1. Quality-Based Purchasing and Health Information Technology Inland Northwest Health Services Thomas Fritz, CEO

2. Decade of Health Information Technology "America needs to move much faster to adopt information technology in our health care system. Electronic health information will provide a quantum leap in patient power, doctor power, and effective health care. We can't wait any longer." Tommy Thompson, Secretary, DHHS July 21, 2004

3. National Strategic Framework Goal 1. Inform Clinical Practice Goal 2 – Interconnect Clinicians Goal 3 – Personalize Care Goal 4 – Improve population health

4. Rationale for HIT & QBP Improving quality of care –Providing more complete and timely access to patient data, when and where care is delivered Increasing operational efficiency –Reducing time needed to access and manage information –Using information to better manage resources Reducing costs –Eliminating duplicative procedures –Reducing delays in facility processes and patient procedures

5. Rationale for HIT & QBP Utility of HIT and QBP is limited without electronic health information exchange –Cannot readily import data from other health care providers, so patient record is incomplete –Cost savings are reduced because staff must still manage paper-based records that come into the practice from other sources –Increased potential for unnecessary, redundant testing because record is incomplete –More complete information allows for more accurate management of resources

6. Realities Consumers already expect and believe that practitioners are appropriately sharing clinically appropriate information to take care of them Consumers believe that practitioners keep all clinical records in a computer-based system Consumers have a high level of trust with doctors and hospitals managing their data

7. Electronic Medical Record A common Electronic Medical Record system operates in all participating hospitals, physician offices and clinics, providing one standardized clinical data structure and presentation Visit Histories Cumulative Laboratory results Radiology exam profile/reports Transcription reports including e-Sign Patient Demographics Computerized Physician Order Entry Clinical Notes

8. QBP - Remove Waste Under use, overuse, misuse Process waste – work flow Administrative waste Medical Errors Right diagnosis, right treatment

9. Inland Northwest Health Services Since 1998: We leveraged collaborative assets to control costs and provide high levels of expertise using shared resources Our intent was simply to create a system whereby physicians would use the assets to improve patient care We wanted to minimize duplication of clinical tests and cost We wanted to move in a direction of clinical computing rather than billing and claims management Our original intent was only to provide support to hospitals

10. Inland Northwest Health Services Strategic Focus Areas 1.Community electronic medical record – single client identifier (MPI) 2.Physician system adoption and usage 3.Patient safety, public health 4.Operational efficiency 5.Computerized physician order entry 6.Evidence based medicine adoption and acceptance 7.Decision support systems

11. Building the Foundation -- Created a system of complete accountability –Provide “value-based” physician convenience systems to readily obtain and deliver real-time clinical results ie digital image store –Create “community asset” and provide extensive community education and marketing for all partners

12. Lessons Learned We learned that physician champions were essential for acceptance and adoption We learned that we had to demonstrate trust in data management, integrity and security. We had to become a “neutral trusted party”

13. Obstacles and Challenges Gaps in the technology standards create serious interoperability issues Education and studies have not adequately helped in understanding Return-on-Investment Minimal physician office automation has slowed the longitudinal electronic medical record – Puget Sound Health Alliance, First Choice & Health Care Authority Poor IT investment decisions – hospitals and physicians are buying IT without knowing enough – Quality Improvement Organization (QIO) effort

14. Outcomes One hospital realized cost savings of $1.3 million over four years by implementing a new hospital IS within the INHS shared services model Participating hospitals spend 1.9% - 2.0% on HIT versus national average of 3.1%+ Pre-INHS, one hospital needed 98 FTEs for IS. INHS uses 57 FTEs to support that account, which now includes HIS, approximately 200 other IT systems, and around 2500 desktop devices We increased physician adoption to 40% - still inadequate

15. Spokane Internal Medicine 10 physicians; implemented EMR in mid-90’s Results –Significant improvements in workflow and operational efficiency –All patient information and current medical literature available electronically in each exam room –Reduced 4 FTEs due to ability to receive laboratory, hospital and imaging information electronically

16. Spokane Ear, Nose and Throat 12 physicians; implemented EMR in 1998 Results –Prior to implementation, spending $144,000 per year on transcription services, and $120,000 per year maintaining paper records –In the first year after implementation, reduced transcription costs by 83% –Have eliminated costs for managing paper records –Added three physicians at minimal cost to practice

17. Physicians Clinic of Spokane 18 physicians; implemented EMR in 1999 Results –Costs for transcription services reduced by more than 80% within two years (from $330,058 per year to $56,465) –Reduced number of FTEs in laboratory from 13.52 to 9.12, with a 25% increase in lab orders –Communication between providers and support staff improved dramatically

18. Success of the System We started with our own hospitals and today have 38 hospitals, with over 4,400 beds, participating in the integrated information system More than 50 clinics, 400 Physician practices (1000+ physicians) are able to view hospital, laboratory and imaging data via a private network in Spokane More than 1000 physicians accessing patient records wirelessly in hospitals via electronic devices in Spokane Connect Fairchild AFB and the Spokane VA Hospital 76 hospitals, clinics and public health agencies connected to the region’s telemedicine network 225 member technical staff serving over 20,000 end users

19. PHS Southern California Valley Hospital Palmer Alaska

20. Benefits of Regional Approach Patient care is improved through better availability of more complete medical records at all points of care Medical errors are decreased through use of innovative technology including bar-coded medication verification and electronic nursing documentation Rural health care is enhanced and health personnel shortages addressed through video and data connectivity to regional experts Hospital operation is more efficient through integrated billing and clinical information systems Overall health system savings are achieved through creative use of shared services and resources Our system providers are technically ready for QBP

21. Thank You Tom Fritz fritzt@inhs.org www.inhs.org