[Med-privacy] LATimes 5 companies to launch electronic health files

Fri, 08 Dec 2006 07:31:22 -0500

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LATimes.com=20
=20
http://www.latimes.com/technology/la-na-health7dec07,1,2856021.story?page=
=3D1&coll=3Dla-headlines-technology=20
Business : Technologyusiness=20
5 companies to launch electronic health files
=20
The experiment is designed to let patients keep medical records in one place=
, reducing mistakes and costs.
=20
By Ricardo Alonso-Zaldivar, Times Staff Writer
December 7, 2006=20
=20
WASHINGTON =E2=80=94 Five major U.S. corporations have joined forces to crea=
te a "medical Internet" on which some 2.5 million people can compile their p=
ersonal health records in one location, providing convenient access to every=
thing from prescriptions and cholesterol readings to family medical historie=
s.

The system, unveiled Wednesday, could reduce the chances of medical mistakes=
, improve treatment of chronic illnesses and eventually save billions of dol=
lars by avoiding duplicative services, its designers say. Currently such inf=
ormation =E2=80=94 often cumbersome paper records =E2=80=94 is scattered amo=
ng the files of a patient's doctors, pharmacists and other care providers, m=
aking it difficult to coordinate treatment.

If the experiment works, experts say, most of the country could follow suit=20=
in five to 10 years, though privacy advocates say stronger safeguards are ne=
eded.

Rising costs

The new venture reflects growing concern among businesses that healthcare co=
sts of American workers =E2=80=94 largely borne by their employers =E2=80=
=94 may be unsustainable in the global economy.

Employers continue to pay most of America's $2 trillion annual bill for heal=
thcare. Many corporate leaders have concluded that inefficiencies in the cur=
rent system add to costs.

Indeed, the National Assn. of Manufacturers said Wednesday it would spearhea=
d an effort to persuade other big companies to quickly adopt electronic reco=
rds. And next week, major insurers plan to unveil a model medical record for=
 computer systems that could be adopted nationwide.

The five companies in the consortium contributed $1.5 million each to create=
 the system, called Dossia. The firms =E2=80=94 Applied Materials, BP Americ=
a, Intel, Pitney Bowes and Wal-Mart =E2=80=94 contracted with an independent=
 third party to design and operate it.=20

"It's not something that will be held by employers or by insurance companies=
," said Intel Chairman Craig R. Barrett.

The companies plan to start signing up employees by the middle of next year.=
 Among them, they cover 2.5 million workers, family members and retirees. Th=
e system's operator =E2=80=94 the nonprofit Omnimedix Institute of Portland,=
 Ore. =E2=80=94 hopes to open it to other companies soon after, for a modest=
 per-employee fee.

The companies said the system could increase efficiency and =E2=80=94 by giv=
ing patients detailed information =E2=80=94 promote healthier behavior as we=
ll as more effective treatment, which could save money.

"The benefit of this system has to be in the hundreds of billions," said Mic=
hael J. Critelli, chairman and chief executive of Pitney Bowes.=20

Participation in Dossia will be voluntary. Patients will control who sees th=
eir information and what is released to doctors, the companies said.

Backers of electronic records say existing federal laws and regulations are=20=
enough to protect individuals.

"What Congress could do is use a light hand in further regulation of privacy=
," said J.D. Kleinke, executive director of Omnimedix. "There is tremendous=20=
risk if it is done in a draconian way."

But the wealth of sensitive personal information in Internet medical files w=
ould make them an attractive target for data thieves, and some privacy advoc=
ates say strict new federal protections are needed before the nation embrace=
s electronic records. Legislation to set ground rules for such a system bogg=
ed down in Congress this year, and Democrats have promised to resurrect it w=
ith stronger safeguards for privacy. Some advocates are advising employees n=
ot to sign up for such programs until the government acts.

"We've got to have privacy first in order to get the benefits of health info=
rmation technology," said Dr. Deborah C. Peel, a psychiatrist who heads the=20=
Patient Privacy Rights Foundation in Austin, Texas.=20

Among the protections Peel thinks should be spelled out is a right to sue ov=
er unauthorized disclosure.
=20
Privacy laws

Existing federal laws do not give individuals the right to control who sees=20=
their medical information but instead defer to state laws, said Alison Knigh=
t, a lawyer with the advocacy group Electronic Privacy Information Center.=20

"The new Congress has a chance of putting in some better privacy safeguards,=
" she said.

