Please wait while the page is being loaded Skip this advertisement >
Saturday | 22 November, 2008
CIO
A Big Pill to Swallow
Three healthcare IT experts — a former policymaker, a CIO and a doctor who is also an IT manager — discuss the painful side effects of deploying electronic health records
Allan Holmes 19 February, 2007 14:10:55

John brought up another important point: money.

Worthen: The leadership of our organization has understood that it is very hard to measure the ROI in strictly dollar terms. If you look at the better quality of care that we can practice, if you look at the better clinical outcomes and so forth, you can't necessarily translate those immediately into dollars. So they have not been very demanding compared to what they would probably want to see if we were to get a new machine of some sort.

Glaser: The advice that we would give is to plan out the nature of the mission, realizing there are limits to what you can do. Depending on your market, deploying an EHR is becoming something you have to do competitively. It is like online banking. [If you're a bank], you have to do it if you want to be around.

I think for a larger organization you can get an ROI. It takes a lot of work to get it, but you can get it. I do think there is a need for capital contributions for smaller organizations, which don't have much in operations to begin with. It's harder to get these ROIs. There are no clerks to [lay off] and not all that much process to make more efficient.

Brailer: We should bear in mind that, particularly in physicians' offices, the discussion about ROI is often moot. I say that because providers with EHRs bill markedly more. Doctors call this "better charge capture". Payers [such as Medicare and insurance companies] have a less friendly way of viewing this increased payout.

But whatever it is called, when EHRs go in, billings increase. I think doctors' groups have appropriately said that with these technologies, doctors have the ability to provide more documentation and to support and justify their work. But in the end, Medicare and other payers look at the money, and this is causing them to take a negative view of the financial promise of health information technology. In their view, these tools may or may not save money in the long term from safer care, but they are certain that they cost them a lot more in the short term.

Medicare and other payers pay for the volume of procedures doctors provide, not for quality or efficiency. Therein lies the challenge for IT. We can push IT a long distance, but the transformation will only occur when there are market fundamentals aligned toward quality.

Related Features
  • +

    Ticked Off at Tick the Box Mentality 04 February, 2008 13:01:15

    Does your executive search firm know the difference between an MIS manager and a CIO, and if it does, can it explain that difference to its corporate clients?
    Does your executive search firm know its MIS managers from its elbow? Does it even know the difference between an MIS manager and a CIO, and if it does, can it explain that difference to its corporate clients?
  • +

    How to Get Real About Strategic Planning 04 February, 2008 12:50:59

    Everyone agrees that having a strategic plan for IT is a good thing but most CIOs approach the process with fear and loathing. In fact, the majority of CIOs (and the enterprises they work for) are faking it when it comes to strategic planning. Isn't it time we all got real?
    Oh, it must be nice to be the CIO of a FedEx or a GE or a Credit Suisse. Places where IT and the business are so tightly aligned you can barely tell the two apart. Where corporate leaders understand that IT is a strategic asset and support it as such
  • +

    Strategies for Dealing With IT Complexity 24 December, 2007 10:30:47

    Every innovation, every business process improvement, comes with an IT complexity tax that must be paid by CIOs in time, money and sweat. Here are strategies to mitigate the increasing complexity of IT as it enables new business.
    Every innovation, every business process improvement, comes with an IT complexity tax that must be paid by CIOs in time, money and sweat. Here are strategies to mitigate the increasing complexity of IT as it enables new business.
  • +

    9 Paths to Higher Performance 10 December, 2007 14:09:23

    When an organization brings together talented people in a creative, collaborative environment it fosters a culture of high performance, which in turn leads to superior business results
    Like high-achieving individuals, some organizations seem to have the Midas touch. Virtually every initiative they touch earns them gold and even those that fail never seem to cost them much of anything at all
Related Stories
  • +

    Adobe launches hosted services, adds Flash to Acrobat 03 June, 2008 09:02:44

    Adobe to launch Web site offering users free hosted services for document creation, sharing and storage
    Adobe this week is set to unveil the next version of its Adobe Acrobat software, which adds support for the company's Flash multimedia technology. The company also plans to launch a new Web site offering users free hosted services for document creation, sharing and storage.
  • +

    Bill Gates: A New Approach to Capitalism in the 21st Century 28 January, 2008 07:12:19

    Transcript of Gates speech, and a Q&A at World Economic Forum in Davos, Switzerland
    As you all may know, in July I'll make a big career change. I'm not worried; I believe I'm still marketable. I'm a self-starter, I'm proficient in Microsoft Office. I guess that's it. Also I'm learning how to give money away.
Featured Whitepaper Sponsors
Market Place
 
Featured Whitepapers

Smart SOA World Tour

Discover how SOA can create smarter outcomes for your business.

