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Cerner’s Siemens Acquisition and the Impact on the DoD Bid

One topic I didn’t address in my post covering the $1.3 billion Siemen’s acquisition by Cerner is how this will impact the $11+ billion DoD bid. There’s a lot of discussion about what this acquisition will do. Let me pull out my crystal ball and give you my thoughts.

I personally think that this acquisition will have very little impact on which cluster of companies will win the DoD EHR contract. Some might say that Cerner gains some advantage by having some of the Siemens capabilities on board. Others could argue that Cerner will be distracted with the Siemens acquisition and so they wouldn’t be able to focus on such a large EHR contract. While both of things have some truth, I really don’t think they’ll factor into the DoD decision making.

It seems the consensus out there is people expect Epic to win the DoD contract. If that happens, the Siemens acquisition could become even more interesting for Cerner. It’s a very likely reality that whoever gets the DoD contract will lose some potential clients due to concerns about capacity. If Epic or Cerner get the DoD contract, then it’s possible that these capacity concerns will move them down a notch in people’s EHR selection process. This is a situation where Cerner will benefit from having connections to all of these Soarian customers. As I posted previously, it might be best for Epic not to win the DoD contract.

Are there other ways that Cerner’s acquisition of Siemens impacts the DoD EHR bid?

August 7, 2014 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 14 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John 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 and Google Plus.

EHR Consolidation Continues as Cerner Acquires Siemens Soarian

The big news that had been rumored for a while was that Cerner was going to acquire the Siemens Health Services product line including Soarian. The rumor became reality as the acquisition was announced today. You can see the investor slide deck they published here. Most notably, Cerner has committed to supporting the Siemens Soarian product line for a decade:

Following the acquisition, support for Siemens Health Services core platforms will remain in place. Current implementations will continue, and Cerner plans to support and advance the Soarian platform for at least the next decade.

Of course, it’s one thing to suggest this in a press release. It’s another thing to actually do it in practice. However, it was smart of them to announce this approach to allay the fears of Soarian customers. If enough Soarian customers move over to Cerner, then you can be sure the announcement to sunset Soarian will happen. That’s a feature of EHR acquisition and consolidation. It’s just too expensive, especially in this regulatory environment, to maintain two code bases which perform the same functions.

These stats about the combined organizations are quite interesting:

  • 20,000 associates in more than 30 countries
  • 18,000 client facilities, including some of the largest health care organizations in their respective countries
  • $4.5 billion of annual revenue
  • $650 million of annual R&D investment

The last one is interesting given yesterday’s post on R&D companies. However, I think one of the key numbers there is the associates in 30 countries. Siemens Health Services has approximately 5,000 client facilities in over 40 countries including a strong presence in Germany, Sweden, Austria, Spain, Norway, and the Netherlands. You can be sure that a large part of this acquisition by Cerner is being able to go after the global market. There’s a huge opportunity in many countries that haven’t had billions of dollars falsely stimulating the market.

What I found particularly interesting on the investor call about the deal was Siemens efforts to take care of their existing customers. I’d describe it as finding a soft landing for their customers. You can understand why this is important. Many of those Soarian customers are still Siemens customers in other parts of the business like radiology. Siemens no doubt didn’t want to kill their other business by selling Siemens Health Services.

We’ll see what comes of the Siemens and Cerner $100 million innovation budget. If you look at the wording it says stuff like up to $100 million budget. Plus, these two companies are going to have to work together on some projects regardless. Cerner needs the data Siemens has and Siemens will need to get the data into Cerner. Will anything beyond that really occur, I’m not as optimistic.

I did find Neil Patterson’s comments on the post-Meaningful Use era interesting. I’d love to explore more of what he sees in that future. One person described it as a move from documenting the care given to a patient to technology that drives the care given a patient.

I’m not sure hospital execs should be that excited about this acquisition. It takes out another competitor from keeping EHR vendors honest. This really is getting down to a two horse race between Cerner and Epic and I think this acquisition will put Cerner just ahead of Epic in market share.

I liked this tweet from Hospital CIO Will Weider about the acquisition:

August 5, 2014 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 14 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John 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 and Google Plus.

R&D Budget or Your Company Is R&D

Today I realized a good way to describe the difference between a large company and a startup company. I was reading an interview with a very large healthcare IT company and whenever he was asked about the innovations they’re working on in healthcare IT he referred to their R&D budget or their R&D efforts. As more of a startup person myself, I found the mentality interesting to compare against a startup company. At a startup company, your entire company is focused on innovating.

