I ran across a Webinar from March 4, 2010 the other day about “the cloud.” The presenter was Steve Ballmer, CEO of Microsoft. It changed my understanding of where the cloud is and where we are going. He didn’t address EMRs specifically, but it easy to see how the cloud will be part of the solution to networking EMR and health information to make it useful, reduce costs, and improve outcomes. Excerpts from the transcription:
So, I’m going to give a little bit of perspective on the cloud really from the standpoint of people who get a chance to use it, to drive it, to shape it, to make something of it. …
First principle, the cloud creates opportunities and responsibilities.
The amount of invention that needs to happen is high. The world is still not a perfect place in terms of the commercial infrastructure. Yes, you can create a Web page and put on an AdSense ad. But, we certainly haven’t fulfilled the sense, the opportunities to create technology that empowers the creator. …
Immediately people get nervous, particularly when you talk about advertising. They get nervous, what about my privacy. And that’s why I think we have to talk about the opportunities and the responsibilities. The responsibilities for creators, for business people to respect the consumer, to build technologies that really do allow the user to be in control. … And yet I think we have a responsibility, all of us, not just to socially respect the user, but to build the technology that will protect the anonymity, the privacy, the security of what I say, who I say it to, where I go, what’s important to me.
Second dimension of the cloud: The cloud learns and helps you learn, decide and take action
The world is a large, complicated place. So, the first thing that got built to help people navigate was essentially directory services, search services. People built tools to help you navigate and find information, pull it all together, et cetera. And yet, we’ve got to go further than that. The cloud needs to learn about you and it needs to keep learning and figuring things out about the world that has been described virtually.
It’s great to know about 83 million Web sites on the planet, but if you’re actually trying to find something specific … I’ll put my hand up, as part of the U.S. healthcare debate I decided I should actually understand what we spend money on as a society. Try that one out for size. Pick any search engine you like and go give it a whirl. You’ll get a bunch of links, you’ll find a bunch of data, you’ll probably try to cut it, copy it, paste it, but you won’t be able to just sort of describe maybe like a simple, little chart that you would like to see populated. How much money do we spend on healthcare, how much of it gets spent on older people, younger people, poorer people, richer people, people in the last year of their life.
It’s only about eight numbers, there happen to be eight numbers that you can’t learn by following the public debate. But, there were eight numbers that I felt as a citizen I ought to know. But, the ability of the cloud to actually learn from all of the data that’s out there, and the ability of the cloud to learn from me what I’m interested in is not what it will be two, three, four, five years from now.
I happen to be a numbers thinking guy, I would create that little healthcare thing as a little spreadsheet. I would want Excel to just go get that stuff from the cloud. And so this notion of learning, learning about me, learning about the world, making conclusions, and then helping me to decide and take action, I think is a very big idea.
The cloud itself needs to learn. It’s got to collect new data. It’s got to sense new data. It’s got to represent the real world, and keep getting smarter and better, so that it can help me learn. … [demonstration using maps and photos to bring information from multiple sources together, including real time sources, e.g hospital, doctors, labs, pharmacies, personal health records.]
I hope the demonstration does a couple of things. Number one, I hope it kind of wets your whistle for some of the kinds of things that can be done. And number two, it really helps bring together this notion about learning about the world, how do we learn from others, how do we pool the data that’s available on the Web to learn about the world, and then map it and make it of interest to somebody in real life.
Third dimension. The cloud enhances your social and professional interactions …
Dimension No. 4, the cloud wants smarter devices.
The way in which we can learn about you, the sensors, the cameras, the voice, the gestures, today. This year, we’ll get about 10 billion utterances, speech utterances, submitted to us in the cloud through something called our TellMe Service, which handles call centers, and Bing kind of phone voice response searches, and the like. And so, the ability for the device to participate in connecting to the user, providing a richer interface, to get data back from sensors, and use that to improve the cloud experience on behalf of the users is really quite strong.
Later this year, we’ll ship a thing that we call Project Natal. It’s a camera that comes with the Xbox, and it recognizes you, and your voice, and your gestures. … The great smart device hardware is going to bring together the best of what we think of today as rich clients, and the best of browsers, and the best of a next generation of natural user interface, voice, touch, speech, et cetera, all in one unit. [EMRs and the user interfaces.]
Dimension No, 5, the cloud drives server advances that, in turn, drive the cloud.
Cloud Computing Remarks by Microsoft CEO Steve Ballmer
Paul G. Allen Center for Computer Science & Engineering, University of Washington Seattle, Wash. March 4, 2010
Webinar: http://www.microsoft.com/presspass/presskits/cloud/default.aspx
Transcription: http://www.microsoft.com/presspass/exec/steve/2010/03-04Cloud.mspx
EMR: Free? Really!
