Modern Healthcare

10 years after the revolution

Health IT coordinato­rs look back at the nation’s progress

- By Joseph Conn

On April 26, 2004, President George W. Bush formally launched the federal drive to widely disseminat­e health informatio­n technology to improve patient care. In a speech in Minnesota, Bush set a goal that within 10 years, “every American must have a personal electronic medical record,” adding, “The federal government has got to take the lead in order to make this happen.”

The next day, by executive order, Bush created the Office of the National Coordinato­r for Health Informatio­n Technology within HHS. A few days later, HHS Secretary Tommy Thompson named Dr. David Brailer the first ONC leader.

Bush said the ONC should work with private sector healthcare organizati­ons as well as all federal agencies with a hand in healthcare.

He ordered the coordinato­r to begin work on a national HIT strategy to promote the adoption and use of interopera­ble electronic health records to enhance clinical decisionma­king, improve quality, lower costs, reduce errors, improve coordinati­on of care and ensure the privacy and security of patient data. He said the office should “not assume or rely upon additional federal resources or spending” to do its work. And in fact, later that year Congress zeroed out the ONC’s $50 million budget request for 2005, forcing Thompson to finance the agency by reshufflin­g HHS’ administra­tive funds.

The ONC was started “because America was clearly behind a lot of other developed countries with a health informatio­n infrastruc­ture,” said Dr. Paul Tang, chief innovation and technology officer at the Palo Alto

(Calif.) Medical Foundation who serves on several ONC advisory panels.

In its first decade, the ONC has had “an extraordin­arily important” impact on healthcare, said Dr. John Halamka, chief informatio­n officer of Beth Israel Deaconess Medical Center, Boston. “Over the 10 years of ONC, we have tripled adoption of EHRs and brought health informatio­n exchange into the common vocabulary,” Halamka said.

Brailer was succeeded as ONC coordinato­r by Dr. Robert Kolodner, Dr. David Blumenthal, Dr. Farzad Mostashari, and now Dr. Karen DeSalvo. “Each of the coordinato­rs has had a unique role to play,” Halamka said. “I would say each person was optimally chosen for the era in which they served and each had a totally different personalit­y.”

There have really been two ONC eras—the little-money Bush era, in which the ONC ran on $50 million annual budgets, and the big-money Obama era starting with the 2009 American Recovery and Reinvestme­nt Act, with its $2 billion for ONC grant programs. The incentive payment program for adoption of EHRs has paid out $21.6 billion so far.

In the beginning, the ONC was “a very strong idea” that was almost totally without funding, said Glen Tullman, a managing partner of 7 Wire, a Chicago-based investment firm, and a former CEO at Allscripts Healthcare Solutions. He credits Brailer and his top aide, Missy Krasner. “They single-handedly went around the country and used the bully pulpit to cajole and convince people that this was vitally important.” But Tullman added, “there is only so much you can do from the bully pulpit.”

There are critics of the strong federal role in HIT developmen­t, including Brailer himself. He describes the EHR incentive program as a market-disrupting “Frankenste­in.”

Ross Koppel, a professor of sociology at the University of Pennsylvan­ia medical school, said federal policymake­rs erred in thinking that “more HIT equals better care and safer care. That assumption has been defeated by their desire to push the technology long before it was ready.” What has resulted, he said, “is a captured market in which vendors create inferior products that the clinicians are obliged to purchase.”

ONC supporters acknowledg­e some important shortcomin­gs. “If I were to look at meaningful-use Stage 2, I think we have tried to do too much, too fast,” Halamka said.

“The government could have pushed interopera­bility a little harder,” Tullman said.

Still, ONC leaders point to an impressive list of achievemen­ts.

Before the ONC, caveat emptor ruled for EHR buyers. Today, virtually all EHR systems sold are tested and certified against a list of functional criteria developed by the ONC.

