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Many Hospital Executives Expect Big Health IT Investments This Year

Surprise, surprise.  A new report from the Premier healthcare alliance finds that many hospital executives will make their largest capital investments in IT this year.

To prepare the report, known as the spring 2013 Economic Outlook, Premier spoke with 530 survey respondents, most of whom were hospital leaders.  Survey respondents also included materials and practice area managers, reports iHealthBeat.

Roughly 43 percent of respondents said that their health organization’s biggest capital investment over the next year would be in health IT, a jump of 21 percent from two years ago.  Offering a hint on where the money may be going, the report also found that 32 percent of respondents can’t currently share data across the continuum of care.

Other clues as to where the spending is going come from the study’s topline finding, which predicts a big shift from inpatient to outpatient care.

According to Premier, only 35 percent of respondents are expecting to see an increase in inpatient spending this year as compared to 2012, down 30 percent from predictions made last year. Meanwhile, 69 percent of respondents said they expect to see an increase in 2013 outpatient volume compared to last year.

Some additional intelligence from the report:

* 22 percent of respondents are in an ACO, and 55 percent plan to be by the end of next year

* 27 percent don’t have plans to pursue the ACO model, and may look to bundled payment, care management fees or pay for  performance options

*  29 percent said overutilization of products and services and 22 percent said lack of clinical coordination were the biggest drivers of healthcare costs

* 48 percent said reimbursement cuts had the biggest impact on their health systems

* 40 percent said capital spending would increase over the next 12 months as compared with the previous year

* Almost 37 percent project a capital spending decrease

May 8, 2013 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies.

Why an Everyday Player is NEVER the Designated Hitter

The following is a guest post by Jeff Urban.
MedSys - Jeff Urban
Jeff Urban is the Area Vice President of MedSys Group where he is responsible for the management of business development in the West, Great Lakes, and Desert regions. He is in charge of the development of Regional Account Executives and Area Account Managers for each region. Jeff is also a member of the strategy management team, which is comprised of the core leadership of the organization. He also participates in the process improvement team.

With the introduction of the affordable care act, the ubiquitous feeding frenzy for HIT talent began in 2009, and has yet to slow down. As the shortage of individuals escalates, pay has accelerated to levels unseen. Hiring full-time employees by hospitals has become less commonplace, as the demand and upside of consulting is too lucrative for talent to turn down. Prices are increasing, and the current model is becoming unsustainable. As competition becomes fiercer and decisions are being made faster and without adequate time for proper due diligence, many hospitals and staff augmentation firms feel they have found a way out. The belief that a pure Information Technology individual, once trained, can fill the role of a Healthcare IT Subject Matter Expert (SME) is becoming more widely accepted, and if perpetuated, has the chance to create more issues than it solves.

With baseball season, we will undoubtedly hear more baseball rhetoric. I tend to think of a hospital’s IT individuals as a baseball team. The everyday players have an understanding of the entire game, fielding, hitting, base running, etc., while the designated hitter or DH is an individual that only hits. He has lots of power, and the team wants him to focus on hitting, nothing else. He is, in all accounts of the word, a specialist. You can think of IT and HIT in the same context. SME’s are just that… specialist. They focus on their niche’, and know every aspect of it.

When a market changes and the specialists are now more in demand, organizations (including baseball teams) will look for less costly alternatives to fill the void. An everyday player at a lower rate, if trained correctly, can certainly take the DH role, they believe. However, the results are all too many times, in complete contrast to the ultimate goal.

Everything comes down to the intricacies of the role. At the specialist level, the slightest mistake can quickly become a glaring issue. In baseball, ½ inch can mean the difference between a home run and a lazy fly ball. Thus, the attention to detail needed is extremely high. SME’s, not unlike the designated hitter, have more specific issues than typical IT individuals. None of which are more prevalent than trust. The users (physicians and clinicians) must have trust that the SME has an understanding of what they face on a daily basis. Change management can be a very demanding task and this is made dramatically more difficult if the users do not believe the SME has a strong understanding of how one clinical workflow intertwines with another. Without this experience, the non-specialist can unknowingly prioritize certain goals without the needed correlation to user adoption. With no clinical background the ability to deliver customizable products with an ease of use, as to not weaken patient safety and timeliness, is diminished rapidly.

