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Health Record Banks: Business Considerations
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WCIT 2014
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William A. Yasnoff, MD, PhD, FACMI WCIT 2014, Guadalajara, Mexico
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Health Record Banks: Business Considerations
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Health Record Banks:
Business Considerations William A. Yasnoff, MD, PhD, FACMI Managing Partner, NHII Advisors Adjunct Professor, Division of Health Sciences Informatics Johns Hopkins University WCIT Guadalajara, Mexico September 30, 2014 © 2014
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Overview: “Big Data” has Value Need critical mass (“Big”) Most of population Need repository with comprehensive records for each person (“Data”) 0 20 40 60 80 100 0 20 40 60 80 100 Value of Info (%) Completeness of Information (%) Value vs. Completeness of Health Information Source: Yasnoff WA: Health Information Infrastructure. In Biomedical Informatics: Computer Applications in Healthcare and Medicine, Fourth Edition (Shortliffe & Cimino, eds.). New York: Springer-Verlag, 2014, pp. 423-441.
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Funding Options for Health Information Infrastructure 1. Public funding Additional taxes unpopular 2. Capture health care savings One stakeholder’s “savings” is another’s “lost revenue” Timing, magnitude, and distribution of savings – Unproven – Difficult to predict 3. Leverage new value of comprehensive electronic patient records
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Health Record Banking: Community Paradigm Shift Fetch & Show • Based on manual “fetch & fax” • Inefficient & expensive • Prone to error (record sources unavailable) • Impractical to search data • Hard to protect patient privacy • No sustainable business model Repository • Based on “deposit to account” • Efficient & inexpensive • Reliable & secure • Searchable for public health & research • Privacy assured via patient control • Each community has one (or more) health record banks • Each patient has an account in a single health record bank Health Record Bank
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http://www.healthbanking.org/video1.html What is a Health Record Bank?
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Health Record Bank (HRB) Secure community-based repository of complete health records Access to records fully controlled by patients (or designee) “Electronic safe deposit boxes” Information about care deposited once when created Operation simple and inexpensive Enables effective business models by leveraging value of “Big Data”
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Health Record Bank Architecture Patient Records Clinician EHR Patient Encounter HRB 1 3 2 Diagram © Health Record Banking Alliance, 2013. Used by permission.
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Clinical Encounter Health Record Bank Clinician EHR System Encounter Data Entered in EHR Encounter Data sent to Health Record Bank Patient Permission? NO DATA NOT SENT Clinician Inquiry Patient data delivered to Clinician YES optional payment Clinician’s Bank Secure patient health data files Health Record Bank Operation
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HRB Rationale Operationally simple Records immediately available Deposit new records when created Enables value-added services Patient control Trust & privacy Stakeholder cooperation (HIPAA in U.S.) Low cost facilitates business model Can include EHR incentive options to assure all-electronic data – Pay for deposits – Provide Internet-accessible EHRs
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How HRBs Create Value Health Record Bank provides free/subsidized EHRs for physicians More complete electronic health Enables delivery of record information optional services with compelling value Patients sign up for free HRB accounts (recommended by physicians) Enables physicians to provide better patient care $
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HRB Revenue Sources 1. Individuals 2. Health Care Professionals 3. Hospitals 4. Health Plans 5. Health Insurers 6. Public Health Departments 7. Policymakers 8. Researchers 9. Advertisers
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HRB Services: 1. Individuals Reminders & Alerts Peace of Mind – Loved ones notified of emergency treatment Prevention Advisor – Reminders of needed tests and procedures based on demographics and medical records Medication Refills (may be sponsored) – Text messages when due
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HRB Services: 2. Health Care Professionals Automatic patient reporting of normal/unchanged lab results Patient intervention alerts Quality measures
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HRB Services: 3. Hospitals Access to patient summary in Emergency Department Medication reconciliation Patient intervention alerts Reduce costly record requests Quality measures Targeted prevention/population health
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HRB Services: 4. Health Plans Patient intervention alerts Quality measures Sponsorship of premium HRB services for members reduced costs Targeted prevention/population health interventions
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HRB Services: 5. Health Insurers Patient intervention alerts Quality measures Sponsorship of premium HRB services for members reduced costs Targeted prevention/population health interventions Analysis of de-identified utilization data
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HRB Services: 6. Public Health Departments Surveillance Disease/condition incidence/prevalence Treatment effectiveness in population Targeted prevention initiatives
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HRB Services: 7. Policymakers Monitor effects of policy changes Assess cost and value of care Assess effectiveness of prevention efforts
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HRB Services: 8. Researchers Find subjects for clinical trials Aggregated statistics in population Correlations Trends Monitor for adverse events
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HRB Services: 9. Advertisers Targeted messages based on disease/condition (with patient permission) Services of interest Discounts Special offers
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HRB Business Model Example Costs (with >= 1,000,000 subscribers) Operations: $6/person/year EHR incentives: $10/person/year – Cloud-based EHR $5K/physician/year – In U.S., 300 million population/600K physicians = 500 people/physician – $5K EHR/500 people = $10/person/year Total cost $16/person/year
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HRB Business Model Example Revenue Reminders & Alerts: >= $18/person/year ($60/year x 30% penetration) – “Peace of mind” alerts ($20/year) – Preventive care reminders ($20/year) – Medication reminders ($20/year) Researcher Queries: >$5/person/year Advertising: ~$3/person/year (option to opt out for small fee) Total revenue = $26/person/year No need to assume/capture any health care cost savings (!!)
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HRB Business Model Example Bottom Line Total cost = $16/person/year Total revenue = $26/person/year Net profit $10/person/year $10,000,000/year with 1,000,000 subscribers
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Pro Forma Example (Houston) ($1,000) $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 "Expenses ($K)" "Revenue ($K)" "Net ($K)" Month Initial Capital: $4.4 MM Breakeven: 16 months EBITDA Year 4: $41 MM+
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Health and Promotion Prevention Initiative (HAPPI) Link HRB with Community Population Health Organizations Use HRB profits to fund population health E.g., half of profits for 1 million population = $5,000,000/year Aligns interests of healthcare stakeholders IF there are incentives for population health
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How does a HAPPI work? PATIENT CONTROL CENTRAL REPOSITORY Stakeholder Cooperation ensures Electronic Patient Data provides Benefits 1. Clinical: Quality,Costs 2. Reminders/Alerts 3. Research produces pay for enables Prevention (stakeholder need) empowers Privacy protects Financial Incentives ensure Key Design Decisions Initial Steps: 1. Free/subsidized EHRs for physicians 2. Physicians recruit patients for free HRB accounts
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Summary “Big Data” has value Need critical mass (“Big”) Need repository with comprehensive electronic patient records (“Data”) Possible mechanisms for funding HII Taxes unpopular Capture health care savings untenable Health Record Banks facilitate business models by generating value from data Revenue from many stakeholders Health Record Banks can be profitable WITHOUT capturing health care savings
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Paradigm Shift Fetch & Show • Based on manual “fetch & fax” • Inefficient & expensive • Prone to error (record sources unavailable) • Impractical to search data • Hard to protect patient privacy • No sustainable business model Repository • Based on “deposit to account” • Efficient & inexpensive • Reliable & secure • Searchable for public health & research • Privacy assured via patient control Health Record Bank
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Questions? William A. Yasnoff, MD, PhD, FACMI william.yasnoff@nhiiadvisors.com 703/527-5678
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