IBM Viewpoint: Reforming Healthcare: A Key Emerging Market For The 21st Century: "

[March 25, 2006] By even the most cursory analysis, America is obviously in the throes of a real healthcare crisis; a health care infra-structure that is in need of a whole new model . According tho this WebWire®release, IBM has positioned itself to provide significant impetus toward the transformation of America’s healthcare industry by spearheading a groundbreaking consortium of healthcare and health information technology organizations focused to develop a 21st century healthcare network. These efforts intend to address a dramatic flaw in a healthcare system plagued by underperformance according to worldwide comparison. More than 100,000 Americans die each year from preventable medical errors,adding up to up to more fatalities than from AIDS, homicides, and traffic accidents combined, according to this WebWire® release. "Lifesaving medical advances have not come accompanied by improvements in the way members of the healthcare ecosystem (from public and private payers, to providers, researchers and consumers) use IT to work with one another. As a result, the "system," such as it is, functions much like a fragmented cottage industry". A well documented recent study by the Rand Corporation supports this and reports, as well, that a modern healthcare IT infrastructure could save the industry and consumers up to $165 billion per year. Saving lives and saving money could be an "infectious" idea whose time has very much come to an ailing American health care system. Read on..... [globalEyeNews.brief.health insurance]

Press Release: WebWire®

IBM Viewpoint: Reforming Healthcare: A Key Emerging Market For The 21st Century



Armonk, NY - 07 Feb 2006: Healthcare is becoming as important to the vitality of businesses, governments and nations as it is to the well being of individuals. Soaring healthcare bills add $1,500 to the cost of every car made by General Motors, for example, compared to $200 per car for the company’s nearest foreign competitorIn fact, higher healthcare spending does not guarantee better delivery or outcomes. America spends 16 percent of its GDP on healthcare - the highest in the world - but ranks only 37th in the overall
performance of its healthcare system by the World Health Organization. Moreover, more than 100,000 Americans die each year from preventable medical errors. This adds up to more fatalities than from AIDS, homicides, and traffic accidents combined. Meanwhile, 45 million Americans have no healthcare insurance and 15 million are under-insured.

Many factors contribute to this healthcare crisis, from changing demographics to the spread of "diseases of affluence" and chronic illnesses. But perhaps the most treatable disorder is underinvestment in healthcare information technology. Lifesaving medical advances have not come accompanied by improvements in the way members of the healthcare ecosystem (from public and private payers, to providers, researchers and consumers) use IT to work with one another. As a result, the "system," such as it is, functions much like a fragmented cottage industry. This IT failure has been well documented in a recent study by the Rand Corporation, which concludes that a modern healthcare IT infrastructure could save up to$165 billion per year by reducing hospital stays, encouraging tests and early treatment, and cutting administrative costs.(1)

GROWTH AHEAD

The Rand study is part of a growing consensus that the healthcare crisis has reached a tipping point. Governments, businesses and patients can no longer tolerate the system’s spiraling costs. There is broad agreement that building a modern information infrastructure that ties together the healthcare ecosystem is the most readily available means to control healthcare inflation and improve delivery.

At the moment, healthcare IT spending averages just two-to-three percent of overall healthcare spending. This compares with as much as 12-15 percent in other information-intensive industries, such as financial services. Analysts forecast that, as countries address this massive underinvestment, healthcare IT spending will grow at a faster pace than overall IT spending. Gartner estimates.....Full Story>>>