If you have ever listened to the play-by-play analysts of a baseball game, you can become lost in what they are talking about. With terms like RBI, ERA, OBP, WHIP, etc. it can seem like they are speaking a foreign language that only they can understand. One may get pieces, but disseminating that information can be very difficult. Healthcare is no different. Thus, the other glaring weakness of the transitioning pure IT individual is terminology. Communication is a key component to a successful implementation. If the learning curve of terminology is drastically high, the project can screech to a crawl. More importantly if communication is misunderstood, it can dramatically influence the final outcome’s success or failure. Thus, in a sense, SME’s have developed more art than science in language and processes. This makes transition very difficult.

If just training won’t cut it, what can a hospital do to alleviate the costs? One thought becoming more common is the training of tech-savvy clinicians, often called super-users. While a clinician shortage has tamed this somewhat, the idea of giving a super-user the necessary classroom knowledge, is still much less painful than the alternatives. Another practice rapidly becoming popular is teaming a super user with a SME. The knowledge transfer can be relatively seamless, and will perpetuate trust. Once the super user is fully trained, the hospital gained another specialist, making the entire team stronger. While both thought processes hold merit, they do come with drawbacks. Most importantly taking clinicians from an already understaffed area can have far reaching affects. Also, as a hospital organically grows, it opens itself up to competition. The specialists are valuable, and with other hospitals willing and able to take talent, the primordial revolving door can take hold quickly. There is nothing more frustrating for a hospital executive than to train an employee to only lose them to a competitor.

While an everyday player can substitute for the DH on some things, and relieve some stress, the possible downside makes the transition a tricky one at best. An everyday player may make contact, but is that what is needed at this time? With deadlines approaching quickly, I’d rather have my specialist at the plate, as he gives my team the best chance at a homerun, and thus winning.

May 2, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 5000 articles with John having written over 2000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 9.3 million times. John also recently launched two new companies: InfluentialNetworks.com and Physia.com, and is an advisor to docBeat. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.

Survey: Healthcare CIOs Average $200K In Annual Base Salary

While numbers varied widely depending on organizational factors, healthcare CIOs earned an average base salary of $208,417 in 2012, according to a recent survey conducted by CHIME.

The survey, which drew responses from small, medium-sized, large and rural facilities, drew responses from 263 CIOs from late December 2012 and early January 2013.

Some key findings from the survey included the following:

Multi-hospital, academic medical center execs make more  The average base salary reported for multi-hospital system execs was $254,054. and the academic medical center CIOs reported an average $243,229 base salary.

Smaller-hospital CIOs make much less  Top IT execs at the smallest hospitals, CAHs with 25 beds or less, got an average base salary of $125,573. Execs at hospitals with fewer than 200 beds reported an average base salary of $150,956, or about 28 percent than the overall average, notes iHealthBeat.

Standalone execs make less  CIOs with stand-alone community hospitals also responded lower income than the average, at $178,786, roughly 14 percent less than the overall average.

*  Titles matter, a lot  Hospital leaders with the title of CIO had average base salaries of $199,890, about four percent less than the overall survey average, but when they had additional titles salaries went up starkly. CIOs who were also titled vice president had an average salary of $206,788, while those with CIO and executive vice president had an average salary of $310,326, or almost 49 percent over average.  Meanwhile directors of IS or IT averaged $128,193, or about 38 percent less than the survey average.

Reporting relationships count As iHealthBeat reports, salaries varied depending on who the CIO reports to in the organization.  The 44 percent of respondents who report to the CEO earned ann average of $217,170, or about 4 percent more than average.  Meanwhile, those reporting to the CFO earned an average base salary of $175,263, or 16 percent less than the average of salaries reported.

