Recommended Citation: U.S. Congress, Office of Technology Assessment, Bringing Health Care Online: The Role of Information Technologies, OTA-ITC-624



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Recommended Citation: U.S. Congress, Office of Technology Assessment, Bringing Health Care Online: The Role of Information Technologies, OTA-ITC-624 (Washington, DC: U.S. Government Printing Office, September 1995).

oreword nformation technologies are transforming the way health care is delivered. Innovations such as computer-based patient records, hospital information systems, computer-based decision support tools, community health information networks, telemedicine, and new ways of distributing health information to consumers are beginning to affect the cost, quality, and accessibility of health care. Changes in the health care delivery system, including the emergence of managed health care and integrated delivery systems, are breaking down the organizational barriers that have stood between care providers, insurers, medical researchers, and public health professionals. Old distinctions between clinical health information and administrative health information are gradually eroding as new health care delivery patterns emerge that are supported by, and in some cases reliant on, the widespread use of networked computers and telecommunications. Bringing Health Care Online: The Role of Information Technologies discusses the synergy between information technologies and new trends in the health care delivery system as health care is brought online. It identifies some of the opportunities to improve health care delivery through increased use of information technology, and discusses some of the conceptual, organizational, and technical barriers that have made its adoption so uneven. The report identifies key technologies and shows how they are being used to communicate clinical information, simplify administration of health care delivery, assess the quality of health care, inform the decisionmaking of providers and administrators, and support delivery of health care at a distance. OTA appreciates the assistance of the project advisory panelists, workshop participants, and contractors, as well as the many other individuals who participated in the study. OTA values their perspectives and comments; the report is, however, solely the responsibility of OTA. ROGER C. HERDMAN Director iii

dvisory Panel Clement McDonald (Chair) Distinguished Professor of Medicine Indiana University School of Medicine Indianapolis, IN June Abbey Director of Research Institute of Innovation Shadyside Hospital Pittsburgh, PA Stephen Deutsch Professor Labor Education and Research Center University of Oregon Eugene, OR Elliott Fisher Associate Professor of Medicine Dartmouth Medical School Hanover, NH Bonnie Guiton Hill Dean McIntire School of Commerce University of Virginia Charlottesville, VA James Hazelrigs Executive Director Medical Database Commission State of North Carolina Raleigh, NC Susan Horn Senior Scientist Institute for Health Care Delivery Research Intermountain Health Care Salt Lake City, UT James Hunt Distinguished Professor Health Sciences Center University of Tennessee Memphis, TN Nancy Milio Professor of Health Policy & Administration University of North Carolina Chapel Hill, NC Lori Muhlstein* Market Manager, Health Care Bell Atlantic Corp. Falls Church, VA John Nyman Associate Professor Institute for Health Services Research University of Minnesota Minneapolis, MN Madison Powers Senior Research Scholar Kennedy Institute of Ethics Georgetown University Washington, DC Jane Preston President American Telemedicine Association Austin, TX Marsha Radaj Vice President, Operations Wisconsin Health Information Network Brookfield, WI William Reed Quantum Health Resources, Inc. Indianapolis, IN Bert Tobin Executive Vice President Benton International New York, NY Bradley Ware Fairfax, VA *Until December 1994 Note: OTA appreciates the valuable assistance and thoughtful comments provided by the advisory panelists. The panel does not, however, necessarily approve, disapprove, or endorse this report. OTA assumes full responsibility for the report and the accuracy of its contents. iv

roject Staff Peter D. Blair Assistant Director, OTA Industry, Commerce, and International Security Division Clyde Behney Assistant Director, OTA Health, Education, and Environment Division Andrew W. Wyckoff Program Director Industry, Telecommunications, and Commerce Program James W. Curlin Program Director 1 Industry, Telecommunications, and Commerce Program Sean Tunis Program Director Health Program Karen G. Bandy Project Director Jean E. Smith Assistant Project Director William Creager Contractor/Congressional Fellow David Klingman Senior Analyst Laura Stricker Research Analyst 2 ADMINISTRATIVE STAFF Liz Emanuel Office Administrator Karry Fornshill Secretary Diane Jackson Administrative Secretary Karolyn St. Clair PC Specialist PUBLISHING STAFF Mary Lou Higgs Manager Chip Moore Production Editor Bonnie Sparks Electronic Publishing Specialist Chris Onrubia Senior Graphic Designer CONTRACTORS Aspden Associates Collin Canright Health Economics Research, Inc. The Orkand Corp. Phoenix Planning & Evaluation, Ltd. Project HOPE, Center for Health Affairs 1 Through September 1994 2 Through June 1994 v

ontents 1 Introduction, Summary, and Options 1 Challenges and Opportunities for Information Technologies 2 Trends in the Health Care System 5 Congressional Interest 9 Report Summary 10 Other Applications 23 2 Information Technologies for Transforming Health Care 29 Islands of Automation 30 The Life Cycle of Health Information 34 Key Technologies for the Emerging Health Information Infrastructure 42 Sharing the Common Pool of Data 68 Policy Issues and Options 73 3 Networks for Health Information 79 Administrative Simplification 80 Administrative Activities in Health Care 83 Provider Administrative Activities 83 Exchanging Information Between Providers and Payers 84 Linking Health Care Providers With Suppliers 93 Pharmaceutical Industry EDI 94 Community and Regional Networking 95 Costs and Cost-Effectiveness 103 Policy Implications of Electronic Health Information 109 Policy Considerations for Congress 118 4 Using Information Technology to Improve the Quality of Health Care 123 Clinical Decision Support 124 Performance Assessment 142 Conclusions 152 vi

5 Telemedicine: Remote Access to Health Services and Information 159 Telemedicine s Potential Effects 160 Telemedicine Applications 165 Telemedicine Issues 177 Telemedicine Policy Options 187 APPENDICES A Workshop Participants 193 B Reviewers and Contributors 195 C D E Applications of Clinical Decision Support Systems 197 Executive Branch Telemedicine Activities 201 Electronic Health Information Sources 207 F Boxes, Figures, and Tables 213 G Abbreviations and Glossary 215 vii