Attend and learn:

  • How SOA is helping leading companies to become more agile
  • Where you should be applying SOA processes in your company
  • The top SOA implementation mistakes to avoid

Click here for more information.
  • +

    CIO Live Podcast #79: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires Part II 05 October, 2007 06:00:00

    For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders.
  • +

    CIO Live Podcast #78: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires 28 September, 2007 17:34:25

    For his new book, The Outsider's Edge: The Making of Self-Made Billionaires, social researcher Brent D Taylor spent four years of intensive research investigating the psychological make-up and backgrounds of some of the world's richest men and women, including IT luminaries Bill Gates, Larry Ellison and Steve Jobs. Taylor discovered that, despite working in different industries and coming from different upbringings, they all have one thing in common -- they are all outsiders.
  • +

    CIO Live Podcast #77: Panasonic Speeds Up Trans-Pacific File Transfers, Part III 21 September, 2007 07:00:00

    Part three in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    CIO Live Podcast #76: Panasonic Speeds Up Trans-Pacific File Transfers, Part II 14 September, 2007 07:00:00

    Part two in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    CIO Live Podcast #75: Panasonic Speeds Up Trans-Pacific File Transfers, Part I 07 September, 2007 07:00:05

    Part one in our three-part special report from CIO's sister publication Network World in the US, as Paul Desmond reports from the Network World IT Roadmap Conference in Santa Clara, California. With development teams in the US and Japan, Panasonic needed a more efficient way to move very large files between the two locations. Iben Rodriguez, IT consultant for Panasonic Research and Development, explains how a storage-area network and virtual server technology helped speed up WAN performance.
  • +

    Chris Hoff on Virtualization and Cloud Computing 20 November, 2008 10:55:00

    Chris Hoff, chief security architect for the systems and technology division at Unisys and an advisor on the Skybox Security customer advisory board, is one of the biggest critics of virtualization security out there. Not because it isn't important - but rather because it is vital and needs to mature rapidly.
  • +

    Cybersecurity is focus of new start-up incubator 20 November, 2008 07:19:00

    Texas uni announces the Institute for Cyber Security.
    The University of Texas at San Antonio Tuesday announced a technology incubator aimed at fostering IT security-based start-ups within the state.
  • +

    Dilip Sarangan on Physical Security M&A 20 November, 2008 11:18:00

    Dilip Sarangan tracks physical security companies for Frost & Sullivan. He expects the industry's "need to have" products to weather the economic storm well, with the big players (now including IBM and Cisco) looking for value-priced acquisitions.
  • +

    International Challenges in PCI Security 20 November, 2008 09:15:00

    In a country that's seen many regulatory compliance challenges this decade, the headaches of PCI security tend to be analyzed from a largely American perspective.
  • +

    PCI council sharpens oversight of security auditors 19 November, 2008 10:53:00

    Quality assurance plan targets security assessors and scanning vendors
    The PCI Security Standards Council Monday unveiled a plan to sharpen oversight of the hundreds of security-service providers now authorized to evaluate merchant networks under the organization's Payment Card Industry data standards.
CIO Webcast Innovation #8 - What are the biggest roadblocks to IT's involvement in innovation at your company?
Watch the latest latest edition of CIO Innovation which is now available for download.
Watch the webcast
Sign up to the CIO Innovation update email


CIO Live Podcast #79: Brent D Taylor, author of The Outsider's Edge: The Making of Self-Made Billionaires Part II
Listen to the latest edition of CIO Live which is now available for download.
Listen to the podcast
Sign up to the CIO Live email
Whitepaper

CRM your salespeople will love

Winning over the sales department and obtaining buy-in at all levels is crucial to the success of any CRM initiative. Discover how you can let salespeople work how they want to and reduce their administrative burden with the latest CRM technology.