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Obama Proposes Digital Health Records

An anonymous reader writes "'President-elect Barack Obama, as part of the effort to revive the economy, has proposed a massive effort to modernize health care by making all health records standardized and electronic.' The plan includes having all conventional records converted to digital within 5 years. Independent studies are fixing this cost somewhere in the range of $75 to $100 Billion, with most of the money going to paying and training technical staff to work on the conversion. Early government estimates are showing 212,000 jobs could be created by this plan."

35 of 563 comments (clear)

  1. stupid question but..... by Shakrai · · Score: 5, Interesting

    If this can save so much money why isn't the health care industry already doing it? Are they really that stupid or are all the promises of big savings not likely to pan out?

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    1. Re:stupid question but..... by Phantom+of+the+Opera · · Score: 5, Insightful

      Good point, but the other question to ask would be who saves the money?

      Having these records would make it easier to switch providers. Without them, more tests might need to be done since "we don't have the records". Switching providers isn't in the providers' interest. Charging for lots of tests is.

    2. Re:stupid question but..... by jamie · · Score: 5, Interesting

      Standardization is one of those things that's good for everyone, but that would not be cost-effective for one player to attempt. When a bigger player (which in this case has to be the government) moves in and lays out standards for everyone to follow, everyone benefits.

      You should be asking not why the industry isn't doing it, but why the government didn't step in a long time ago, to do this and a lot more. Many doctors -- people who have invested more time in training and education than almost any other group in our society -- are spending half of their work hours on paperwork and arguing with insurance companies. The level of inefficiency and waste in American medicine borders on criminal, and it translates not just to massive deficits for taxpayers, but second-rate health care for citizens.

    3. Re:stupid question but..... by MindKata · · Score: 5, Insightful

      "why isn't the health care industry already doing it"
      Because it'll cost a fortune, and be a nightmare to implement. (Look at the mess the UK is making of their health computer system, with loads of interest groups, all pulling in different directions, pushing up the costs).

      "Early government estimates are showing 212,000 jobs could be created by this plan."
      Yeah, and how many paper pushers etc.., will it put out of work? ... While it will create jobs, it will also wipe out existing jobs. Political drones just want it to sound like its creating jobs. Plus even if its adding more jobs overall, then surely its going to end up costing more money in total to keep funding the system?

      --
      There are 10 kinds of people in the world... those who understand binary and those who don't.
    4. Re:stupid question but..... by hypnagogue · · Score: 4, Insightful

      Note the part where this will "create 212,000 jobs". It's not supposed to save money, it's supposed to spend it -- and the sugar daddy footing the bill is you.

      Regulatory boondoggles. Girls singing to ABBA albums. It's like 1979 all over again.

      --
      Liberty you never use is liberty you lose.
    5. Re:stupid question but..... by tnk1 · · Score: 5, Insightful

      Having these records would make it easier to switch providers. Without them, more tests might need to be done since "we don't have the records". Switching providers isn't in the providers' interest. Charging for lots of tests is.

      There is that possibility, but I'd be more inclined to believe inertia in record keeping is more to blame for them having different formats.

      You know that all providers are going to need to pay out cash to get new software that obeys the rules and there will also have to be a data migration effort. And you also know who that cost will be passed on to. Hint: not the providers.

      The question is: is it worth having health care customers pay for this? Will the investment be worth it? I think it might be, if it does help with the need to dispense with tests, retests, and other administrivia.

    6. Re:stupid question but..... by Shakrai · · Score: 5, Interesting

      Having these records would make it easier to switch providers

      I don't know if I buy that. It's pretty easy to get your records now. You request them, sign a disclosure and receive them in a few days. Some providers will even copy them right there for you. Perhaps going electronic will eliminate the wait time to have your chart pulled and copied but perhaps it won't. Will there be legislation in place that requires them to give you copies faster? Or will the excuse just change from "we need to photocopy your chart" to "we need to get IT to open up your records for the new provider"?

      There's also privacy issues that need to be addressed. I know people will scream 'HIPAA' at the top of their lungs but have you actually read your insurance contract lately? Yeah, law enforcement/civil parties can't generally subpoena your Doctor to get at your medical records -- but they can and do subpoena insurance companies for billing records, which tell them much the same things. Why that's allowed is beyond me but it is.

