Connecting California: The Role of State Leadership in Advancing Health Information Technology CCST Board and Council Meeting Molly Coye, MD, MPH Chair, CalRHIO Planning Committee CEO, Health Tech October 19, 2005

2 The Vision If I go to see my doctor, she or he will have all the information needed right on the spot. I won't have to fill in any more forms, lab tests won't be repeated, and my doctor will know if I've been to see another doctor, or to a hospital, and what medicines I'm taking.

3 The Vision If I'm taken to the hospital in an emergency, the nurses and doctors in the emergency department will be able to find out all the information they need to take care of me - within seconds.

4 The Vision I have my own personal health record, that I keep at home on my computer or as a printed record. It has all the information I need about my medical history, current conditions, medicines I'm taking, the doctors that are caring for me, and education about my medical conditions.

5 The Vision If there is a public health emergency.…my records will be available to treat me or my family at any location. The Vision: Health care that is safe, of high quality, and efficient, in an information-rich environment that meets the needs of consumers, patients, providers and others in Californias communities.

6 Lessons from Katrina There may not have been an experience that demonstrates, for me or the country, more powerfully the need for electronic health records... than Katrina." Mike Leavitt, HHS Secretary

7 Lessons from Katrina Starting yesterday (9/14), doctors in eight shelters for evacuees could go to the Internet to search prescription drug records on more than 800,000 people from the storm-racked region. Washington Post

8 National HIT Picture Federal advocacy for healthcare IT Secretary Leavitt a strong proponent Limited federal funding $125M proposed for health care HIT in FY 2006 Re-structuring the market Establishing standards Harmonizing privacy and security legislation Safe harbor for hospital funding of physician IT Accrediting products as standard-compatible Stimulating development of models for national highway Linkage to Pay-for-Performance Medicare pilot MedPAC proposal for pay-for-use of IT Interoperability standards underway Strong White House support Congressional stampede

9 The Baseline: Is California Ready? Estimates, for all California consumers and patients: 10 %: online appointment scheduling 20 %: pharmacy refills 40 %: enroll in health plan online 5 %: with physician 5 %: pay medical bills online 10 %: customized health education 5 %: personal health record online Source: Structured inquiry of California health care leaders, November 2004

10 Is Technology Transforming California Healthcare ? Estimates for Infrastructure: 10 %: physicians using EMR light 30 %: integrated clinical data within integrated delivery networks (IDNs) 5 %: integrated data: plan - IDNs <2 %: community health data shared <5 %: telemedicine-enabled 10 %: EMR light 20 %: full EMR Source: Structured inquiry of California health care leaders, November 2004

11 The Opportunity: Safety, Satisfaction and Efficiency Increase access to information Without HIE, 30% of the time, physicians could not find information previously recorded in a paper chart Reduce duplicate testing Same drug or radiology exam ordered 11% of the time; patients agreed to duplicate testing 50% of the time Ensure complete information Physicians unaware of 1 in 4 patient prescriptions Eliminate uncertainty On average, test results come from 5 or more locations; problems with retrieval accounted for 1 in 7 admissions and 1 of 5 lab tests and radiology exams Reduce data collection/transfer costs Cost of tracking down and obtaining information on the data user/originator sides range from $12 - $28 per visit *Electronic Medical Records – Getting it Right and Going to Scale. W. Edward Hammond, III, Ph.D. Commonwealth Fund background paper. publication #695. January

12 The Opportunity: Cost and Savings Annual Cost National - $7.7 billion $6.5 billion for hospitals $1.2 billion for physicians California - $77 million (est.) Annual Savings National - $81 billion $77 billion improved efficiency $5 billion reduced medical errors California - $8.1 billion (est.) Potential benefits of EHR adoption: (Assume 90% adoption over 15 years) Sources: National estimates: Rand California estimates: Extrapolation

13 The Opportunity: Office-Based Patient Care

14 Health Technology Center The Vision Advancing the use of new technologies to make people healthier. The Mission To create a trusted source of expert information about the future of healthcare technologies. The Means A nonprofit pooled research center for delivery systems and health plans. Funding independent of technology developers and vendors.

15 HealthTech Partners Baylor Health Care System Bon Secours Health System Carolinas HealthCare System Catholic Healthcare West Centers for Medicare and Medicaid Services (CMS) Federal Liaison CHRISTUS Health Parkview Health Partners HealthCare System The Queens Medical Center Veterans Health Administration Overlake Hospital UC Davis Health System Methodist Health System Lumetra Ascension Health CAPH John Muir/Mt. Diablo Health System Group Health Cooperative Kaiser Permanente Mills-Peninsula Health Services PeaceHealth Premier, Inc. Providence Health System Sutter Health VHA Inc. WellPoint Health Networks Texas Health Resources New 2005 SCAN Health Plan University of Chicago Hospitals and Health System Palomar Pomerado Health Memorial Hermann Sandia National Laboratories TEKES/SITRA Trillium Health Centre Stormont-Vail HealthCare Stanford Hospital and Clinics University HealthSystem Consortium (UHC) Froedtert Hospital Hospital Corporation of America (HCA) Greenville Medical Center Health Alliance of Greater Cincinnati Blue Shield of California Foundation Lucile Packard Medical Center Chinese Hospital & Health Plan Catholic Health Initiatives CHI) St. Alphonsus Regional Medical Center Rockingham Memorial Salem Hospital El Camino Hospital Banner Health System