I find the approach so uniquely different and explains why many hospital organizations don’t want to work with startup companies. These hospital organizations are afraid that the startup company won’t deliver the results they expect. I get it. It’s much easier to “choose IBM” versus go with a newer startup company when working on a project. I think we regularly underestimate the value of a great brand.

I’ve seen the same. While my blog network has deep reach into the healthcare IT community, I’ve seen companies fawn all over Forbes bloggers (not to be confused with Forbes journalists) mostly because they saw the Forbes brand. The power of a great brand is tremendous. In fact, the power of a known brand (even if it’s not a great brand) is extremely powerful.

What I find most ironic though is that most hospitals love being part of the “innovation” programs these large companies put together. You’ve all seen the press releases that are put out between large company A and hospital B. Why are hospitals so interested in being part of large health IT companies R&D efforts and yet they’re scared of health IT startups?

I’m sure some would make the case that the large health IT companies will be around for a while and the health IT startup companies might not be. This is true, but what’s to keep a large health IT company from cutting their R&D budget and killing your innovation program? Nothing. Isn’t that the same thing as a health IT startup company closing up shop? In fact, I’d argue that the later might be better for you. If the health IT startup company was on to something and just ran out of funding, you could buy the whole startup company and continue your efforts. Try doing that with a shutdown innovation program at a large company.

I think healthcare would really benefit from being more open to startup innovations. I realize that the politics of a hospital system make it tough. However, with some smart planning and thought, we could find ways to make working with health IT startups easier. Our hospitals and healthcare in general would really benefit from doing so.

August 4, 2014 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 14 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John 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 and Google Plus.

Study Says Overcharging by the Hospital Might Be Overstated

Despite concerns first raised a few years ago, hospitals do not seem to be abusing their electronic data systems to generate bigger bills and boost their income — at least according to authors of a large study released Tuesday. Other leaders in the field say the jury’s still out.

The concern over possible misuse of records grabbed headlines in 2012 after an investigation by the Center for Public Integrity and the New York Times found that some hospitals using electronic records were billing Medicare for significantly more than hospitals that still used paper records.

After the stories appeared, the Departments of Justice and Health and Human Services sent hospitals a strongly worded letter warning them against misusing the ease of electronic forms to pad their bills.

Source

What an interesting study. I especially like the part of the article where they suggest that hospitals aren’t charging more for their services because of EHR because the hospitals had already been maximizing their revenue for a long time before EHR. It’s a fine point that’s worthy of consideration. I don’t think it’s as true in some ambulatory practices, but in the hospital world they’d made a lot of efforts to maximize their revenue even without EHR.

One angle the article above doesn’t cover is that many people were suggesting that this EHR over billing of services was fraud on the part of these organizations. I’ve always thought that was ridiculous. Sure, fraud exists and is facilitated by technology in many cases. However, what the majority of hospitals are doing to maximize revenue isn’t anywhere close to fraud. The problem is that Medicare and other payers have been able to avoid paying for services that were rendered, but never billed. If EHR has increased claims (and this study suggests it hasn’t), then I’d submit it was because hospitals are finally charging for all of the services their rendering.

What do you think? Does EHR increase the cost of healthcare by charging for all of the services provided? Does EHR facilitate fraudulent claims?

August 1, 2014 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 14 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John 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 and Google Plus.

5 Year Projected Growth Rate for Healthcare Analytics Market

iHealthBeat recently reported some interesting data on the Healthcare Analytics market growth:

The market for health care analytics is projected to increase at a 25% compound annual growth rate between 2014 and 2019,according to a new report from Research and Markets, Health IT Analytics reports (Bresnick,  Health IT Analytics, 7/24).

If anything, I’d suggest that this is a conservative growth rate for the Healthcare Analytics market. If you go into any hospital, health analytics is one of the only thing they’re spending new money on.

In the same article linked above they suggested these companies as the major players:

  • Inovalon
  • LexisNexis
  • McKesson
  • Oracle
  • Predixion
  • SAS
  • Truven Health Analytics
  • Verisk Health

I agree that these companies will be involved, but I’m more interested in the newer Health Analytics companies that are entering and going to enter the market. We’ll see how that plays out since it seems like pretty much every healthcare IT company is creating some sort of health analytics offering.

