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(http://www.hhs.gov/) (http://www.hhs.gov/)

News Release

FOR IMMEDIATE RELEASE

Wednesday, May 11, 2005

Contact: HHS Press Office

(202) 690-6343

HHS Secretary and Leading U.S. Companies Say Health Information Technology

Should Be Urgent Priority

Public-Private Collaboration Necessary to Achieve the President’s Vision for

Widespread Health IT Adoption

HHS Secretary Mike Leavitt issued a new report today citing investment in

information technology (IT) as an essential, high priority for the American

health care system and the U.S. economy.

“Information technology is a pivotal part of transforming our health care

system,†Secretary Leavitt said. “We are at a critical juncture. Working in

close collaboration, the federal government and private sector can drive

changes that will lead to fewer medical errors, lower costs, less hassle and

better

care.â€

The report, “Health Information Technology Leadership Panel: Final Report,â€

was released at the Business Rountable’s Chief Executive Officer (CEO)

Health Care Summit where Secretary Leavitt and Treasury Secretary Snow

discussed the burden of rising health care costs on the U.S. economy and global

competitiveness and the role of health IT in managing these costs. The meeting

was chaired by B. McCallister, CEO of Humana, Chairman of the

Roundtable’s Health and Retirement Task Force, and leader of the

Roundtable’s

efforts to improve the health care system.

In April 2004, President Bush called for personal electronic health records

for most Americans within 10 years and nationwide adoption of health IT.

Answering this call, HHS issued the Framework for Strategic Action in July

2004.

The Lewin Group, a health care policy consulting firm, which was the HHS

contractor, convened the Health Information Technology Leadership Panel.

Membership was drawn from corporate executives in large companies that purchase

a

substantial amount of health care for their employees. The report issued today

was prepared by the Lewin Group.

The Leadership Panel identified three key imperatives for health IT:

1. Widespread adoption of interoperable health IT should be a top

priority for the U.S. health care system.

2. The federal government should use its leverage as the nation’s

largest health care payer and provider to drive adoption of health IT.

3. Private sector purchasers and health care organizations can and

should collaborate alongside the federal government to drive adoption of health

IT.

The panel also reached six conclusions to guide health IT adoption by the

federal government and private sector.

1. Potential benefits of health IT far outweigh manageable costs.

2. Health IT needs a clear, broadly motivating vision and practical

adoption strategy.

3. The federal government should provide leadership, and industry will

engage and follow.

4. Lessons of adoption and success of IT in other industries should

inform and enhance adoption of health IT.

5. Stakeholder incentives must be aligned to foster health IT adoption.

6. Among its multiple stakeholders, the consumer – including individual

beneficiaries, patients, family members and the public-at-large – is key to

adoption of health IT and realizing its benefits.

Finally, the Leadership Panel identified themes regarding the relative

benefits and costs of health IT implementation.

* First, investment in health IT is urgent and vital to rising health

care demands, business interests and the broader US economy. Despite the

initial costs, health IT will become an essential means -- among others -- for

managing health care costs.

* Second, the potential benefits and costs of health IT must be

clearly perceived by its stakeholders.

“The Leadership Panel asked the Federal government to approach health care

in a new way -- as a catalyst for change and as a collaborator,†said

National

Coordinator for Health Information Technology, J. Brailer, M.D., Ph.D.

“The panelists’ recommendations verify the need for shared public and

private investment and ongoing collaboration to achieve the President’s

vision for

widespread health information technology adoption.â€

Panelists specifically suggested several actions the government could take

to help lead the adoption of health IT. Specific recommendations included:

making changes to policies and programs that would take the form of incentives

and rewards for health IT adoption in the private industry; continue to

strengthen efforts to coordinate the adoption and use of interoperable health

IT

across the federal enterprise; take savings from streamlining investments and

reinvest them back into additional health IT implementation; continue to

promote the adoption of harmonized standards; and, finally, continue funding

demonstrations and evaluations of interoperable health IT.

CEOs who participated on the HIT Leadership Panel included: CEO of the FedEx

Corporation, Frederick ; CEO of General Motors, Rick Wagoner; CEO of

International Paper, Faraci; CEO of Controls, Barth; CEO of

Target Corporation, J. Ulrich; CEO of Pepsico, Steve Reinemund; CEO of

Procter & Gamble, Alan G. Lafley; CEO of Wells Fargo, Kovacevich; and

Glass (former CEO) of Wal-Mart Stores, Inc.

A copy of the “Health Information Technology Leadership Panel: Final

Reportâ€

is available at _http://www.hhs.gov/healthit/HITFinalReport.pdf_

(http://www.os.dhhs.gov/healthit/HITFinalReport.pdf) .

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