Government Mandates and Sustainability Cited as Concerns

WASHINGTON, DC – July 22, 2010 – Today, the eHealth Initiative (eHI) released a new
report entitled The State of Health Information Exchange in 2010: Connecting the Nation to
Achieve Meaningful Use. The report identifies significant growth in the industry, as well as
rising concerns related to new government policies, and an increased focus on patients. The
report was shared with several hundred state and industry leaders during the National Forum
on Health Information Exchange in Washington, DC.

The eHealth Initiative has been tracking the progress of health information exchange
initiatives for seven years. This year, eHI identified 234 active health information exchange
initiatives across the country and 199 organizations responded to the annual survey.
Several key findings emerged from the survey results:

Despite recent funding, significant challenges exist to supporting provider
attainment of meaningful use.
The survey revealed that despite expanding capabilities, the ability of HIEs to support
providers as they become Stage 1 meaningful user will be challenged by the current number
of operational exchanges and current capacity of health information exchange initiatives.

"From the results, it is clear that health information exchange initiatives are focused on
supplying the services that will help providers reach their targets," Commented Micky Tripathi,
PhD, President and CEO of Massachusetts eHealth Collaborative. "While we're on the right
track with the service offerings, we still haven't achieved the necessary critical mass of
participation."

More research is needed to determine the key characteristics of sustainable systems.
The report confirms that sustainability remains one the key challenges before the initiatives.
The State Designated Entities (SDEs) are new entrants in the field, and it is not clear what will
be their impact on the initiatives.

"The State Designated Entities (SDEs) are poised to foster growth across the field of health
information exchange," said Dr. Marc Overhage, Director of Regenstrief Institute and CEO of
Indiana Health Information Exchange. "Among other challenges, the SDEs are going to face
the question how to keep the doors open once the federal funding ends. Failure to sustain
the SDEs may hinder the overall advancement of health information exchange."

New challenges are rapidly emerging related to federal policy and governance of the
health information exchanges.
131 initiatives cited addressing government policy mandates as a major challenge.

More organizations are reporting cost savings through reductions in staff time and
redundant testing through the use of health information exchange.
More initiatives reported health information exchange had reduced staff time spent on clerical
administration and filing (33); reduced staff time spent on handling lab and radiology results
(30); and decreased dollars spent on redundant tests (28).

Health information exchange initiatives have increased their focus on patients.
Initiatives are providing greater access to patients to not only view (44 in 2010 up from 3 in
2009), but to also update their health information (31 in 2010 up from 7 in 2009).

“There is definite progress here, but it doesn’t mean we can rest on our laurels,” noted
Jennifer Covich Bordenick, CEO at eHealth Initiative. “More initiatives and providers need to
document cost savings, and promote services that involve patients in their healthcare.”

The report and an interactive map of health information exchange activity are available on the
eHI website at: www.ehealthinitiative.org

Printing and dissemination of the survey report was supported by: Axolotl, Microsoft, Navinet,
Partners HealthCare and Thompson Reuters.

###

About eHealth Initiative
The eHealth Initiative (eHI) is an independent, non-profit, multi-stakeholder organization
whose mission is to drive improvements in the quality, safety, and efficiency of healthcare
through information and information technology (IT). eHI is the only organization that
represents all of the stakeholders in the healthcare industry. eHI advocates for the use of HIT
that is practical, sustainable and addresses stakeholder needs, particularly those of patients.
For more information, visit www.ehealthinitiative.org.