Few and small raises reported  Despite the huge amount on health IT execs’ plates, most survey respondents reported minimal  pay raises, with almost 75 percent saying that their base salaries increased by less than 5 percent between 2011 and 2012.

So, readers, how do these numbers look to you?  Do they reflect the realities of your institutions? And how about those low raises — think hospitals are risking losing critical talent by holding that line?

April 9, 2013 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies.

Purging EHR Data

Let’s talk about the always controversial and intriguing topic of purging EHR data. It’s something that’s no doubt talked about in every healthcare organization, but I honestly see very few people talking about it. So, let me get the discussion started.

I find that most people are on two sides of the aisle when it comes to EHR data. You have the quality of care and research folks on one side of the aisle that say that they need all of the EHR data from throughout an entire person’s life in order to do their job at the highest level possible. Basically, they want all of the healthcare data collected for an individual available at any time any where.

On the other side of the aisle are the risk management folks who say that keeping the EHR data around opens up an institution to be liable for that data. Instead, if that EHR data is appropriately purged per state and federal record retention guidelines, then the healthcare organization is no longer liable. At least that’s the theory I’ve heard many argue when it comes to retention of health records.

The issue of record retention is not a new one. Many of these discussions happened with paper charts in the past. Do we store the old patient charts or do we shred them? I imagine whatever policy your hospital institution has for old patient charts is how you’re likely to approach EHR record retention as well. Although, the shift to electronic does pose some interesting changes to the dynamics.

For example, many hospitals likely chose to purge paper charts partially based on the cost of storing a large quantity of patient charts that will likely rarely get used. The cost of long term storage of an electronic patient chart is much less than storing a paper chart. Not to mention the cost of electronic storage is going down every day.

Another difference is the accessibility of an old paper chart stored in some offsite storage location. Even if you needed the chart it takes a lot of time to go and retrieve the old paper chart. This is not an issue with old electronic patient charts which can be easily pulled up on any computer.

The challenge for EHR purging is that most EHR vendors don’t provide an EHR chart archive or purge capability. EHR vendors should probably look to PACS and vendor neutral archive vendors for examples of how they do it. They’ve been doing this for a while since the size of the files are so large. Should the EHR data be purged from the main EHR and pushed to more of a document management type of software? These aren’t easy questions to answer.

I’m also reminded of a rural hospital who commented on a previous post I did about purging EHR data. They suggested that in the rural environment where you have deep relationships with all of the patients, it’s unacceptable for them to purge any EHR data. I thought this was an interesting commentary. No doubt the relationship between a rural healthcare provider and their patients has unique features that aren’t experienced in a large city.

What’s your approach to purging EHR data? Which features do you wish were available?

April 4, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 5000 articles with John having written over 2000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 9.3 million times. John also recently launched two new companies: InfluentialNetworks.com and Physia.com, and is an advisor to docBeat. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.

Healthcare Big Data vs Skinny Data

I have heard a number of people talk about healthcare big data was all the buzz in the healthcare IT world. There’s little doubt that there’s a lot of conversation happening around big data and analytics in healthcare. While I think there’s tremendous value to be found in healthcare big data, I’ve been more intrigued by what Encore Health Resources calls skinny data.

You can read more about the Encore Health Resources CoreANALYTICS announcement, but the approach is what I find really interesting. Instead of trying to create a huge enterprise data warehouse that can be all healthcare data for everything, they instead decided to focus on created a smaller solution that just focused on one major problem: meaningful use.

Encore Health Resources was open about the reason why they chose to go with a skinny data model as opposed to a full enterprise data warehouse model, time and budget constraints. They basically were asked to produce a result with a limited budget and so there wasn’t time or money to do anything but achieve the desired results. One of the architects of the system said, “If you can give me the extra data for free, then give it to me. If it costs [time or money] more to get that data, then don’t do it. Although, if you don’t give me these other data elements, then I’m going to have issues.”

It seems like a pretty simple concept to me that makes me wonder why I haven’t seen more of it in healthcare. Encore has taken these concepts and started to expand beyond meaningful use and into other areas like at-risk populations, clinical analytics for care coordination, and financial analytics.