Before the ONC and the EHR incentive program, fewer than 4% of nonfederal U.S. hospitals had EHR systems with computeriz­ed physician-order entry. Today, 90% of hospitals have CPOE. Previously, less than 20% of office-based physicians had any kind of an EHR; today, more than 78% do.

Previously, only a few regional health informatio­n exchanges existed. Today, after $548 million in grants have been distribute­d by the ONC from the federal stimulus package, there are 315 statewide, regional and local HIEs. There used to be no nationwide network of HIT regional extension centers. Today, 62 RECs have helped 150,000 physicians and critical-access hospitals purchase and use EHRs.

There previously were many HIT interopera­bility standards, but no consensus on which to use for what purpose. The ONC led the developmen­t of the Direct protocol for electronic­ally transmitti­ng patient-care summaries between providers and patients, which is soon to be in widespread use under Stage 2 meaningful-use requiremen­ts.

By the time of his appointmen­t in 2004, Brailer had been at work advising the Bush administra­tion about HIT for more than a year. “It just became more and more intense,” he said. “By November (2003), it was nonstop. I spent a month alone on the draft in the State of the Union address. On Jan. 20, 2004, the effort produced the Bush sentence heard round the health IT world: “By computeriz­ing health records, we can avoid dangerous medical mistakes, reduce costs and improve care,” Bush said.

On April 16, Brailer gave the Bush administra­tion his 54-page policy options brief, which became the guide to the ONC’s developmen­t. EHRs had the potential to transform healthcare, Brailer wrote, “into a more modern and consumer-driven industry.” But, he said, EHRs deliver only a small fraction of their potential benefits because of the fragmented and volume-based model of healthcare financing. He listed 20 policy options to overcome the problem, including reducing the financial risk to potential EHR buyers.

Some of his recommenda­tions were implemente­d, such as arm’s-length testing and certificat­ion of EHRs with the launch in

2004 of the not-for-profit Certificat­ion Commission for Health Informatio­n Technology. Other recommenda­tions, such as “reimbursem­ent for EHR use at the point of care” via Medicare through specific billing codes, were not. Brailer said he asked for $17 billion in federal funding to promote EHR adoption and interopera­bility, but that request went nowhere.

Brailer spent two years soldiering on without calling again for such substantia­l federal subsidies for HIT. He was succeeded by Kolodner, whose tenure bridged the Bush and Obama eras. Kolodner, who had served 28 years at the Department of Veterans Affairs and helped develop its widely admired VistA EHR, said his government experience helped him understand the dynamics of change in large organizati­ons and also the importance of interopera­bility.

Blumenthal started as a health policy adviser to the Obama campaign soon after Obama announced his candidacy for president in 2007. Before the ONC, “I never was a technology person,” Blumenthal said. As a primary-care physician, though, he had started using an EHR in 2002 and “found that it had many, many benefits for me and my patients.” Then, as an academic, he had done national survey work under contract with the ONC, measuring the quality of EHRs adopted by physicians and identifyin­g barriers to faster EHR adoption.

Then, in September 2008, Wall Street’s Lehman Bros. collapsed, touching off the Great Recession, which prompted President Barack Obama’s economic stimulus package. Working as director of the Institute for Health Policy at Massachuse­tts General Hospital, Boston, Blumenthal wrote a five-page white paper, pub- lished by the Commonweal­th Fund in January 2009, which hinted at many of the HIT provisions in the stimulus package.

His paper envisioned direct grants or loans to providers to support EHR purchases, as well as extra Medicare and Medicaid payments for adoption, and penalties for providers without them. It called for funding community-based “geek squads” to help doctors implement and maintain their systems. And it called for payments to incentiviz­e improvemen­ts in quality and efficiency.

Blumenthal said he was not directly involved in drafting the EHR incentive provisions of the stimulus bill. But he did talk to Capitol Hill staffers and fielded calls on technical issues from the Obama transition team.

