to meet the needs of the organization to support financial stability and growth. It’s also about using BI to monitor performance. None of this means your cash has to be impacted. You just have to know and understand your options.

John O’Donnell is president and CEO of SPi Healthcare of Tinley Park, IL.

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