Sunday, April 10, 2011

The Evolution Of Integrated Health Care Delivery Systems And The Singularity

If one had to design a health care system that would seem doomed to failure one might start with one in which the providers of care were fragmented, independent and driven through the reimbursement system to provide ever more services that generate higher income on a fee for service basis. The system would provide care to patients who were isolated from the economic costs of the services by third party payments, through employer funded insurance coverage. Third party payers would make their money through reducing premium payouts, by simply delaying or not paying out what they contracted to provide or extorting deep provider discounts in exchange for directed volume. The approach to care of individual patients would be ad hoc, without significant oversight. Severely ill patients would be passed back and forth by all providers like the black queen of spades in a deck of cards. Bad debts would be written off as "charity care." Insurance premiums would rise faster than the world's oceans in global warming. Sound familiar?

Unfortunately, in an contentious and polarized political democracy little can be done to re-design an antiquated, inefficient, ineffective, and bankrupting cowboy system of health care delivery in a focused, comprehensive way that will likely make a real difference. There are just too many moving parts and special interests involved. There is, however, an incremental change underway as a result of the recent health care reform efforts that have the potential to morph the system into a paradigm that makes more practical sense. Medicare will be providing contracts with Accountable Care Organizations that will have to become clinically integrated systems of efficient hospitals and care providers in order to obtain adequate reimbursement. Expect to see these new systems expanding in the private sector as well.

The government's push toward implementation of global electronic medical records systems will be key to the development of data driven systems competing not only for financial gain, but also for quality in performance and outcomes. Data capability inaugurates performance accountability in managing patient care. With the advent of reliable data there will be more and more focus on evidence based medicine, what works and what does not and we will be moving from a largely intuitive approach to an empirical design in health care delivery. Outliers will be reviewed, evaluated and addressed. The focus will be on system based accountability in providing the most effective method of care and the most reasonable price. This can only occur if hospitals and care providers are focused on and are compensated for the delivery of health not the delivery of care. Look to the rise and advance of fully integrated health care systems compensated in global fixed fees, and view the decay and death of fee for service medicine.

The pace of technology development in the form of electronic medical records, smart electronic medical devices and in communication, storage and cloud computer functioning, augers the potential for what what Ray Kurzweil describes as the "Singularity."

What then is the singularity? It's a future period during which the pace of technological change will be so rapid, its impact so deep, that human life will be irreversibly transformed. Although neither utopian nor dystopian, this epoch will transform concepts that we rely on to give meaning to our lives from our business models to the cycle of human life, including death itself.

Does the United States Healthcare System Need an Overhaul?

Healthcare is undoubtedly one of the United States' biggest challenges today. Having been declared "broken" by experts over ten years ago, the system has still not shown any improvements. Supposed "fixes" promised by managed care have not surfaced. Instead, health insurance premiums are rising, hassles for patients and physicians continue, and more than 45 million Americans are uninsured.

If the challenges with healthcare that the United States faces are not met swiftly and wisely, the current problems will worsen and new challenges will arise. Even considering that new technology, such as online medical consultations, will increase efficiency, the cost of new tests and treatments are projected to outweigh the savings. As physicians and online doctors get better at treating ailments and illnesses, they will in turn lengthen patients' lives, thereby increasing the number of people requiring medical care.

Additionally, as costs rise, many employers will not be able to handle providing healthcare benefits to their employees. This is just one contributing factor to the growing number of uninsured citizens.

Is Healthcare Reform in Our Near Future?

President Obama has plans in motion to ensure each and every American has access to high quality health care, deeming it "one of the most important challenges of our time." He stated that the number of uninsured Americans is growing, premiums are skyrocketing, and an increasing number of people are being denied coverage every day. In addition, President Obama believes that an improved healthcare system - including one that supports the use of telemedicine and online doctor consultations - is also essential to rebuilding the U.S. economy, in that an improved system will benefit people and businesses - not just insurance and pharmaceutical companies.

According to Darrell M. West, Vice President, Governance Studies at Brookings Institution, "the biggest obstacle to health care reform is fear of the unknown. Anytime you make fundamental changes in the system, there is going to be anxiety from doctors worried about reimbursement levels, patients concerned over access to care, insurers about market competition, and hospitals about cost structures. In this situation of complex proposals and unknowable consequences, it is easy to play to people's fears and scare them into resisting change. What President Obama has to do is persuade people that diving into the unknown future is less risky than the current status quo. If he can overcome the fear hurdle, he will get health care reform."

We Have Evolved...It's Time for Healthcare to Evolve, Too

The way of approaching healthcare in the United States has become outdated. With the rapidly expanding array of technology that is available to the people of the United States, it is no wonder why the way research is done has changed; and the ways in which people communicate has also changed. So what about change in the healthcare system? It is due time for physicians and other healthcare providers to evolve with the times and incorporate telehealth services, such as online medical consultations and online prescriptions, into their practices.

Datamonitor has predicted that the global telehealth market is expected to exceed $8 billion by the year 2012. Telemedicine (often used synonymously with telehealth) is the use of medical information being exchanged from one to another via electronic communication, whether it is the internet or phone. This exchanged medical information in the form of online doctor consultations and printable doctors' excuses online in turn is used to improve the patient's health or direct them in the right path.

Commonly referred to as online medical consultation services, telemedicine is not different from the actual practice of medicine; it is just the application of the standard, accepted practice of medicine, to electronic communication, thus making it more widely accessible and easier to obtain by the general public. With technology at everyone's fingertips, it is no wonder that a rapidly increasing number of people are turning to the internet for online doctor consultations and printable doctors' excuses. To date, approximately 36 million Americans have already been treated by telemedicine through online doctor consultations and/or prescriptions. A survey showed that over 70% of patients indicate that they are willing to try online doctor consultations and online prescription services rather than going into an office when they have a minor illness.

The American Medical Association (AMA) has reported that possibly 70% of all doctors visits are for information or a consultation of sorts that could easily be handled over a phone. All of these visits cost medical providers and patients alike for the unnecessary trips. It has been estimated that as much as $300 billion of health care costs are wasteful and unnecessary, thus resulting in higher insurance costs for groups and individuals alike.

Are These Goals Within United States' Reach?

The three targeted goals when it comes to improving the U.S. healthcare system according to President Obama are the following:

o Reform the healthcare system;
o Promote scientific and technological advancements; and
o Improve preventative care

With the rapid advancement of telemedicine, or online doctor consultation and online prescription services, the aforementioned goals are most definitely within our reach.

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