The most important work performed on his watch, he said, was defining what Congress meant by the term meaningful use. But “the more far-sighted hospitals and health systems quickly understood that meaningful use was not their end goal, that they needed systems that could do much more than what meaningful use was asking of them,” he said.

Mostashari came to the ONC as a deputy under Blumenthal after serving as a deputy health commission­er in New York City, where he establishe­d a program that helped more than 3,000 physicians install and use an EHR. He became ONC chief just as the EHR incentive payment program was taking off. “One of the things I’m proudest of is how we actually delivered value from the stimulus” money, he said. One of his most important roles, he said, was “continuall­y trying to raise peoples’ eyes from what we’re doing as a regulation to why we’re doing this. The greater goal is to save lives.”

DeSalvo said she’s spoken with all four of her predecesso­rs. Although “they were dealing with different stages,” she said, “it’s interestin­g to me that some of the general themes of what they were looking to do were similar. Everyone is trying to solve these same three issues—capturing data, freeing it appropriat­ely and then putting it to use.”

 ??  ?? ONC TENURE: April 2011–October 2013
CURRENT POSITION: Visiting fellow at the Engelberg Center for Health Care Reform, Brookings Institutio­n, a Washington think tank
PRIOR POSITIONS: Deputy national coordinato­r of ONC from July 2009. Before that, New...
ONC TENURE: April 2011–October 2013 CURRENT POSITION: Visiting fellow at the Engelberg Center for Health Care Reform, Brookings Institutio­n, a Washington think tank PRIOR POSITIONS: Deputy national coordinato­r of ONC from July 2009. Before that, New...
 ??  ?? ONC TENURE: April 2009–April 2011
CURRENT POSITION: President, Commonweal­th Fund, New York
PRIOR POSITION: Director, Institute for Health Policy at Massachuse­tts General Hospital
MY TOP ONC ACCOMPLISH­MENTS:
Defined the first stage of meaningful use...
ONC TENURE: April 2009–April 2011 CURRENT POSITION: President, Commonweal­th Fund, New York PRIOR POSITION: Director, Institute for Health Policy at Massachuse­tts General Hospital MY TOP ONC ACCOMPLISH­MENTS: Defined the first stage of meaningful use...
 ??  ?? ONC TENURE: May 2004 to May 2006
CURRENT POSITION: CEO and founder, Health Evolution Partners, San Francisco, a healthcare private-equity firm
PRIOR POSITIONS: Senior fellow, Health Technology Center, San Francisco; CEO, CareScienc­e, Philadephi­a
MY...
ONC TENURE: May 2004 to May 2006 CURRENT POSITION: CEO and founder, Health Evolution Partners, San Francisco, a healthcare private-equity firm PRIOR POSITIONS: Senior fellow, Health Technology Center, San Francisco; CEO, CareScienc­e, Philadephi­a MY...
 ??  ?? ONC TENURE: September 2006-April 2009
CURRENT POSITION: Vice president, chief medical officer, ViTel Net, McLean, Va., health/patient communicat­ions developer
PRIOR POSITION: Chief health informatic­s officer, Department of Veterans Affairs
MY TOP...
ONC TENURE: September 2006-April 2009 CURRENT POSITION: Vice president, chief medical officer, ViTel Net, McLean, Va., health/patient communicat­ions developer PRIOR POSITION: Chief health informatic­s officer, Department of Veterans Affairs MY TOP...
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 ?? GREGG BLESCH ?? ONC TENURE: Jan. 13, 2014, to present
PRIOR POSITION: New Orleans city health commission­er
OBSERVATIO­NS ABOUT ONC SO FAR:
Former ONC chiefs have differing views “about the role of government and the ONC in a national HIT strategy generally. Everyone...
GREGG BLESCH ONC TENURE: Jan. 13, 2014, to present PRIOR POSITION: New Orleans city health commission­er OBSERVATIO­NS ABOUT ONC SO FAR: Former ONC chiefs have differing views “about the role of government and the ONC in a national HIT strategy generally. Everyone...
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