Free is a marketing term that typically evokes a mixed set of reactions ranging from an optimistic “You have my attention, tell me more,” to a cynical “There’s gotta be a catch,” to a pessimistic “There’s no such thing as a free lunch.” All three of these showed up when I heard about a free electronic medical records system offered by a company called Practice Fusion.
Their Web site referenced the book Free: The Future of a Radical Price, which includes an analysis of “How can healthcare software be free?” So I read the book. The basic theme is that costs of data storage, transmission, and processing are falling so fast—on the order of 50% per year–that the costs associated with “bits” of data (as contrast to “atoms” or physical stuff) are heading for zero. With atoms, revenue usually has to be associated with cost. With bits, revenue can be loosely related to costs or even independent of costs.
At the level of a private or small group medical practice the typical evolutionary path for medical records is from paper to site-specific computer to networked systems. Most of the software being sold today is site specific which means the doctor has to pay the up-front costs and networks will be added on. But, only some of the value accrues to the doctor and there is little or no broad agreement about what the networks will be or how they will be managed.
Practice Fusion sees the value in both the local data and data that is networked. Their basic premise is that by providing an EMR to a doctor the doctor’s data will be in a format consistent with the data of all of the other doctors using their system. With the appropriate consents and controls in place, the data can then be networked among subscribing doctors with full compatibility. Subscribing Doctor A can send a patient’s data to Subscribing Doctor B without translation, formatting or delay. Doctor A can send data to other doctors who do not subscribe to Practice Fusion with a similar level of ease or difficulty as using a site-specific system. Data can also be forwarded to billers and insurers.
With appropriate consents and controls in place, the data from multiple practices can be de-identified, consolidated, and shared with public health agencies and medical researchers to further increase its value at a very small increase in costs. Data can be sold at a higher price because it will be in a standard format and in larger quantities. A researcher, whether a not-for-profit institution or commercial company that needs 1,000 records will be able to go to one place and quickly get records of a known quality. Practice Fusion will recover its investment and cost from advertising (optional to users) and the sale of the data.
Practice Fusion has placed itself in the enviable position of having a cost structure that is getting less expensive and a revenue stream derived from data that is becoming more valuable over time as it gains longitudinal range.
Free presents the following hypothetical model:
Free is an option worth considering. Does that mean you should sign up? No.
The normal business process for selecting a system is to do a high level search and assessment to narrow the number of candidate systems for further study. The fact that free makes sense just means that a Practice Fusion system, or others like it, qualifies as a first round candidate.
The next step would typically be to prepare a cost/benefit study among the top few candidates. Because one of the systems is no-cost, the focus for the next step should be based largely on benefits.
Moving medical records from paper to a computer system provides opportunities to reduce office costs and improve both administrative and medical services to your patients. Benefits will include those directly related to the creation, storage, use, and networking of records plus those related to administration such as the non-medical part of patient records, appointments, billing interfaces, etc.
If you have already done your homework, now is the time to look at the benefits of a no-cost system. If you haven’t done your homework, check with other doctors and see what systems they recommend—both positive and negative. Get vendor documentation for other systems and acquaint yourself with the benefits those systems offer. Make a list of must have, like to have if cost is reasonable, and nice to have. Also, a list of things to avoid (negative benefits.) Now go look at a no-cost option and compare the benefits.
If a pair of shoes doesn’t fit, they aren’t worth taking home even if they are free. If a system doesn’t provide the benefits you need, don’t waste time considering it further. You do not want to change your practice to save money on a system. You want a system that will allow you to get the benefits at the lowest cost in terms of dollars with no negative impact on performance.
If a no-cost system provides the benefits you need at least as well as a for-cost system you have your answer. If two systems have comparable benefits, the cost/benefit analysis will always be better for a no-cost system than one where you buy it or pay a license fee.
If a no-cost system meets you minimum requirements and a for-cost system provides better benefits, you need to judge whether the better benefits justify the cost. They may. If a free pair of shoes fit but are not your style you will probably get more value out of a pair you like even if you have to pay for them. It is sort of the same thing with a computer system.
As a place to start, free is definitely worth considering. Be certain the vendor has a business model that makes sense. If it does, the next step is to get more information and be certain the system really meets your current and long term needs. But, that’s material for another blog post.
A footnote: On May 14, Chilmark Research, one of the healthcare blogs we follow posted a blog titled Where’s the Beef about another company that is offering a free service. That company claims it will be “generally available” in August. “Imagine our disappointment when we clicked on the [site] to find very few concrete details as to what the platform would offer …” Free is a good place to start but the real test is whether or not the system provides the services, protection, etc., you need. Thanks Chilmark for helping us make the point that it takes more than just free to make a system attractive.
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