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    7. Re:stupid question but..... by lwriemen · · Score: 4, Funny

      The Government should auction off the format specification to help pay for the costs.

    8. Re:stupid question but..... by protodevilin · · Score: 5, Informative

      The idea is sound, but very difficult to properly implement. You'd think with all the benefits, healthcare providors would be clamoring to make the switch (some already have), but there are a lot of hidden problems associated with digital records.

      I'm a healthcare technician in the USAF, where the DoD has already implemented a system called AHLTA. When a patient presents for a doctor's visit, all the screening, labs, tests, orders, prescriptions, and physician's notes are entered into the system, where they can be referred to easily for future visits. No need to store thousands of paper records, or train records techs to pull them and locate the appropriate exams.

      Problems we experience: Privacy. It's difficult to ascertain just what records which type of doctor should be seeing, so right now we basically have a system where any variety of doctor or technician can see any variety of a particular patient's records (except Mental Health and STD visits, which are accessible only by password by default). This situation makes some patients rather uncomfortable.

      Data load. That's a lot of records. And it requires a lot of trained technicians to keep track of it. And it requires frequent audits to ensure the information is current, and has not been illegally accessed. And the system has to communicate and exchange information with several other (often outdated) systems.

      Server outages. When we have one, the clinic is virtually paralyzed. We can't refer to the patient's paper record for reliable case history, because the system was implemented five years ago. There won't be any recent records to refer to.

      Good Old Boys. The transition has been difficult chiefly because, let's face it: doctors just don't wanna have to go to all the trouble of learning a whole new computer system. It's easier for them to scribble some notes on a sheet of paper, and stick it away in a paper record and be done with it.

      There are clear advantages, but it just seems like we're not quite far enough along to handle such a system for just DoD personnel, let alone every single man, woman, and child in the US. A five-year plan is just not feasible from where I'm standing.

    9. Re:stupid question but..... by Anonymous Coward · · Score: 5, Insightful

      Maybe the open source community should get off their butts and help to create client software and server software that will implement this standard, and provide it free to the medical community thus lowering the cost of entry into standardized medical records and systems.

      This could be the best achievement of open source collaboration, and usher in a new era of open source projects that benefit mankind at the very basic level of existence.

    10. Re:stupid question but..... by arth1 · · Score: 4, Interesting

      There is that possibility, but I'd be more inclined to believe inertia in record keeping is more to blame for them having different formats.

      There is that possibility, but with nearly a decade behind me in the health care industry, I'd be more inclined to believe it's the Not-Invented-Here syndrome.

      Also, I'm very worried about a system like this from the user's point of view. If it breaks, the impact could be enormous. And breaking into a system becomes much more attractive when you can get everything in one place.
      And who is to say that a future government won't use the data for nefarious purposes? If the data is there, the temptation might be high. Would you trust all the possible future governments to know who has had abortions in the past, was brought to the ER for drug pumping when 12 years old, who is lactose intolerant due to distant negroid ancestors, or who has and haven't had a bris?

      There's also the problem that if a doctor enters something incorrect, imprecise or a red herring, it's going to stick there forever, and unless you demand to see your records, you may not even know about it. Speaking from experience, doctors are humans who will focus on the first interesting thing they see, and often have made up their mind based on your journal before even seeing you. Often they're right, but sometimes they're not, and when they're not, it tends to be the same patients who suffer over and over again, because the journals don't change -- they just get added to. (It could be that some doctor at one time entered 'fibromyalgia?' in a journal, and from that point on, every doctor who reads the journal will consciously or unconsciously think that any pain you report might be related to fibromyalgia. Whether or not you ever had it.)

      I'm just surprised that privacy advocates aren't all up in arms about this dangerous proposal.

    11. Re:stupid question but..... by Shakrai · · Score: 5, Insightful

      Interoperability is where the government steps in, for better or worse -- only the most ideological libertarian would deny that such a role exists.