What are your hospital’s healthcare analytics plans?

July 30, 2014 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 14 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John 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 and Google Plus.

Security Issues of Paper Medical Records and Faxes

I loved this tweet. It’s a great reminder that far too often when we look at EHR Implementations we compare it against a world that is 100% and 100% efficient. This is an unfair comparison. Instead of comparing EHR against the perfect world, we need to compare EHR to the alternative. In most cases, we should be comparing the EHR world to the paper chart world. Doing so makes all the difference.

I’ve written previously about this concept when I wrote, It’s Not Like Paper Charts Were Fast. In that instance I was comparing the speed of EHR documentation with paper chart documentation. They’re much closer than we like to remember. In fact, in many cases EHR documentation is much faster than paper charts. Although, critics of EHR prefer to compare the speed of EHR to an automatic documentation world. Unfortunately, the automatic documentation world is still a fantasy. Hopefully that dream eventually comes true.

As the tweet above mentions, the same could be applied to security. No doubt there are security challenges in an EHR world. However, there were and are security challenges with paper charts and faxes as well. For example, there was no good way to audit who accessed a paper chart. That’s not an issue in an EHR world. I could go on and on, but you get the idea.

When evaluating EHR, let’s always remember to compare it to the alternative and not the perfect world that really doesn’t exist.

July 28, 2014 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 14 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John 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 and Google Plus.

Do Consulting Firms Increase or Decrease Your Bottom Line?

I’ve been learning a lot more about the Health IT and EHR consulting industry as I work with many of them who post jobs on our Health IT job board. In fact, I’ve written previously asking the question, “Are Most EHR Consulting Companies Really Staffing Companies?” The reality is that many of the so called consulting companies out there are much more like staffing companies than they are consultants. It’s just a lot more sexy to call someone a consultant than a temporary staff member. Plus, it’s hard to charge the rates they do as a temporary staff member, but a consultant seems to justify the higher rates.

I should make clear that there’s nothing wrong with this approach to business. Many healthcare organizations need the temporary staff that consulting companies provide. However, it has diluted the term consulting quite a bit in the process.

If you’re looking for a good way to know what type of consulting company you’re working with consider this question: Does the Consulting Firm Increase or Decrease Your Bottom Line?

The reality is that consultants are expensive. It costs money to get someone to come in and share their time and expertise with you. Plus, when you look at how many “billable hours” a consultant has available to them with travel, finding business, etc, they have to charge a premium to make up that time. However, just because something costs money doesn’t mean that it’s not worth it.

If I told you that you could spend $50,000 and you would save $200,000, every one of you would do it. If I asked you if you’d spend $100,000 in order to generate $500,000 in increased revenue you’d all be interested. This is the model a great consultant provides. Sure, the numbers are projections of value and that what makes it difficult. Although, many consultants are hired these days to complete specific tasks as opposed to provide ROI. That’s how you can quickly recognize the difference between a true consultant and a temporary staff.

The challenge consulting companies face is that it’s much easier to prove that tasks were complete. It’s much harder to really impact a company’s bottom line.

July 25, 2014 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 14 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John 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 and Google Plus.

HIPAA Compliant Texting

We’re quickly seeing HIPAA compliant texting as a standard in healthcare. Certainly there are some organizations that are resisting, but I fear for those healthcare organizations that are letting SMS run rampant in their organization. SMS is not HIPAA compliant and so that’s a real risk for an organization that allows it to go on. However, I’m seeing organizations across the country adopting a secure text messaging solution.

I’ve often said that the best way to solve a problem is to make doing the right thing easy or better than doing the wrong thing. This can easily be applied to HIPAA compliant texting. I outlined 11 reasons why a secure text message solution was better than SMS before and one of those reasons wasn’t the fear of HIPAA. Can someone really argue that SMS is better or acceptable?

Besides the argument that secure text messaging is dramatically better than SMS, the great part is that a plethora of secure text messaging solutions are available that are just as easy as SMS. I’m personally bias to docBeat since I’m an advisor to them and they’ve created a really great product. However, there are lots of other dedicated secure messaging companies including TigerText, docHalo, qliqSoft, and many more. Plus, that doesn’t even include large companies like Imprivata who offer Cortext and even athenahealth’s Epocrates has secure text messaging built into their product.

