eHI Guides Communities Through Financial Terrain of Health Information Exchange
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Karla Hurter |
February 10, 2006 |
Determining the costs and benefits of a local health information exchange system just got easier.
February 10, 2006, Washington, D.C. The nation's leading non-profit organization championing the transformation of healthcare through the mobilization of information—or health information exchange (HIE)--now offers a step-by-step guide to help state, regional and community collaborative efforts weigh the costs, develop a financial plan and write the budget for implementing a health information exchange network. The new tools allow on-the-ground implementers to tailor the budget for local factors, and help local employers exercise their buying power to encourage healthcare improvements that are realized through the adoption of health information technology.
Today the eHealth Initiative released two new tools as part of its Connecting Communities Toolkit Value Creation and Financing Module: the Cost Model for Health Information Exchange and the eHI RFI for employers.
On Jan. 31, 2006, eHI announced release of the seven-module Toolkit for communities interested in HIE. Those who register on the eHI Web site receive a set of key principles, roadmaps, sample community experiences and module resources to begin or advance a community health information exchange initiative or regional health information organization (RHIO). Overwhelming response to the Toolkit release (more than 700 registrants downloaded the Toolkit in the first week) underscores the demand in the field for real-world HIE tools.
"eHI research demonstrated that securing upfront funding is a common roadblock for nine out of ten local initiatives, and more than 84 percent say developing a sustainable business model is a major challenge," said Janet Marchibroda, eHI's chief executive officer. "The Value Creation Module of the Toolkit walks local initiatives through all the vital steps to plan and develop a financially sustainable organization."
A number of recent nationwide studies point to the potential for health information exchange to reduce the cost of healthcare by eliminating inefficiencies in the system. For instance, a 2004 study found that standardized healthcare information exchange among healthcare IT systems could deliver national savings of $86.8 billion annually after full implementation and could result in significant direct financial benefits for providers and other stakeholders.[1]
But national studies have done little to assist local RHIOs to develop locally viable cost models. Most of the more than 200 such initiatives nationwide are governed by volunteer boards, making the time-saving benefit of eHI's Value Creation Module an exceptional value.
"One of the challenges community initiatives face is finding solid resources that explain how to get these systems going," said Amy Helwig, MD, MS. Helwig is eHI's medical director for clinical and policy strategies, offering oversight and leadership to the Value Creation and Financing Working Group. "These new tools--the Cost Model and the eHI RFI--will further equip local communities in the development of a business plan."
The first tool, offered free-of-charge through scholarships to state, regional and community-based initiatives focused on HIE--is a scalable cost model that starts with local data on current community providers and IT capabilities and then proceeds through steps to determine which of eight common HIT functions will be included in the local health information exchange (such as e-prescribing, pay-for-performances systems, or electronic health records). The interactive tool produces a two-year estimated budget that includes infrastructure costs, personnel and other considerations. Those interested in scholarships should email connecting.communities@ehealthinitiative.org.
"We like this tool because people need to know how much health information exchange is going to cost," Helwig said. "This model is scalable so it can be used for any size organization. Some communities just starting out may only want to include one or two key functions, while others may be able to start with all eight. More advanced systems can use it to budget for functions they want to add."
Another tool offered free of charge to the public, is aimed at employers who want to collaborate with their health plans to move health information exchange forward. The "eHI RFI Buyers Guide" is a model RFI providing specific questions employers can ask health plans about steps they have taken or plan to take to create incentives and encourage use of healthcare IT within their own organizations.
"This tool was created by eHI's Employer/Purchaser Advisory Board (EPAB)," Helwig said. "It is designed to be used as part of a larger RFI employers often send to healthcare plans for contracting purposes."
"Employers pay the healthcare bill for employees, so we have a vested interest in quality care at a reasonable cost," said Dale Whitney, corporate health care manager for UPS and co-chair of eHI's EPAB. "The RFI tool helps to identify those health plans that encourage the use of information technology to enhance patient safety and increase quality while encouraging more efficient, effective care. But most importantly it lets health plans know that employers consider use of and application of HIT an important part of doing business."
As part of the overall eHI Connecting Communities Toolkit, the Value Creation Module is a hands-on resource. Additional tools will be added to the module over the coming months.
"We know that communities need more than ideas to advance healthcare IT- they need tools, whether they are just starting out or are already advanced," Marchibroda said. "This Toolkit is a living, breathing resource that will continue to offer new know-how and best practices communities need to save countless hours and limited financial resources."
About eHealth Initiative and its Foundation
The eHealth Initiative and its Foundation are independent, non-profit affiliated organizations who engage the multiple stakeholders in healthcare, including clinicians, employers, health plans, healthcare IT suppliers, hospitals, laboratories, patient groups, pharmaceutical and medical device companies, pharmacies, and public health agencies, to improve the quality, safety, and efficiency of healthcare through information and information technology.
For more information, go to http://www.ehealthinitiative.org.
About the Connecting Communities Toolkit
The eHealth Initiative's Connecting Communities Toolkit is a set of principles and resources designed to equip states, regions and communities with the information and expertise to begin or advance health information exchange initiatives and "RHIOs" to improve healthcare quality and efficiency. It offers insight into areas crucial to start-up and successful survival, such as organization and governance, value creation and financing, practice transformation and quality, policies for information-sharing, technical aspects and public policy and advocacy. Much of the work related to the Toolkit was supported by funds from a cooperative agreement of the Health Resources Services Administration Office of the Advancement of Telehealth.
The Toolkit is available online at http://toolkit.ehealthinitiative.org/
Additional Reading:
Frequently Asked Questions about the Toolkit
August, 2005 report Emerging Trends and Issues in Health Information Exchange
eHI Funded Communities, Community Profiles, Community Directory
[1] "The Value of Healthcare Information Exchange and Interoperability," CITL, Partners HealthCare System, Boston, MA. 2004 – Published and distributed by the Healthcare Information and Management Systems Society
