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Healthcare Giant Faces IT Nightmare

Joan writes "Kaiser Permanente, the largest HMO in the U.S., has spent about $4 billion on an unreliable electronic medical record system that is impacting patient care, according to a 722-page internal report revealed by Computerworld. The CIO resigned after the news came out, and CEO George Halvorson is telling the media that the goal is an alarmingly low 99.5% uptime and that all the problems are really just power outages. Yesterday, Slashdot covered a story about the possibility that the NHS in the UK could now claim the 'biggest IT disaster' prize, but Americans, fear not: so far, the Brits are running a much more efficient failure at $24,000 per physician per year, while America's KP is spending $76,920 per physician, per year on its failing project."

16 of 342 comments (clear)

  1. maybe they can merge by yagu · · Score: 4, Funny

    Maybe they can merge the two projects (the Britain and the KP project) for greater efficiencies.

    1. Re:maybe they can merge by MyLongNickName · · Score: 4, Insightful

      We have an opening for Dean of our MBA department. You are a shoo in. When can you start?

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    2. Re:maybe they can merge by Anonymous Coward · · Score: 5, Funny

      Hold on a second!
      He didn't mention the synergies that merging the two products would bring to the core competenancies of both organizations.

      Now that I have, can I get the job?

  2. well this obviously can't be right by bunions · · Score: 4, Funny

    The free market is more efficient than some socialist government project. There must be some error in the article.

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    1. Re:well this obviously can't be right by networkBoy · · Score: 4, Insightful

      The term clusterfuck comes to mind...
      -nB

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    2. Re:well this obviously can't be right by Brandybuck · · Score: 4, Insightful

      The first word in "free market" is "free". That's free as in unhindered, unrestricted, unencumbered, etc. The US medical industry is not a free market, as there is a bewildering array of non-market forces hindering, restricting and encumbering it.

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    3. Re:well this obviously can't be right by bunions · · Score: 5, Funny

      In a truly free market, incompetent doctors would put themselves out of business because all their patients would be dead - problem solved!

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  3. Why the hell do they use Citrix? by jmyers · · Score: 4, Insightful

    I have used Citrix and it solved some problems for us, but why the shell would you use Citrix for a new application developed from scratch? To me Citrix is a system to run legacy applications. Any time in the last 10 years I would think you would choose a platform that does not require a hack (multi user ms windows) to run.

    "We're the largest Citrix deployment in the world," Deal said. "We're using it in a way that's quite different from the way most organizations are using it. A lot of users use it to allow remote users to connect to the network. But we actually use it from inside the network. For every user who connects to HealthConnect, they connect via Citrix, and we're running into monumental problems in scaling the Citrix servers."

  4. Re:Woo-Hoo! by bfields · · Score: 4, Insightful
    Medical insurance, unless you have some severe, traumatic injury, is a worthless investment.

    That's the way medical insurance is *designed* to work. It's a net loss as long as all we need is routine stuff (like wisdom tooth extractions). And we accept that in the understanding that in the case of a severe, traumatic injury--something we just wouldn't be able to pay for *at all* otherwise--we'll be covered.

  5. Re:Go USA! by bberens · · Score: 4, Funny

    US health service is second only to our education!

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  6. Funny thing. by WindBourne · · Score: 4, Informative

    About 15 years ago, I worked in Denver for IBM watson lab on the KP system. It was actually a OS2 desktop with AIX backend and had been decent system over the last decade. Then talking to ppl at KP, they told me that higher ups wanted a windows system. Well, I guess they got exactly what they wanted.

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  7. Re:Probably not. by John+Newman · · Score: 5, Informative
    I doubt it. I bet there are more bankruptcies as a result of credit card overextension, or poorly managed home loans, than as a result of medical expenses.
    A recent study that made some ripples in the media indeed found that half of all bankruptcies were due to medical bills. Most frighteningly, they found that 75% of families forced to declare bankrupcty for medical bills had health insurance.
  8. Re:Woo-Hoo! by John+Newman · · Score: 4, Insightful
    That's the way medical insurance is *designed* to work. It's a net loss as long as all we need is routine stuff (like wisdom tooth extractions). And we accept that in the understanding that in the case of a severe, traumatic injury--something we just wouldn't be able to pay for *at all* otherwise--we'll be covered.
    It may work that way for young, healthy, childless people, but the wheels fall off when you think about everyone else. Everyone will require significant medical care during their life. If not due to injury, then most certainly due to age or for routine care of children. The very idea of "medical insurance" starts to sound like an oxymoron when you realize that virtually every human being is guaranteed to have some sort of chronic and treatable - and therefore expensive - medical condition when they get older (and "older" may well mean 40s, not 80s). "Insurance" here acts less like true insurance - where the odds of having to redeem a claim are very low - and more like an investment plan where the bank can choose to seize your investment at any moment and pawn your needs off on the government instead.
  9. HIPAA may be the answer by peacefinder · · Score: 4, Informative

    Citrix offers one huge advantage in the world of healthcare IT: When the thin client is not connected, no patient data exists on a thin client machine.