      I'm not a libertarian and I've never denied that Government has some roles. I'm just really skeptical about UHC. Here are just some of my concerns (off the top my head):

      1) What evidence do we have that it will actually make health care more affordable? When has Government ever been able to do anything cheaply or efficiently?
      2) Will Government in health care be used as yet another excuse to expand the nanny state? Will alcohol be taxed higher because it's bad for me? McDonalds? Doritos? Will all of this enforced by my employer similar to the way the so-called War on Drugs is enforced? Stop smoking or lose your job? Lose weight or lose your job?
      3) What reason do we have to believe that our new Government overlords will be anymore benevolent than our existing insurance company overlords? I don't see how arguing with a Government bureaucrat over treatment is any preferable to arguing with a private sector bureaucrat. Who would you rather deal with: DMV or your auto-insurance company?
      4) Will there be a way for me to opt-out if I don't see the benefits in having my health record instantly accessible from anywhere in the United States?
      5) Will Government involvement in health care be used as an excuse to further erode the doctor-patient privilege? Go read the laws around credit reporting sometime -- the Government wrote in nice little exceptions for itself for all of the privacy laws related to credit reports. Will it do the same thing for medical records?

      Just are just off the top of my head. I'd have to say that #2 is probably my biggest concern. I'm sick of the nanny state and the war on vice. And I see no signs that it's going to get any better. In fact I see the exact opposite......

      --
      I want peace on earth and goodwill toward man.
      We are the United States Government! We don't do that sort of thing.
    12. Re:stupid question but..... by Another,+completely · · Score: 5, Insightful

      A standard isn't software; it's how to exchange information. That includes data formats, but also includes protocols and an awful lot of context. The standards work is a big job, and people have been working on it for years (see HL7). As eln points out below, it's boring as hell, but that doesn't make it unimportant. The industry has been in the process of moving from HL7 v.2 to v.3 for about a decade now.

      If you want to get into the software part of the solution, have a look at the OHF Project. There are others, but that's a starting place.

      I agree with tnk on the benign reason; the system as a whole will save money, but which individual players will save how much? Hospitals already spend very little on IT compared with other businesses, so spending a big whack that may end saving money for some insurance company isn't going to happen.

      You want one big reason for doing this? If it can free up nurses from doing secretarial work chasing down documents in the mail and phoning around, it just might keep enough staff at the hospitals to serve the public. The U.S. department of health and human services prepared this report on the subject. It's worth reading.

    13. Re:stupid question but..... by 99BottlesOfBeerInMyF · · Score: 4, Interesting

      Should the insurance company have a veto over the form of treatment or medication that your Doctor can proscribe? Probably not. But if you remove that veto costs will go up. It seems criminal to me that nobody is even bothering to acknowledge this.

      I think you're looking at this as though the industry where an effectively functioning, competitive free market. Do you really think costs of insurance are determined by how much it costs the insurance company plus a small profit? That would be stupid of insurance company executives when most purchasers have no choice of plans and have to go with what they are provided by their employer. It makes a lot more sense for them to provide kickbacks and large client discounts to lock in people, then use their bureaucracies to minimize payoff to people too sick and desperate to fight too hard.

      Tort reform might also be in order. Have any friends in the medical field? Ask them what they pay for malpractice insurance and if there would be better ways they could spend that money.

      Actually, this is symptom of a society with ineffective or too low of levels of socialist healthcare and disability insurance. Juries rule all the time that doctors should pay large sums to people who are sick and disabled because despite the facts of the case, they feel there is nothing else that is going to provide for the ill and disabled and they feel sorry for those people. They feel doctors can afford it and on a case by case basis, most people are in favor of society providing for the sick and disabled.

      I agree. I've just never heard of Government as a solution for inefficiency and waste.......

      This is, quite simply, the main argument I have against socialized healthcare programs, in general. On paper it saves money and benefits society in many, many ways most people never even consider. In practice, in most places around the world, it works better. The only real question is our government one of the worst and least efficient at performing tasks like these and is that likely to continue? Our government has already managed some of the worst implementations of social constructs around the world. Currently our healthcare system is one of them, but there are may more. Heck, look at how well we managed to implement broadband internet access. We paid triple in taxes (per person) more than the Swedes, who have almost the same population density and who had a huge amount of that money embezzled in the middle of the project. They still pay significantly less every month for significantly faster connections that reach an enormously larger percentage of their population. Our current healthcare is analogous (both times we tried the capitalist route, but lobbyists undermined the decision making). On solution that has worked for other countries is eating one's own dogfood. That is, whether it is healthcare or internet access, force everyone to rely on the same system. This means the lobbyists and government officials and decision makers all have to live with whatever solution results, affecting their quality of life. I have a lot more faith in congress critters voting in my best interests when they have to use the same medical system and can't bypass it an go to a private hospital they pay for with their wealth.

