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APEC EMERGING INFECTIONS NETWORK

Network of Networks Meeting

Dinner Remarks by Neil E. de Crescenzo,
Vice President, IBM Global Services, San Francisco, CA USA

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Seattle, Jan. 29, 2002

Good evening.

Thank you for the opportunity this evening to discuss IBM’s view on the critical issue of network readiness. I think it is important to start out by stating that even as the world’s leading information technology company, at the IBM Corporation we do not see information technology — whether computers, software or networking — as a solution to such vexing problems as the spread of infectious disease. Rather we see information technology as an enabler of solutions. There is no doubt in my mind that the real innovation, commitment and follow through to aid in identifying and treating infectious disease will come from the type of “networking” this meeting represents — the reasoned consensus of experts in the field and those responsible for implementing the solutions that are designed by you and your colleagues.

In fact, though I will cover our experiences and conclusions regarding network readiness, I will also discuss some of the challenges involved in implementing any networking or other healthcare solution once the assessment is completed. I’ll provide some examples from here in the United States on how these implementation challenges are being met. While I realize there are enormous differences among the member economies belonging to APEC, hopefully the lessons learned through some of the work we have been involved in will be of benefit to each of you, no matter what the state of your healthcare delivery system or other economic and social factors.

So what I will take you through first is why assessing network readiness is an essential first step in improving any system for controlling and treating infectious disease. Since 19 of the 21 member economies of APEC participated in last year’s E–Commerce Readiness Assessment — in which IBM also participated — I won’t dwell on the necessity for this initial step, since clearly doing initial assessments is a process and discipline that APEC member economies have found valuable. But I will describe some of the details on how an assessment is executed.

Second, I will discuss why IBM is such an active and committed participant in these efforts. I will point out the causes and circumstances that not only bring IBM to the table, but are also the reasons other commercial entities and information technology providers participate in such efforts as well.

Third, I will share what have been some of the common gaps identified in these readiness assessments, so that these areas are highlighted for your consideration.

And finally, I will touch upon some of the implementation challenges we have seen when the assessment and solution phases lead to the implementation phase, and how in the United States two large–scale efforts have proceeded to address these challenges. I will first discuss Kaiser Permanente’s multi–billion dollar project to deploy a comprehensive outpatient healthcare management system across their 8 million membership base. I’ll then review a recently established collaborative effort to use healthcare information networks to combat bioterrorism, an effort that grew out of the tragic events of September 11th. And we should have some time for questions at the end.

Let me start with network readiness assessment. There are a number of public and private organizations leading the creation of processes and tools to aid with these assessments. At IBM, we have had a long–standing involvement with organizations like the Computer Systems Policy Project, or CSPP. CSPP is a public policy advocacy group in the United States that addresses broad policy issues that impact technology development. Its membership is limited to the Chairmen and CEOs of America’s largest technology companies. IBM Corporation Chairman and CEO, Louis Gerstner, Jr., is CSPP’s Chairman. Organizations such as APEC, and the Pan American Health Organization (or PAHO), as well as many more local bodies have taken the CSPP practices around network readiness assessment and used this information as input into developing the processes for network assessment that best fit their environment and circumstances. CSPP’s work can be readily accessed at www.cspp.org.

In work we have done with PAHO and other organizations around healthcare network readiness assessment, we have found that focusing on 3 key areas works well. These 3 areas are

  • Technology,
  • People and Policies, and
  • Governance

The technology topic has four sub–areas that are essential to the network readiness assessment. These are

  1. Technology infrastructure
  2. Access and Connectivity
  3. Applications and Services
  4. Data Integrity and Protection

Let me give you examples of the questions that are asked in each of these Technology categories.