I asked them if CoreANALYTICS would eventually grow into what essentially becomes an enterprise data warehouse. They suggested that it wouldn’t likely ever get that large, but I can see a path to that type of result.

What I do love about skinny data is that it’s user the information a hospital has available and creating actual results. It’s one thing to have the data, but it’s what you do with that data that really matters.

April 2, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 5000 articles with John having written over 2000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 9.3 million times. John also recently launched two new companies: InfluentialNetworks.com and Physia.com, and is an advisor to docBeat. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.

Are Hospitals Ready for HIPAA Omnibus?

I’ve been thinking quite a bit about the new HIPAA Omnibus rules ever since I interviewed Rita Bowen at HIMSS about the new HIPAA rules. While Rita highlights some other changes that came as part of HIPAA Omnibus, I still think that the biggest change is all of the new details around business associates.

There are a lot of changes when it comes to business associates and the work to make sure everything is in place with business associates requires the healthcare institution and the business associates. Considering the HIPAA Omnibus rule went into effect on March 26th, there’s no time for an organization to delay this work. They’re already behind if they haven’t done this already.

Considering the lack of discussion I’ve seen from hospitals, I have a feeling that many of them haven’t dealt with this issue yet at all. In fact, I wouldn’t be surprised if many of them didn’t even really realize that they had to do anything. Instead, I expect that many just figured it was on the back of the business associate to change. That’s just not the case and the hospital should be consulting their HIPAA lawyer to make sure everything is in place.

I’d love to hear if others are having different experiences. Did you go through the HIPAA Omnibus rule? Did you have to make a lot of changes? Did you change how you work with business associates?

March 30, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 5000 articles with John having written over 2000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 9.3 million times. John also recently launched two new companies: InfluentialNetworks.com and Physia.com, and is an advisor to docBeat. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.

Video Demo of Metro’s Point-of-Care Technologies at HIMSS13

One of my goals at HIMSS is to try and give those who can’t attend HIMSS a chance to get a taste of what the experience of visiting the HIMSS exhibit hall floor is like. I’d been doing some writing for Metro on their Point of Care blog recently, and so I took the chance at HIMSS to film Erik VanLaningham doing a demo of some of the Metro point-of-care hospital solutions. It’s a quick video that shows a nice look into BCMA and point of care technologies in action.

March 21, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 5000 articles with John having written over 2000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 9.3 million times. John also recently launched two new companies: InfluentialNetworks.com and Physia.com, and is an advisor to docBeat. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.

HIMSS: Hospitals Achieving Meaningful Use Milestones

Hospitals are making good progress toward achieving Meaningful Use milestones, a new study by HIMSS suggests.

HIMSS, which surveyed 298 healthcare CIOs between December and February, found that 66 percent had already qualified for Meaningful Use stage 1, while another 4 percent expected to do so before the end of 2012, Information Week reports.

Meanwhile, 75 percent of respondents said they expect to attest for stage 2 in 2014, which  as readers probably know is the first year of stage two attestations.

Given the ambitions noted by the CIOs, it’s not surprising to learn that 66 percent of them said they thought their budgets would definitely or probably increase this year.  Of the remainder, 15 percent said their budgets would remain level, and 8 percent expected to see a decrease.

Last year, achieving Meaningful Use was the hospital CIOs’ top business objective, named by 24 percent of respondents, but this year, it fell to 15 percent. This year, the top health IT business objective has switched over to survival, with 21 percent saying their key goal was to sustain the financial viability of their organizations.  This was followed closely by improving patient care, which came in at 19 percent.

Still, Meaningful  Use will obviously stay top of mind for the CIOs, who may be better prepared than last year but still have much to handle.

After all, they expect to make serious money on achieving MU goals, HIMSS concluded. The survey found that about 30 percent of hospital CIOs expected an ROI of up to $2 million on stage 1, another 23 percent a return of $2 million to $3 million, and 16 percent expected ROI of $4 million to $5 million.