      One final point I'd like to address. Many times here you mention costs, but costs are not the most important factor for economic recovery and societal benefit. Whether 10% of the money is wasted or 20% is wasted makes a lot less difference to society than you'd think. What matters more is who is paying what percentage. In our current system taxes pay some portion of healthcare for some people, but over the last 8 years the burden of the taxes have shifted more and more to people on the low end of the spectrum. As a result, wealth has been consolidating more and more at the top in fewer and fewer hands. This and no other factor, is the important one for our economy. Wasted money is mostly

  2. stepping stones to universal health care by viridari · · Score: 5, Interesting

    Getting all of the records into a standardized format is a stepping stone to universal health care. By biting it off in pieces, he's going to be able to make the apparent cost of the transition lower because much of the expensive work will have already been done by initiatives like this.

  3. exatly by JoeCommodore · · Score: 5, Insightful

    Having health records as a standard brings more transparency to the Health care industry, start with that and then soon people will want them standardized invoicing and billing etc. Obfustication seems to be a popular method to profit.

    --
    "Enjoy what you're doing! If it becomes drudgery, you're doing it wrong!" - Jim Butterfield
    1. Re:exatly by autocracy · · Score: 4, Insightful

      ANSI 835 / 837 as mandated by HIPAA. I work with those things day in and day out. They (providers and insurers) do still find interesting ways to make me go "wtf" at least twice a week, though.

      --
      SIG: HUP
    2. Re:exatly by trybywrench · · Score: 4, Insightful

      I work in the same industry. Lots and lots of our carriers refuse to provide ANSI 835 documents though. Of all our carriers about 5% actually comply and supply 835's. ( I work in pharmacy ) btw, 835's are a mess anyway. We have to write parsers almost on a carrier by carrier basis because so much of the spec is optional everyone does it in their own way. I'm sure you know my pain.

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    3. Re:exatly by timeOday · · Score: 4, Insightful
      It's not just about saving money either. People come into the emergency room and have to be treated with almost no idea of what diseases they have and prescriptions they're taking, and that is dangerous.

      That said, this is a huge plunge to take. In Britain they've been working on it for about a decade. Of course it is over time and budget by several times. From our perspective, they've spent hundreds of millions on a prototype that we should study for every insight before such a massive undertaking.

    4. Re:exatly by Moryath · · Score: 5, Insightful

      Even with "standardized" documentation, you have to fight the ridiculous rules of the noninsurance companies / death management organizations (HMO's).

      True story: a friend of mine went in for a routine breast exam. Doctor told her she needed to have test X run. The way they would do this is, first they would do Test A (which required a biopsy about the size of a pencil eraser nub). Test A always comes back inconclusive. As in, they've been sending this test off for 10 years, and every fucking time it comes back "inconclusive." BUT, and here's the stupid part, once they've done Test A then the insurance companies/HMO's will approve Test X because Test A is "inconclusive." For Test X, they'll need to take a biopsy about the size of a nickel, same depth.

      There is no way to jump straight past Test A and go to Test X; the insurance companies will disallow it on the grounds that "preliminary" work hasn't been done. So not only does her money get wasted (one copay for each procedure, plus copay for FOLLOWUP visit to get results of each procedure and approve next one, rather than just copay for one test) but a completely redundant and useless test is done, wasting the money of everyone else who's been paying into the insurance/HMO networks. Oh, and as an added bonus, she has to go through all the pain and healing process of a biopsy, not once but twice.

      I don't think "digital documentation" will help for that.

      Other things that get in the way of digital documentation, of course:
      - Originals of a lot of records (x-rays for one example) do not transfer well to digital. Heck, transferring any analog recording, visual or auditory, to digital inevitably means a loss of fidelity at some point or another. You either save a far-too-small file that someone looks at and misses detail (or dismisses an important detail as compression artifacting) later, or your file is completely freaking huge.

