PWC in the US recently put out their “Top health industry issues of 2011” report. Although our systems are very different, Canadians will be impacted.
The rush is on!
Expected increased spending in the US on Health IT from 2011 to 2015 is $36 Billion, with at least $20B of that coming from the Gov’t incentive program. The USA has put in place a carrot and a stick approach. This is different than the approach used by Canada Health Infoway, in which organizations are only reimbursed once they can demonstrate they have effectively implemented. The USA health care organizations will receive incentives through 2015 to implement interoperable EHRs and show “meaningful” use. Following the incentives comes the stick or penalty for non-compliance. Over 66% of the CIOs surveyed in US Healthcare see a need to increase their staffing levels, primarily to ensure that Gov’t incentives available through 2015 are secured and used effectively, before penalties for non- compliance kick in.
What will this mean to Canada, a small market (less population than the state of California)
a) less vendor attention and more limited access to US resources, as the large US based software companies focus on the lucrative situation at home.
b) our staff maybe attracted to the US for higher wages and more challenging assignments. There are obviously differing views as to whether Canadians would go south, but with significantly lower projected spending in the next few years especially in Ontario due to high Gov’t deficits, and onerous procurement rules skilled professionals may well leave, just as doctors and nurses did in the 1990’s.
PWC mixes into the discussion Health Care IT trends were 2 very interesting Healtrh Care Trends:
Limited Consumer Demand
Similar to Canada, consumers are not demanding that they have Electronic records and/or have access to their own personal health record. PWC doesn’t feel that Health Care reform and thus lower costs will occur until consumers are engaged and willing to be accountable for managing and improving their own health. Canada is not different in this respect. But ‘Meaningful Use” requires hospitals and physicians to provide patients with an electronic copy of their health record on request. The theory of build and they will come may work, but significant consumer education is required to take advantage of this huge investment.
Generic Drugs
One may wonder why the introduction of more generic drugs is seen as a huge plus when taking about Health Care IT. Between 2010 and 2014, 50% of the drugs in the USA currently protected by patents will become available in their generic format. The US Health care sees this as a huge savings. In 2011 alone $26Billion of annual drugs costs goes off patent. If savings are 50%, the costs reduction is $13 Billion. So do we care? Yes, I think we do. Funding of Health Care is an issue for most provinces as they struggle with large deficits. Have the Ministries of Health factored in these expected decreased costs, or can this be a potential source of funds to help implement electronic records in Canada.
Bottom line:
We have a solid foundation with investment from Canada Health Infoway, the Provinces and the providers. We must find ways to continue investing in the Electronic Health Record.
Resources:
Find the PWC report online HERE!