March 6, 2013 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies.

We Have an HIE – The Internet

Jon Fox, MD and Founder of HealthApp Connect sent me a great message:

We already have a great free HIE and it’s called the internet

He makes an interesting point. Reinforces why I called for hospital CIO’s to start making interoperability a reality as opposed to just talking about it. The technology and connectivity is there. Every hospital is connected to the internet and therefore already connected to every hospital out there. That simplifies the issues, but enough people are overcomplicating what needs to happen. Maybe we need some more people in healthcare willing to look at interoperability more simply.

February 11, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 5000 articles with John having written over 2000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 9.3 million times. John also recently launched two new companies: InfluentialNetworks.com and Physia.com, and is an advisor to docBeat. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.

Level the Playing Field with RACs as They Enter Practice Settings

Lori-Brocato-Healthport
Lori Brocato is Director of Audit at HealthPort. With more than 15 years in health care technology, Lori serves as HealthPort’s resident government and third party audit expert, sharing educational information and best practices with health care facilities via Webinars, media interviews and industry articles. Additionally, she is the AudaPro product manager for HealthPort and authors her own blog, Audit Insights, on the HealthPort website. Lori is also a monthly contributor for RACMonitor, an online knowledge source for healthcare providers. She is RAC certified by the Medicare RAC summit and a member of HIMSS and HFMA.

In my most recent blog post here, I presented some helpful hints for reducing the impact of typical RAC audits. In a nutshell, I emphasized that moving toward a centralized, more fully automated, paper-free environment would soften the blow of the ever-increasing administrative burden of audits. Maximizing technology, I concluded, will bolster efficiency and enhance organization, the traditional keystones of corporate success.

But now, to complicate matters, RACs have widened their nets. Nearly all hospitals have deepened their relationships with physician practices, and the RACs have taken notice. Hospitals must now be vigilant of audit activity surrounding the physician practices and take appropriate steps to mitigate the interruptions and expense wrought by additional inquiries.

RACs Make First Move into Practices

Two RACs have already promised upcoming reviews focused at physician practices and medical groups. RACs have also promised to expand E/M coding, the most likely source of overbilling or duplicate billing as hospitals accustom themselves to working in concert with these new business partners. Additionally, RACs now often request physical copies of medical records. In the past, automated reviews based on data analysis of claims an remittance information were the norm. To make matters worse, long-standing, regional health plan auditors are also getting in on the action, requesting and reviewing patient records.

Obviously, RACs have made some game-changing enhancements to their efforts to locate and retrieve billing errors and overcharges.

Here are four ways hospitals can level the playing field with RACs as it relates to their owned or affiliated physician practices and medical groups; minimizing the impact these inquiries have on staff and budgets.

Knowledge is Power –Provide your physician practices with access to RAC managers, historical program information and revenue impact reports. Inform them of key RAC targets for medical groups and deliver real, practical tips on how to mitigate risk.

It’s a Team Effort – Interview each practice administrator to identify and track all RAC activity and record requests. Explain the importance of centralization and incorporate practice administrators into the organization’s overall audit program.

Connect the Dots — Create a specific workflow or use database and tracking technology that follows a specific process to manage audit requests across both inpatient and outpatient settings; including physician groups and medical practices.  Open the lines of communication with practice administrators to ensure all RAC requests are properly communicated, logged and processed.

Learn from Mistakes — Conduct internal audits and track and review the results regularly. Take educational action based on findings. And finally, use data from internal audits and key reports to validate that any and all vulnerability are identified and fixed.

Audits are disruptive and a real threat to your revenue, and they are growing in frequency. The trend towards stronger hospital-physician relationships enforces the need for hospitals to take action, bring physicians into their centralized RAC strategy, and ensure everyone’s revenue is protected.

February 5, 2013 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 5000 articles with John having written over 2000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 9.3 million times. John also recently launched two new companies: InfluentialNetworks.com and Physia.com, and is an advisor to docBeat. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit.