IT in healthcare

Company information

Hospitals, insurers and the public sector are stepping up their investments in technology. The government and private insurers are beginning to pay hospitals more for higher-quality care, and frequently the only way to measure quality, and improve it, is with information technology.

The experiences of many hospitals nationwide suggest that healthcare is improving with the use of information technology. As healthcare accounts for 15 percent of the U.S. economy, or $1.7 trillion, efficient information technology is crucial and directly affects the nation's economy. Dr. David J. Brailer, President George W. Bush's point person on health-information technology initiatives, predicts that tech investments in healthcare could lead to $140 billion a year in cost savings by 2014, or an estimated 6 percent of healthcare spending in any given year.

On January 24, 2005, U.S. Senator Edward Kennedy (D-MA) sponsored S. 16, "The Affordable Health Care Act," a bill to reduce the cost of health care coverage and improve coverage accessibility for all Americans. "The Affordable Health Care Act" seeks to amend the Federal Food, Drug, and Cosmetic Act to revise provisions governing the importation of prescription drugs. It also establishes the Office of Health Information Technology to improve the quality and efficiency of health care through the use of information technology.

In July of 2005, Senator Michael Enzi (R-WY) introduced an amendment to the "Public Health Services Act" through the "Health Information Technology Act" (S. 1418). This is also an important step to ensuring interoperability of standards and technology in the healthcare industry.

Ultimately, concern over the fact that 100,000 Americans die each year as a result of preventable medical errors is the main impetus for transformation from a traditional paper-based healthcare system to a 21st century system.

HP's position

HP supports "The Affordable Health Care Act," Senator Enzi's "Health Information Technology Act", and funding of the Office of Health Information Technology as these efforts serve to enhance the adoption of a nationwide interoperable health information technology system. HP also supports full funding of the President's FY06 initiatives for the National Health Information Office and the President's eHealth pilot program. If granted adequate funds, technology could have the same dramatic effect on productivity and accessibility for healthcare as it has had on other industries.

Integrating and streamlining the functions that ultimately contribute to an individual's overall well being offers an opportunity to further develop quality, cost-efficient healthcare service. Cumbersome outdated record keeping methods make healthcare both inefficient and costly.

Duplicative activities such as data re-entry still account for one-third of healthcare costs and hinder improvements in healthcare systems. With worldwide healthcare spending at $3.3 trillion, and the United States accounting for $1.6 trillion, the potential savings associated with streamlining health care processes are substantial.

As the healthcare system transitions to a technology platform, it is imperative that the public and private sector protect personal patient information. HP has long advocated - and worked hard to pass - comprehensive pro-consumer privacy regulations at the federal level, and has worked hard to achieve its current reputation as a 'go-to' source on privacy policies for policymakers and consumer groups.

HP's history

HP collaborates with members of the health and wellness fields to improve the wellness of patients while reducing costs. HP recognizes that the patient-centered paradigm of healthcare services offers substantial promise. In turn, HP plans to deliver new products and treatments that will ultimately result in the ability of individuals and society to make more informed, cost-effective wellness choices.

The health industry reports nearly seven in ten Americans favor integrating technology into the nation's healthcare system. Because of the shift in interest for integrating technology into our healthcare processes, HP is focused on delivering solutions that will:

	•	enable collaboration among healthcare ecosystem partners;
	•	drive process efficiency to maximize effectiveness;
	•	manage both regulatory change and clinical innovation; and
	•	improve the quality of patient care

Ensuring secure medical records is a top priority for HP. HP has been a leader in developing both 1) the Better Business Bureau (BBB) Online privacy seal program, which provides one of the strongest and internationally recognized privacy protection and compliance programs, and 2) working with Consumers International promulgating global guidelines for consumer dispute resolution.

Additional information

Please contact Larry Estrada at (202) 378-2508 for more information on HP and technology in healthcare.