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HEALTHCARE
UNBOUND: CONVERGENCE OF CONSUMER AND HEALTHCARE TECHNOLOGIES
THE OPPORTUNITY
Consumer
healthcare technologies are driving opportunities to serve patients
in new ways and in new settings. Forrester Research recently coined
the term “Healthcare
Unbound” to encompass the trends toward self care, mobile care,
and home care. More specifically, Forrester Research describes
Healthcare Unbound as “technology in, on and around the body that
frees care from formal institutions.”
In addition
to dramatically changing traditional healthcare delivery, Healthcare
Unbound attracts a range of companies that previously have not been
deeply involved in healthcare -- consumer electronics, telecom, and
information technology companies to name a few.
Better Health
Technologies’ recent consulting work with Samsung Electronics
highlights some of the dramatic benefits flowing from the
convergence of consumer and healthcare technologies:
1) Improving
patient adherence to clinical guidelines
2)
Gathering vital sign data from patients remotely
3)
Providing information to patients -- anywhere, anytime
4)
Automating information flow among patients, healthcare providers,
and payors -- reducing costs AND improving quality.
5)
Keeping people in their own homes (rather than in hospitals or
nursing homes)
Are consumers
interested? In the enlightening report, “Consumer
Healthcare Electronics: Consumer are Ready, Willing and Able”,
Accenture found that consumers are eager to play an active role in
managing their health and embracing emerging home healthcare
technologies.
What are
examples of converging consumer and healthcare technologies?
CONSUMER
TECHNOLOGIES: smart houses, personal communications devices
(PDAs, cell phones, smart phones, etc.), broadband (cable, DSL,
satellite), digital cameras & video, wireless, etc.
HEALTHCARE TECHNOLOGIES: remote patient monitoring, personal
health records, electronic medical records, e-prescribing,
e-disease management, e-clinical trials, telehealth/telemedicine,
sensors, traditional medical devices (becoming smaller, internet
enabled, implantable), call centers, customer relationship
management technologies and Internet/web technologies (interactive
web sites, doctor/patient email, virtual physician visits, etc.)
SEIZING THE
OPPORTUNITY
With
assistance from Drapin & Co. and BHT,
The Center for Business Innovation (TCBI) is organizing a
conference:
Healthcare Unbound:
A
Conference & Exhibition on the Convergence of Consumer and
Healthcare Technologies
You can view
a
preliminary agenda for the conference. Are you interested in
speaking? Exhibiting? Sponsoring? Attending? Call or write
Satish Kavirajan, Managing Director, TCBI, (310) 265-2570,
sk@tcbi.org.
Are you
interested in discussing how your company can benefit from
Healthcare Unbound? Call or write Vince Kuraitis, Principal, Better
Health Technologies at (208) 395-1197,
vincek@bhtinfo.com.
We will be
bringing you more details over the coming months....stay tuned.

YOU HAVE
A 55% CHANCE OF GETTING THE RIGHT MEDICAL CARE
The Quality
of Health Care Delivered to Adults in the United States
New
England Journal of Medicine; June 26, 2003
Abstract
Rand Organization Fact Sheet with link to full NEJM article
Results:
Participants received 54.9 percent...of recommended care. We found
little difference among the proportion of recommended preventive
care provided (54.9 percent), the proportion of recommended acute
care provided (53.5 percent), and the proportion of recommended care
provided for chronic conditions (56.1 percent).
Conclusions:
The deficits we have identified in adherence to recommended
processes for basic care pose serious threats to the health of the
American public. Strategies to reduce these deficits in care are
warranted.

SURVEY
SAYS “TELEMEDICINE REIMBURSEMENT PROGRESSING BETTER THAN EXPECTED”
Private Payer Reimbursement Information Directory
American
Telemedicine Association (ATA) and AMD Telemedicine, May 2003
Telemedicine Private Payer Reimbursement Insurance Survey
Mark Vanderwerf, President, AMD Telemedicine, Inc.
Presented at the ATA 8th Annual Meeting; April 30, 2003
There appears
to be a critical mass for private payer reimbursement for
telemedicine!
-
38 programs in
25 states currently receive reimbursements from private payers
-
3 programs
receive reimbursement for store and forward
-
7 Programs
receive reimbursement for facility fees
-
Private payers
appear to follow leadership of Blue Cross more than Medicare or
Medicaid

CYE&Y
DESCRIBES MEDICAL MANAGEMENT BENCHMARKS
Managed Care Measures: Results of the 2002 Managed Care Benchmarking
Study
Cap
Gemini Ernst & Young (CGE&Y), May 2003
Here are a
few relevant findings relating to medical management benchmarks:
PMPM (per
member per month) spending on Medical Management was up 34% over
1999 benchmarks, but reductions were noted in certain areas and
plans were spending in a narrow range. In particular, utilization
management (UM) staffing dropped by 50% and FTEs performing hospital
precertification and referral authorization were less than one-third
of 1999 levels.
Nonetheless,
investment in focused medical management programs continue to
demonstrate returns. Higher spending on medical management is
strongly associated with lower medical loss ratios....
Overall
utilization of disease management (DM) programs has remained steady,
with the ratio of members in DM programs relatively unchanged
between the 1999 to 2002 Benchmarking Studies. However, the
programmatic focus changed.... Diabetes programs remained strong,
but membership shifted out of high-risk obstetrics and into asthma
and coronary artery disease (CAD) programs.

A HOME
TELEHEALTHCARE REPORT FOR YOUR REFERENCE SHELF
“Home
Telehealthcare: Process, Policy, and Procedures” is a new, 150-
page, practical report for home care planners and providers
embarking on the new frontier of home telehealth.
Chronic
disease management services and new and affordable tools are key
areas of focus. Sample in-house policies and forms for patient and
home assessments, equipment maintenance routines, and other
management concerns are provided to help achieve the consistency
needed for effective telehealthcare program planning and delivery.
More
information is available at
www.InformationForTomorrow.com or from the author, Audrey
Kinsella, at 800-506-6587/301-581-0090.

DOCTOR/PATIENT EMAIL -- WELL SUITED FOR PATIENTS WITH CHRONIC
CONDITIONS
Doctors Who Are Using E-mail With Their Patients: a Qualitative
Exploration
Journal
of Medical Internet Research, April-June 2003
The authors
surveyed physicians currently using e-mail with their patients.
They found that chronic disease management is one area of consistent
agreement for respondents. These physicians felt that e-mail is a
very effective way of managing patients whom they know well. Many
cited examples of using e-mail to manage conditions such as
diabetes, hypertension, psoriasis, and even congestive heart failure

E-PRESCRIBING: 5 OBSTACLES, 5 POTENTIAL SOLUTIONS
5 Obstacles To E-Prescribing: 5 Approaches To Overcoming Them
American
Medical News; May 12, 2003
Obstacle 1:
Physicians can't afford the technology.
Potential solution: Someone else must pay for or subsidize the
up-front cost.
Obstacle 2:
There is no direct benefit to doctors.
Potential solution: Those who do benefit could offer financial
incentives to physicians.
Obstacle 3:
The technology is poorly designed and more inefficient than the
paper-based system it's supposed to replace.
Potential solution: Companies should design technology that reflects
how doctors work and offers them many benefits in a seamless
package.
Obstacle 4:
There is a lack of interoperability.
Potential
solution: Companies should seek a wider adoption of clinical data
standards so different information systems will work with each
other.
Obstacle 5:
There are regulations that ban or can be interpreted to ban
e-prescribing.
Potential solution: The federal government needs to develop laws
facilitating both e-prescribing and a clearer understanding of the
applicability of the Health Insurance Portability and Accountability
Act.

THE
BUSINESS CASE FOR DIABETES MANAGEMENT IS CHALLENGED TO SHOW
SHORT-TERM PAYOFFS
The Business Case For Diabetes Disease Management At Two Managed
Care Organizations: A Case Study
The
Commonwealth Fund, April 2003
Diabetes care
is often poorly managed, and the disease exacts a high toll on
society in terms of health costs and lost productivity. Analysis of
two health plans with established diabetes programs shows that the
business case for diabetes disease management is weak. The initial
costs for such programs are substantial, and plans may not be able
to reap the potential savings until 10 years after a health plan
member is enrolled in the program.
To make
diabetes management more attractive to health plans, a financing
system that pays plans and providers on the basis of quality of
services would need to be put into place. For example,
fee-for-service payments could add reimbursement for group visits
and electronic communications. Moreover, the institutions that
benefit from improved diabetes care, including Medicare, Medicaid,
and employers, could contribute to the financing of diabetes disease
management.

U.S. IS
AMONG LEAST VULNERABLE COUNTRIES TO CHALLENGES OF AGING
The 2003 Aging Vulnerability Index: An Assessment of the Capacity of
Twelve Developed Countries to Meet the Aging Challenge
Watson-Wyatt Worldwide, March 2003
The rapid
aging of developed countries will pose a major challenge for global
prosperity and stability during the first half of the twenty-first
century. Watson-Wyatt analyzed characteristics of 12 developed
countries and grouped them into low/medium/high vulnerability:
Low Vulnerability
1.
Australia
2. United
Kingdom
3. United
States
Medium Vulnerability
4. Canada
5. Sweden
6. Japan
7.
Germany
8.
Netherlands
9.
Belgium
High Vulnerability
10. France
11. Italy
12.
Spain
The Index was
compiled from indicators in four basic categories, each dealing with
a crucial dimension of the aging challenge: 1) Public-burden
indicators, 2) Fiscal-room indicators, 3) Benefit-dependence
indicators, and 4) Elder-affluence indicators.

WORTH
REVIEWING!
Connecting Healthcare in the Information Age
Markle
Foundation; June 5, 2003
Health Plans: The Next Wave
HealthLeaders: June 10, 2003
Today’s system treats health crises, but it fails at chronic disease
care
The Hill;
June 18, 2003
National Medical Spending Attributable To Overweight And Obesity:
How Much, And Who’s Paying?
Health
Affairs; May 14, 2003
New model gauges health risks
Employee
Benefit News, May 2003
How Does Quality Enter into Healthcare Purchasing Decisions?
The
Commonwealth Fund, May 2003
Disease Management: The Programs and the Promise
Milliman
USA May 2003
Ageism: How Healthcare Fails the Elderly
Alliance
for Aging Research May 2003
Value-Based Purchasing: A Review of the Literature
The
Commonwealth Fund, May 2003
Broadband Adoption at Home: A Pew Internet Project Data Memo
Pew
Internet Project; May 18, 2003
Investment in Population Health in Five OECD Countries
Organisation for Economic Co-operation and Development; April 22,
2003
Use of the Internet and E-mail for Health Care Information
Results From a National Survey
Journal
of the American Medical Association; May 14, 2003
European Union citizens and sources of information about health
The
European Opinion Research Group, March 2003
Success Stories in Telemedicine: Some Empirical Evidence
Telemedicine Journal and e-Health, Spring 2003
If Cars Can Have Microprocessors, Why Can't People?
Health IT
World; May 27, 2003

E-CareManagement News is a
complimentary e-newsletter sent to over 3,000 worldwide readers
courtesy of Better Health Technologies, LLC <http://www.bhtinfo.com/>.
For business and clinical decision
makers who are developing innovative approaches to managing chronic
diseases, Better Health Technologies is an eHealth and disease
management consulting company that can assist you with
strategy/business planning, finding financing, finding initial
customers, and developing key partnerships.

Disclosure --
Samsung Electronics, South Korea,
is a client of Better Health Technologies.

You may copy, reprint or forward all
or part of this newsletter to friends, colleagues or customers, as
long as the use is not for resale or profit and the following
copyright notice is included intact. Copyright © 2003, Better Health
Technologies, LLC. All rights reserved

We welcome your opinions and
comments. Write or call Vince Kuraitis JD, MBA at vincek@bhtinfo.com,
(208) 395-1197 or Harry Leider MD, MBA at harryl@bhtinfo.com, (410)
252-7361. |