16 CalRHIOs Role Independent umbrella organization Leading a collaborative effort to: incrementally build a statewide information exchange for California implement projects that build systems for data exchange, and demonstrate their feasibility and utility ensure participation by safety net providers and underserved populations in data exchange and IT investment build financial and business case models for health information exchange facilitate creation of common governance, process, technology, and other elements needed for regional and statewide data exchange organizations

17 encourage business, healthcare, and policy leaders to create private and public policy agendas and funding for data exchange and IT investment help organizers of local and regional data exchange efforts within California work toward common goals and share what they develop and learn ensure that Californias data exchange projects are consistent with national technology platforms and networks identify legislation and regulation necessary for statewide data sharing CalRHIOs Role

18 Statewide Highway for Health Information Exchange C - 2 A - 3 Multi-Community RHIO C Found 2 Community A Little RHIO B Found 1 Medical Group/ MSO None Payers found 15 Community B Large RHIO A Found 3 B - 1 National Health Information Network CalRHIO Looking for Private Ryan – in CA! Community C

19 Geographic Coverage Santa Barbara Mendocino CalRHIO and CAPG cover the entire state Long Beach San Diego Marin Loma Linda Riverside Smart Health Central Valley Santa Cruz RHIO Santa Cruz CCN Northern Sierra Health-e-LA

Projects Linking hospital emergency departments across the state Defining the infrastructure necessary for statewide health data exchange Supporting enhanced safety in medication management Improving the efficiency of administrative functions for plans and providers Giving consumers more direct access to health information in a Personal Health Record

21 CalRHIOs Future Role Core functions of CalRHIO Convene and support communications, problem-solving Resource center State policy analysis and development Representation to federal agencies Health care IT in 2010 National highway for data exchange established Public utility or commercial models State and federal privacy and security protections Standards support interoperability Two key tasks for CalRHIO Statewide exchange of health data Statewide adoption of electronic health records and supporting applications by all health care entities

22 Other States Act Nationwide 150+ bills in state legislatures addressing HIT 13 states have introduced or passed HIT legislation or have Governor support through an Executive Order 40 states have one or more community-based data exchanges or grants for regional health information organizations 28 states have formal efforts for secure health care data exchange underway Source: Health Information and Management Systems Society (HIMSS)

23 New York Legislature Created Major Funding $1 billion over 4 years to: Finance HIT investment in projects that will build a statewide infrastructure to share clinical information $1.5 billion over 3 years through fed/state Medicaid waiver for HIT investment Created HIT grant sources and other budget initiatives in $3 million for physician HIT development $10 million for pay for performance (P4P) initiatives which will connect to HIT development Focus Regional HIE projects E-prescribing EHRs

24 Tennessee Governor leveraging HIT to reform states Medicaid Program Gov. Phil Bredesen announced pilot to improve health care delivery in SW Tennessee; managed by State in partnership with Vanderbilt University Medical Center 1 million patients in 3 counties; 5 year demonstration pilot Funded by AHRQ, technology provided by Vanderbilt University and Accenture Focus: ED linkage Clinical and administrative, eventually financial

25 Arizona Governor takes lead in Call to Action Summit Gov. Janet Napolitano led October Summit to create a successful statewide electronic medical records system More than 300 representatives from the health care, technology and government sectors attended Gov. acted on recommendations from a steering committee she had formed to develop a roadmap for providing EMRs to all Arizonans by 2010 Funding TBD

26 Kentucky Legislation calls for statewide network Nation's first legislated statewide electronic health network. (Took four years to pass law.) Universities of Kentucky and Louisville to create the Kentucky Health Care Infrastructure Authority, which would coordinate efforts such as conducting pilot projects and managing the network. Gov. Ernie Fletcher (R), a physician, to appoint members to a Kentucky e-Health Network Board, which would oversee the development and implementation of the network. The board to meet monthly and include health care providers, patient representatives and other stakeholders.

27 Florida Governor creates advisory board Gov. Jeb Bush, May 4, 2004, created the Health Information Infrastructure Advisory Board. Established to advise the Agency for Health Care Administration (AHCA) which administers Florida's $14 billion Medicaid program, licenses and regulates more than 32,000 health care facilities and 30 HMOs, and publishes health care data and statistics Funding from AHRQ Grant

28 Gulf States Infrastructure expected to emerge post Katrina Example: KatrinaHealth.org developed in 10 days; available from anywhere in US an online service for authorized health professionals to gain electronic access to prescription medication records for evacuees from Hurricane Katrina medication and dosage information to renew prescriptions, prescribe new medications, and coordinate care

29 Why Now? Federal leadership, pressure and pending legislation Technology makes data exchange possible, affordable California and other states are mobilizing Standards are under development State leadership

30 Potential State Role in California Funding Waiver: Enable Medi-Cal to pay its share of investments in community-wide IT infrastructure; provide financial incentives to providers who use HIT; add telemedicine as covered service Funding: Explore use of proceeds from converted not-for-profits to create investment fund/revolving loan fund to support RHIOs Authorize finance authority or other entity to establish revolving loan fund Create budget line-item to fund CalRHIO Mandates Mandate that every California nursing home resident have an EHR with retrievable medication data by July 1, 2006 Mandate that every Californian have a PHR by 2007

31 Potential State Role California Legislation Researching need: removal of legal barriers to acquisition and effective use of HIT Example: privacy and security of personal health information Researching need: legislation to create certification process for RHIOs trusted intermediaries charged with facilitating HIE and promoting public health promote consumer trust limit liabilities resulting from good-faith participation in HIE

32 Are we prepared for the Big One? How can we help?