MEDITECH News

Making the Case for Quality
HCA's Chief Medical Officer Dr. Jonathan Perlin explains why I.T. investment is a sound business strategy for U.S. hospitals, even during a recession.
(11/6/2009)

All providers want to deliver the highest quality care possible, just as all patients want to receive the best treatment available for their conditions. But at what cost? Across the country, many hospitals still worry that undertaking new I.T. quality initiatives may not be feasible in the midst of a shaky economy.

However, HCA's Chief Medical Officer and Clinical Services President Jonathan Perlin, MD, believes there is nothing to fear in pursuing care excellence, even during times of fiscal strife. In his experience with the health care network, as well as in his prior role as the Chief Executive Officer of the Veterans Health Administration (VHA), he's found that using electronic health records for quality improvement is not only safer for patients, but also a solid financial strategy for hospitals.

"Economic pressures will continue for hospitals well after this recession is over," says Dr. Perlin. "That's why it's so important for us to shift our focus toward value-based health care, which certainly includes information technologies. There are many paths to health and payment reform, but the bottom line is, good quality and great safety are always the best business case."

Necessary Tools for a Challenging Future
One of the biggest problems with the U.S. health care industry today, according to Dr. Perlin, is that there is little relation between the money which is spent on care delivery, and eventual patient outcomes. "Our industry is unlike many others, in that a great deal of inefficiency and errors are still tolerated," he says.

"You are far more likely to have a physician who doesn't practice proper hand-washing, than to lose luggage during airline travel. Many hospitals are in the same position that the VHA was in when I was there—they need to change their ways, or risk going out of business."

Hospital acquired infections is one particular area where Dr. Perlin sees I.T. not only potentially saving lives, but also saving revenue for cash-strapped facilities. "We're currently seeing 1.7 million unreimbursable hospital infections per year, contributing to approximately 99,000 deaths. In addition, one out of five Medicare patients are readmitted less than 24 hours after a hospital stay," he says.

"Providers need patient information to flow with these challenges to patients' safety, and provide better continuity and preventative services. Besides being good for the community, this will inevitably help the hospital's bottom line as well. Using I.T. tools for performance measurement, it's possible to save millions of dollars each year, just for avoiding unnecessary pneumonia hospitalizations."

Chronic disease is another area where information technologies could have a substantial financial impact, particularly ailments which stem from obesity. "Over 64 percent of adults in the U.S. are either overweight or obese, which is a real health crisis in the making," he says.

"If we are to avoid the tremendous costs associated with diabetes and heart disease, we need to start being proactive, by using I.T. to identify and track the progress of those at the highest risk. Electronic health records make it possible for us to monitor patients across multiple episodes of care, to keep their conditions under control and out of the Emergency Room. Any caregiver who does not use these technologies will be at a competitive disadvantage over the long haul."

Good Quality = Good Business
By pursuing value-based health care strategies and using a solid I.T. system, Dr. Perlin believes that hospitals will be able to create a virtual network and span across traditional silos, making critical patient information more accessible and useful for addressing current health concerns. "We're no longer in the Industrial Age, where more equals better. In our Information Age, better actually equals more," he says.

"To survive in these times, we need to continually improve and change if we hope to keep up. HCA has seen good quality lead to good business, and I expect we'll see that trend for other prospering organizations in the years ahead."






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