      - Digital copies are unusable if you lose power. The risk of data corruption is also present. Magnetic storage media has a certain lifespan before it demagnetizes. Optical media tends to die due to oxidization, either of the ink or the metal or the plastic layer (ever seen a 10-year-old CDR? Kinda frightening when the plastic is that cloudy). Physical shock can destroy both quite easily (woe to us when people need their records following a magnitude-8 shock out in Cali).

      Now, I'm not 100% against digital records, or even the idea of all (or just mostly) typed records so that we don't have to deal with my doctor's crappy handwriting (how the pharmacist ever figures out what he prescribed and in what quantity, I have no idea). But we have to deal with the realities here, and weigh the benefits of going "all-digital", and there's a definite case for keeping originals of paper records and testing results (when possible) available.

    5. Re:exatly by VoidEngineer · · Score: 4, Informative

      - Originals of a lot of records (x-rays for one example) do not transfer well to digital. Heck, transferring any analog recording, visual or auditory, to digital inevitably means a loss of fidelity at some point or another. You either save a far-too-small file that someone looks at and misses detail (or dismisses an important detail as compression artifacting) later, or your file is completely freaking huge.

      Having worked in Radiology IT, I'd point out that the human eye is actually a limiting factor in our ability to see things. So, yes, you are correct in that an analog X-Ray had more diagnostic information encoded into it than a digital one. However, the human eye can only see so much data. The human eye isn't a microscope. So you don't need to scan an image to microscopic precision. You only need to scan it to a level of precision that the human eye can't detect a difference. And it turns out that to do a scan of an X-Ray at that level of details results in a file that's approximately 10.5MB in size. It's a very well known metric, actually.

      And if you have a 600 bed hospital which sees 150,000 patients per year in the Department of Radiology, and 50% of those are X-Rays images, with 2 images (PA, Lateral) per exam, that results in, oh... about 75,000 x 0.5 x 2 x 10.5MB = 787 GB of data per year. Add some extra space for buffering, swap space, and so forth, and you're talking about a Terrabyte of data per year for the X-Rays at a large community hospital. MRI, CT, Ultrasound, Angiography, and all the rest will add more, of course.

      The hospital I used to work at stored about 2.5 terabytes of images per year.

    6. Re:exatly by Mr.+No+Skills · · Score: 4, Funny

      Add some extra space for buffering, swap space, and so forth, and you're talking about a Terrabyte of data per year for the X-Rays at a large community hospital. MRI, CT, Ultrasound, Angiography, and all the rest will add more, of course.

      The hospital I used to work at stored about 2.5 terabytes of images per year.

      Christ!!! That's almost $250 a year for storage!!!!! Or, $75,000,000,000 if you're the govment!

      --
      Sleep is for the Weak
  4. A Better Idea... by SCHecklerX · · Score: 4, Interesting

    How about doing this for my 401K? My current one through my employer is impossible to manage, and the insecurity around the thing is downright scary. My rollover IRA through Fidelity is ok, though.

    On that note, how about making it so that I can choose whoever I want to put my pre-tax money into vs. whatever firm my employer wants me to use?

    On healthcare, stop allowing the 'insurance' companies to be in charge, for one. Let me see any doctor I want, and they cover me. Enough with the in network, out of network bullshit. Don't cover routine stuff, but do cover surgeries, long-term care, therapy, etc. I don't use my car insurance for oil changes </bad car analogy>

  5. That estimate seems really high by Phoenix666 · · Score: 5, Insightful

    $100billion? There are millions of patient records, but they do not reside in millions of databases. Let's be generous and say there are thousands of databases. But most of those databases are already manned by DBAs. Some of them may not be up to the task, but most can convert their tables to the specified format if you tell them what that is.

    So it seems the task is coming up with a standard format and enforcing it. Security is another question, but again it seems a matter of mandating healthcare providers adhere to a specified standard. But hospitals and insurance companies are quite used to such bureaucracy, so it's difficult to understand where they're pulling this $100billion figure from.

    Saying they'd need to hire an entire new class of DBAs and techs to make it happen is silly, since they already exist.

    Odds are the figure was thrown against the wall by companies hoping to win a fat contract, and counting on the knowledge that politicians have no sense of what it takes to get the job done. I hope Obama's CIO has the knowledge and grit to tell them to take a hike.

    --
    Do what you can, with what you have, where you are.
  6. Re:Format by DaveV1.0 · · Score: 4, Insightful

    While your post is intended to be a dig at Microsoft, HIPAA may actually require a form of DRM.