    The HIPAA Security regulations are good regs, as such things go. But one of their demands is that you know exactly which machines have Electronic Personally-identifiable Health Information (ePHI) on them. Any such data must be protected, backed up, and audited. Further, each machine containing ePHI is subject to the organization's media disposal policy.

    Now, ideally an EMR system should not leave tracks on the client machine even with its fat client. But if the EMR's fat client does leave data on the client machine, then meeting HIPAA Security requirements would be one heck of a lot easier to accomplish if all you have is thin clients. I have no idea if the EPIC client does leave data on the client computers, but if it did there would be reason to be very interested in using Citrix to keep all ePHI off of all periphrial machines.

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  10. Re:Huge Opportunity by frank_adrian314159 · · Score: 4, Interesting
    Is this problem really so hard that nobody can write the software without a major cluster-f***k?

    Oddly enough, yes.

    Health care management systems are a royal pain to build. They need to (if you want to be inclusive) do all of the following: billing, insurance submission, pharmacy and supply ordering both provider and vendor side (including inventory management), lab work integration, patient record management, facility booking, scheduling, and or interfacing with all of the above. You're doing this in a highly distributed system (both logically and physically), where fault tolerant behavior is required (and the 99.5% uptime mentioned is drastically too low). You're trying to do this while gathering inputs from hundreds or thousands of different systems, both internal and external, all of which talk different protocols using different vocabulary, all of which need to be reconciled, and all of which have their own quirks. To operate this system you have your standard IT grunt that has no more than 2 years of ITT Tech training. All of this needs to be done in a high-security environment where information is compartmentalized, both at the functional and the individual level. The users of this system range from physicians who don't know how to use a keyboard to administrators who want customized reporting and statistics out of the thing. A large subset of the users are prima donnas who *are* essential to your operation and who *will* walk if you don't satisfy their whims. Now go up another level - you also want a system that's easy to customize and extend (medical science doesn't stand still). Without a doubt, due to the fragmentation of the health care provision in our country, the range of users and functions these systems have to cover, and the extension requirements in place, these systems are some of the most complex that are constructed. K-P actually had an easier time of it, because of their vertical nature where so much of their operations are internal, but even so they needed to interface with hundreds of external contractor's systems (they contract out specialty care like heart surgery).

    So, no, it's not an easy job; no, you can't just buy one off the shelf; and, unless you want to go to a much more regimented and controlled health care system, it's not going to get any easier. There's a reason why there are hundreds of companies in this business and why multi-billion dollars worth of this type of work is being done each year.

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  11. Re:Probably not. by twotommylong · · Score: 5, Informative

    A true life story

    I have a dependant, who became afflicted with a rare conditon about a year ago, and we ran up 207,000 (and counting) of medical bills this year. Tomorrow is their last day of therapy... at which point 'we hope' we're done. Therapy costs $2000 a day.

    The day they were discharged from the hospital for the inpatient, my employer also saw fit to lay me off, with 11 weeks of severence, and, of course, no extension of company paid benefits beyond the end of the termination month. COBRA cost me 1000/month for what was in the industry know as 'high deductible health care' [basically it's medicare part d for healthcare.. with a huge 'donut hole']. My plan has a 10,000 out of pocket max, and then the insurance pays 100%

    Couple this with the getting the 'best doctors' to deal with this meant going out of network... when you go out of network, you see "oh, I'm only going to pay $10,000, as that is my Out of Pocket Max" Err, no.. see health insurance companies have this 'usual and customary' valuation of procedures, saying that if doctor charges $4500 for a MRI, and Medicare only reimburses that at $2000, well, the insurnance will only pay 100% of the '$2000', leaving the 'insured' paying the $2500 that is 'not covered'. You'll be surprised that an insurance company will pay $100 to an innetwork physician, for an office visit, but only pay $35 for an out of network physician, because medicare has deemed that 'usual and customary.'

    So the bill yesterday said, after insurance paid "their share" of all claims that I still owe 97,000 (remember that 10,000 'out of pocket Max'. This after the privilege of paying $9000 this year for insurance coverage.

    Note We have depleted 20,000 for living expenses while I was looking for a new job, and now that I have a job we have dedicated 500 a month to pay off the debt, and I am spending 2 hours a day appealing most of the 'usual and customary' valuations, which I will probably whittle off about 50K (I have no problem paying the difference between the common 'negotiated' rate with in network providers and Mayo's bill, but Medicare just doesn't cut it).

    This is not a sob story, I'm actually been in the health industry most of my adult life... but If I were 20 years younger, and all this happened, I'm certain I'd be bankrupt.