The Dossia system was built by technicians recruited from banking and financ=
ial companies, which have already set a high standard for security and accur=
acy, Kleinke said.

The electronic record would become an employee's lifelong property, travelin=
g with the worker to a new job and, after retirement, the Medicare system.=20

Individuals could enter information into their personal record, but the syst=
em also could be configured to collect data automatically from pharmacies, d=
octor's offices, hospitals, insurers and other electronic sources in the hea=
lthcare system. Documents could also be scanned in, and Dossia could accommo=
date X-rays and other visual records.

Before going to a medical appointment, a patient would log on to Dossia and=20=
view information on current health issues, medications, allergies and test r=
esults.=20

The individual would select what information to include in a report for the=20=
doctor. More information on the system is available at dossia.org.

*
ricardo.alonso-zaldivar@latimes.com
________________________________________________________________________
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yle=3D"FONT-WEIGHT: bold; FONT-SIZE: 12pt; COLOR: black; FONT-FAMILY: Arial"=
>The experiment is designed to let patients keep medical records in one plac=
e, reducing mistakes and costs.<o:p></o:p></SPAN></FONT></B></div>

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<div class=3DMsoNormal><FONT face=3DArial size=3D2><SPAN style=3D"FONT-SIZE:=
 10pt; FONT-FAMILY: Arial">By Ricardo Alonso-Zaldivar, Times Staff Writer<br=
>
December 7, 2006 <o:p></o:p></SPAN></FONT></div>

<div class=3DMsoNormal><FONT face=3D"Times New Roman" color=3Dblack size=3D3=
><SPAN style=3D"FONT-SIZE: 12pt; COLOR: black"><o:p>&nbsp;</o:p></SPAN></FON=
T></div>

<div class=3DMsoNormal style=3D"MARGIN-BOTTOM: 12pt">WASHINGTON =E2=80=94 Five major U.S. corporations have joined force=
s to create a "medical Internet" on which some 2.5 million people can compil=
e their personal health records in one location, providing convenient access=
 to everything from prescriptions and cholesterol readings to family medical=
 histories. 
 
The system, unveiled Wednesday, could reduce the chances of medical mistakes=
, improve treatment of chronic illnesses and eventually save billions of dol=
lars by avoiding duplicative services, its designers say. Currently such inf=
ormation =E2=80=94 often cumbersome paper records =E2=80=94 is scattered amo=
ng the files of a patient's doctors, pharmacists and other care providers, m=
aking it difficult to coordinate treatment.<o:p></o:p></div>

<div class=3DMsoNormal style=3D"MARGIN-BOTTOM: 12pt"> 
If the experiment works, experts say, most of the country could follow suit=20=
in five to 10 years, though privacy advocates say stronger safeguards are ne=
eded. 
 
 
Rising costs 
 
The new venture reflects growing concern among businesses that he=
althcare costs of American workers =E2=80=94 largely borne by their employer=
s =E2=80=94 may be unsustainable in the global economy. 
 
Employers continue to pay most of <?xml:namespace prefix =3D st1 ns =3D "urn=
:schemas-microsoft-com:office:smarttags" /><st1:place w:st=3D"on"><st1:count=
ry-region w:st=3D"on">America</st1:country-region></st1:place>'s $2 trillion=
 annual bill for healthcare. Many corporate leaders have concluded that inef=
ficiencies in the current system add to costs. 
 
Indeed, the National Assn. of Manufacturers said Wednesday it would spearhea=
d an effort to persuade other big companies to quickly adopt electronic reco=
rds. And next week, major insurers plan to unveil a model medical record for=
 computer systems that could be adopted nationwide. 
 
The five companies in the consortium contributed $1.5 million each to create=
 the system, called Dossia. The firms =E2=80=94 Applied Materials, BP Americ=
a, Intel, Pitney Bowes and Wal-Mart =E2=80=94 contracted with an independent=
 third party to design and operate it. 
 
"It's not something that will be held by employers or by insurance companies=
," said Intel Chairman Craig R. Barrett. 
 