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    There is no "-1 offended" or "-1 you don't agree with me" mod options for a reason.
  7. Doublespeak time! by CajunArson · · Score: 5, Insightful

    In case most of you had forgotten, Obama is basically copying John McCain who specifically mentioned doing this in the debates. Of course at the time McCain did it Slashdot thought it was an evil intrusion of privacy. But now that Obama wants to do the exact same thing it's an enlightened 21st century idea that only some Luddite old guy like McCain could ever oppose.

    --
    AntiFA: An abbreviation for Anti First Amendment.
  8. Hasn't this already been done? by kiick · · Score: 4, Interesting

    I'm pretty sure that health insurance companies have electronic records of all their customer's health care. Probably those records are scarily complete.

    Wouldn't it be much cheaper, and faster, to just copy the data from the insurance companies, and write a few data format conversion programs? That would get 90% of the job done. THEN you can waste $100B on the other 10%.

  9. 24% by MazzThePianoman · · Score: 5, Informative

    Almost a quarter of every dollar we spend on health care is used by administrative expenses. In Taiwan where they have digitalized medical records their overhead is only 2%. There is plenty of examples around the world to why electronic records are better economically. Also there is the benefit of less mistakes since cross referencing medications and such can be done electronically for drug interactions etc. Frontline had an excellent episode were they looked at the health care systems of several other modern democratic countries. A must watch for anybody who cares about the health care debate. http://www.pbs.org/wgbh/pages/frontline/sickaroundtheworld/

    --
    "They who can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety" Franklin
    1. Re:24% by johnnyb · · Score: 4, Insightful

      I don't think that the reason for reduced overhead should be entirely attributed to digitalized medical records. You also have to remember that one of the main problems that medical companies don't do this already is liability problems created by HIPPA. Likewise, insurance is a nightmare to work with. These will both continue to be true whether or not records are digitalized.

      One problem few people think about with regards to health care is that the U.S. is such a diverse society, you have a lot of different types of needs. In countries with a monoculture, it is much easier to have low overhead and have a one-size-fits-all way of doing things. Also, in other countries, privacy is not so much of an issue. Here, for some reason beyond my understanding, medical records have become almost the equivalent of classified documents in terms of how they are protected. This has probably cost us much more money than whether or not the records are digital.

      I think it is _possible_ we could save money with digitization, but not the amount suggested by this post. On the other hand, based on previous experience with medical IT, I think it's possible it could actually lose money in the long run, especially if "being digital" becomes more important than actually solving the communication problem.

  10. Good luck, didn't work in UK by badzilla · · Score: 5, Informative

    We have a similar "project" or rather it should be characterised as a "permanently stalled horror story." There are only 70 million or so people in the UK so nobody understood why the initial budget was in the billions. Now it's in the tens of billions and no end in sight. Google NHS IT if you really want to spoil your day.

    --
    "Don't belong. Never join. Think for yourself. Peace." V.Stone, Microsoft Corporation
  11. Other issues by PIPBoy3000 · · Score: 4, Informative

    I work for a healthcare organization that was one of the first to switch to an EMR. You make a lot of good points, and I'd like to follow up.

    In terms of privacy, we audit all access to our medical records and have a team of auditors who monitor access. I've been responsible for writing exception reports and such. It's far easier to tell who's accessing your medical records than paper copies laying around.

    Data load is a big deal. We have our main EMR and multiple data repositories where we can do reporting and other non-operational work. Lots of people support all that infrastructure. On the plus side, that infrastructure lets us do things that saves money and lives.

    Server outages have been pretty bad, but we have assorted downtime procedures and downtime systems. An example is a downtime database located in the various medical record office that are constantly updated with patient allergies.

    Our staff has gotten quite used to working with an EMR, but there are still cultural issues. For example, what a physician writes in a medical record may be visible to the patient. They have concerns about speaking plainly (e.g. describing a patient as alcoholic). At the same time, patients have a right to know how they're being treated.

    My biggest worry about the new plan to convert paper records is that there are so many EMR systems. Will they pick one of the existing vendors? Build a new one? The ideal for the patient is to have a single nation-wide EMR that they can take wherever they go. This has a huge impact on existing EMR vendors and installs, though, so I doubt people will take that approach.