The day will soon come when a hospital gets hit with a HIPAA violation (possibly during a HIPAA audit) and insecure SMS will be the culprit. Considering the advancements in secure text messaging options, hospitals won’t have anywhere to hide. It’s very clear that there are HIPAA compliant options available and so I can’t imagine they’ll be lenient with organizations that aren’t doing something about it.

I’d love to hear your experience with HIPAA compliant text messaging. Do you use it in your hospital? What do you love or hate about it? Are you still using SMS?

July 23, 2014 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 14 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John 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 and Google Plus.

Do Hospital Leadership Pay Attention to Healthcare Startups?

Today I got the press release announcing the 2014 class of startup companies that will be participating in the New York Digital Health Accelerator (NYDHA) program. I’ll put the list of companies in the 2014 class at the bottom of this post for those that are interested.

While I find all of the various healthcare IT incubator/accelerator programs quite interesting, I wonder how many hospital executives are really paying attention to what’s happening with these companies. My gut feeling tells me that very few of them are watching it at all. The reality is that most of them are so busy with the operational aspects of their business that they don’t have time to look at the latest batch of healthcare IT startup companies. Although, I think this is a mistake since they could learn a lot about trends in the industry by looking at these companies.

However, I think there’s a deeper issue here than them just making the time to look at these companies. The larger issue is that most of these health systems write off the idea of working with these “startup” companies without even taking a look at what they’re doing. I think that this is part of the industrialized thinking that we need to change in healthcare to really improve.

Let’s also not confuse what I’m describing with being wreckless. We have a special duty in healthcare to take care of patients in the best way possible. I think working with healthcare IT startup companies helps us fulfill that duty. Sadly, I think many executives don’t see it that way.

What I think could help these executives is to have a forum where they could easily sort through the latest and greatest of what’s happening. Unfortunately, I don’t think anyone’s created that forum yet.

2014 NYDHA Healthcare Startup Companies
AllazoHealth addresses the problem of medication non-adherence by leveraging existing member data to anticipate which patients will not take their medications to predict how best to effectively influence each patient to take their medication.  (www.allazohealth.com)

Clinigence’s solution—built around clinical data analytics, sematic data aggregation, and predictive modeling—provides real-time clinically-based reports about care gaps which help healthcare providers improve outcomes to proactively address the shift to value-based models and the growing demand for quality patient care. (www.clinigence.com)

Covertix helps healthcare organizations protect and control confidential data shared between patients, healthcare professionals, hospital networks and third party vendors to improve their coordination of care.  (www.covertix.com)

iQuartic’s technology merges, structures and mines EHR, PBM, claims and mHealth data for analytics that inform and benchmark care based on outcomes/best practices and adjusted population.  (www.iquartic.com)

Noom makes software to help people live healthier.  For consumers, the Noom Weight Loss Coach, with over 11 million downloads, coaches users on nutrition and exercise. Noom’s different patient engagement apps are based on its consumer-facing app. (www.noom.com).

Quality Reviews empowers patients through their flagship product, RateMyHospital.com, a real-time, mobile patient feedback tool.  (www.q-reviews.com) 

Sense Health uses mobile technology to build personal connections between providers and high-risk Medicaid patients to improve outcomes and the quality of care.  (www.sensehealth.com)

July 22, 2014 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 14 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John 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 and Google Plus.

Reporting EHR Medical Errors

Tom Hubbard brings up some interesting points about EHR medical errors. He suggests that nobody routinely reports EHR medical errors. I would ask if anyone reports EHR medical errors. Where would they report the EHR medical errors? There’s no real governing body for EHR medical errors. Sure, we could make up some places.

A number of years ago I remember some organization stood itself up to be a place where doctors could report errors they found in an EHR software. Of course, this brings up an interesting question. When is the error a user error and when is the error an EHR system error? That gets pretty complex and I’m sure some expert witnesses are going to make a killing testifying for and against the EHR companies. Unfortunately (or fortunately depending on how you look at it), I’m not interested in that kind of work. I prefer building and supporting cool things as opposed to tearing things down.

What do you think of EHR medical errors? Who should have oversight of these problems? Where and how should something be reported? Is this much ado about nothing? Or should we be making a bigger deal out of this since it’s currently just being swept under the rug and ignored?

July 21, 2014 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 15 blogs containing almost 6000 articles with John having written over 3000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 14 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John 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 and Google Plus.