The companies plan to start signing up employees by the middle of next year.=
 Among them, they cover 2.5 million workers, family members and retirees. Th=
e system's operator =E2=80=94 the nonprofit Omnimedix Institute of <st1:plac=
e w:st=3D"on"><st1:City w:st=3D"on">Portland</st1:City>, <st1:State w:st=3D"=
on">Ore.</st1:State></st1:place> =E2=80=94 hopes to open it to other compani=
es soon after, for a modest per-employee fee. 
 
The companies said the system could increase efficiency and =E2=80=94 by giv=
ing patients detailed information =E2=80=94 promote healthier behavior as we=
ll as more effective treatment, which could save money. 
 
"The benefit of this system has to be in the hundreds of billions," said Mic=
hael J. Critelli, chairman and chief executive of Pitney Bowes. 
 
Participation in Dossia will be voluntary. Patients will control who sees th=
eir information and what is released to doctors, the companies said. 
 
Backers of electronic records say existing federal laws and regulations are=20=
enough to protect individuals. 
 
"What Congress could do is use a light hand in further regulation of privacy=
," said J.D. Kleinke, executive director of Omnimedix. "There is tremendous=20=
risk if it is done in a draconian way." 
 
But the wealth of sensitive personal information in Internet medical files w=
ould make them an attractive target for data thieves, and some privacy advoc=
ates say strict new federal protections are needed before the nation embrace=
s electronic records. Legislation to set ground rules for such a system bogg=
ed down in Congress this year, and Democrats have promised to resurrect it w=
ith stronger safeguards for privacy. Some advocates are advising employees n=
ot to sign up for such programs until the government acts. 
 
"We've got to have privacy first in order to get the benefits of health info=
rmation technology," said Dr. Deborah C. Peel, a psychiatrist who heads the=20=
Patient Privacy Rights Foundation in <st1:place w:st=3D"on"><st1:City w:st=
=3D"on">Austin</st1:City>, <st1:State w:st=3D"on">Texas</st1:State></st1:pla=
ce>. 
 
Among the protections Peel thinks should be spelled out is a right to sue ov=
er unauthorized disclosure.<o:p></o:p></div>

<div class=3DMsoNormal><FONT face=3DArial size=3D2><SPAN style=3D"FONT-SIZE:=
 10pt; FONT-FAMILY: Arial"><o:p>&nbsp;</o:p></SPAN></FONT></div>

<div class=3DMsoNormal style=3D"MARGIN-BOTTOM: 12pt">Privacy laws 
 
Existing federal laws do n=
ot give individuals the right to control who sees their medical information=20=
but instead defer to state laws, said Alison Knight, a lawyer with the advoc=
acy group <st1:place w:st=3D"on"><st1:PlaceName w:st=3D"on">Electronic</st1:=
PlaceName> <st1:PlaceName w:st=3D"on">Privacy</st1:PlaceName> <st1:PlaceName=
 w:st=3D"on">Information</st1:PlaceName> <st1:PlaceType w:st=3D"on">Center</=
st1:PlaceType></st1:place>. <o:p></o:p></div>

<div class=3DMsoNormal style=3D"MARGIN-BOTTOM: 12pt"> 
"The new Congress has a chance of putting in some better privacy safeguards,=
" she said. 
 
The Dossia system was built by technicians recruited from banking and financ=
ial companies, which have already set a high standard for security and accur=
acy, Kleinke said. 
 
The electronic record would become an employee's lifelong property, travelin=
g with the worker to a new job and, after retirement, the Medicare system. <=
br>
 
Individuals could enter information into their personal record, but the syst=
em also could be configured to collect data automatically from pharmacies, d=
octor's offices, hospitals, insurers and other electronic sources in the hea=
lthcare system. Documents could also be scanned in, and Dossia could accommo=
date X-rays and other visual records. 
 
Before going to a medical appointment, a patient would log on to Dossia and=20=
view information on current health issues, medications, allergies and test r=
esults. 
 
The individual would select what information to include in a report for the=20=
doctor. More information on the system is available at dossia.org. 
 
*<o:p></o:p></div>

<div class=3DMsoNormal><I><FONT face=3DArial color=3Dblack size=3D2><SPAN st=
yle=3D"FONT-SIZE: 10pt; COLOR: black; FONT-STYLE: italic; FONT-FAMILY: Arial=
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