  12. The system DEPENDS on administrative inefficiency by Anonymous Coward · · Score: 4, Insightful

    If we had a digital health records system that worked, the insurers would be quick to analyze those records and use the data in consumer-unfriendly ways. Since employers pay the insurers (and ultimately incur the cost of health care), they would be among the first to "score" the health cost of new job applicants. People with certain manageable conditions (eg, diabetes) would be unemployable and therefore uninsurable.

    To prevent this, we have a hodgepodge of low-tech data capture methods, supported by back-end systems from offshore outsourcers. On a good day, it works just well enough to get the bills paid.

    Making this data readily accessible would be a disaster. No matter how much privacy is built into the system, insurers and employers would require "waivers" before anyone could be insured or employed. So much for privacy.

    How much of Taiwan's 2% is related to the fact that socialized medicine does not have any concern about who pays (or how much)? A single payer would BY ITSELF eliminate much of the overhead. Not that this is the ideal solution (as it creates other problems). But if the goal is administrative efficiency, the low hanging fruit is the nitpicking of invoices, negotiation of prices, and determining "coverage".

    In the current world, we have someone who is AT BEST a non-practicing nurse who has never met the patient deciding whether or not to approve the doctor's treatment plan for that patient. All under the guise of "managed care". I'm surprised they can keep the administrative expense down to 24%.

    There are many potential solutions to the healthcare problem, but any proposal that lets the insurance and pharmaceutical industry conduct "business as usual" is not solving anything.

    Thanks Barak, but no thanks.

  13. Create 212,000 jobs? by BoberFett · · Score: 4, Insightful

    So what they're saying is that this system will require 212,000 more people to operate than the current one. I have to ask then, why they're going to develop a new system that's more inefficient than the current one? Shouldn't a new system like this actually eliminate jobs?

  14. Re:There is a pitfall though. by Anonymous Coward · · Score: 5, Interesting
    Posted anonymously for obvious reasons. I work for a small company that writes claims management and adjudication software for health insurance. Our software actually allows the provider to write their own decision engines using a special language.

    On more than one occasion, we've had client companies, or prospective clients, come to us with requests for features and functionality that would be unethical, if not illegal. You are very correct - the idealistic principle of insurance is that it is a shared risk endeavor. That has been broken down by the insurance co's to a one-sided agenda where they know they have you by the balls and can deny for any reason under the sun, including those that specifically go against the grain of insurance (i.e. if you move to a different provider who provides 'substantially materially similar' benefits, at a separate rate, there should be no waiting period - statistics and probability don't work like that).

    My wife uses chiro services. Non-insurance rate? $45. With insurance? $135. There is something very wrong with that picture, when you know that you are paying $500+ a month in health insurance, it's predominantly YOU paying that. Why not go to a HSA or FSA? Save that money, pay the cheaper rate - the only reason most people don't is for catastrophic coverage - so you'd think that catastrophic coverage only plans would be reasonably cheap, etc? No. Cheap, yes. After you pay some of the highest deductibles around (I've seen $7,500 personal, $20,000 family commonly).

    It's a racket, and though anecdotal, there's something awry when someone whose income is derived from the insurance industry is agitating for universal health care (not that it'd go away entirely, but nonetheless), because as it stands now it is such a fundamentally broken system.

  15. Re:There is a pitfall though. by plasmacutter · · Score: 4, Insightful

    Do you also think that your car insurance company should have zero access to your driving/accident record? How can you bear risk if you have no idea what that risk is?

    You DO have an idea of what risk is, as a set of proportions or probability. You can compensate for that by determining your rates according to those general models rather than excluding people from first world status.

    By the way, this is people's health, not their car.

    How'd they create it? By insulating the general public from the costs? Doesn't the general public share some blame too if that's the case?

    no, they don't. They are never told the costs, are compelled to take care of themselves, and have no bargaining or lobbying power against centralized corporate power.

    The insurance industry, however, was exposed to the costs and could easily have engaged in bargaining and lobbying to put the abuses in check.

    They still can now, but refuse to do so.

    I'd like to add to this that driving involves choices, medical conditions don't. Many chronic conditions are genetic, and completely unrelated to lifestyle.

    Kennedy, for instance, had adison's

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