  • Technology infrastructure: What is the “teledensity” in your economy? How many dial–up connections fail because they are busy or interrupted? What is the rate of packet loss? — Now if no one asks me what that means in the Question and Answer period, either everyone is concentrating on his or her dessert or I am actually speaking at an information technology trade show!
  • Access and Connectivity: What is the capacity of access services available to users (i.e., less than 56Kbps, 56Kbps, broadband connections through cable or DSL)? How restricted is the market for Internet Service Providers (ISPs)? What percentage of the population has access to the Internet? What is the current growth rate in Internet users? What are the prices for Internet access? What percentage of the users have mobile or cell phones? What is the capability of the economy to distribute end user devices such as PCs? What is the demographic profile of PC users? What is the number of healthcare service providers (such as hospitals) using the Internet or communicating with other healthcare network participants by other electronic means? For what purposes are they using these electronic networks?
  • Applications and Services: What applications are used by participants in the healthcare delivery system? What percentage of those applications is produced in the economy vs. externally? What percentage of the appropriate end users for these applications is currently using each application? What healthcare processes are working well and can be automated or digitalized to reduce costs and improve their effectiveness? What are the economy’s policy and the healthcare establishment’s goals with regard to data and/or content standards?
  • Data Integrity and Protection: What percentage of websites utilizes secure socket layer (SSL) technology to enhance the security of end users? To what degree is encryption allowed and how is its use regulated?

Under People and Policies, there are 3 sub–areas:

  • Organizational structure, where questions are asked about the managerial and workplace organization of the healthcare delivery system as well as how different entities relate as part of the care process.
Staffing and training, where there are questions such as: How is computer literacy addressed in the medical and professional training of healthcare practitioners and administrators? Do schools and training programs for healthcare professionals have access to recent technology and applications? What is the availability of trained IT support personnel? And,
  • Protection of data security and privacy, where questions are asked about the policies in place, and the effectiveness with which they are enforced, to ensure the technology and practices leading to superior data security and privacy are adhered to.

And finally, under Governance the assessment asks questions about how the healthcare system manages itself and deals with conflict, and examines the professional backgrounds of the individuals making clinical and healthcare policy and funding decisions. There are also regulatory issues: How is the market for telecommunications regulated? Has the economy acceded to the WTO Information Technology Agreement to enable optimal market conditions and pricing? How many licensees exist for cellular, PCS and/or packet data networks? How is the economy addressing the regulation of networking issues? Is there an accepted legal framework addressing these issues? Where does liability for unclear areas lie?

So if these are some of the questions asked in a network assessment, what is the potential role for entities such as IBM and why are we involved in these processes? First, as a global company with over 300,000 employees and millions of customers in 160 countries worldwide, we are active in broad public policy issues that are germane to our business, our employees and our customers. However, our particular involvement in readiness assessments, whether through the CSPP, PAHO, APEC or other organizations, reflects some conclusions drawn from our work with governments, research laboratories, corporations and small and medium businesses worldwide. One key conclusion was that these change efforts — and most of these efforts, including finding better ways to address infectious diseases, are change efforts should be based upon independent, quantifiable, data. Another lesson learned was to first develop a consensus on what the “ideal situation” would look like along key operational and policy dimensions. Once this “ideal” is agreed to, a rigorous process to perform an assessment and identify the “gaps” between the current state and the ideal can be performed.

Which leads us to discuss our third topic of the four I’m covering in this presentation – what common gaps have been identified in network readiness assessments? In many economies outside the largest and more technologically advanced economies, one of the biggest gaps has been the inadequate condition of the technology infrastructure. It is not only important to look at the current state of technology infrastructure, but to review the mechanisms in place (or not in place) to continue to invest and maintain that infrastructure over many years. We have seen this problem addressed through additional opening up of the economy, and/or through public–private partnerships to develop and manage infrastructure, which I’ll describe a bit later in one of my examples.

The next two areas where there are typically gaps vs. the “ideal” were seen even in the economies with higher GDPs per capita. The first is that there are typically issues around governance.  In the healthcare sector, these challenges are particularly acute. Improving the health status of a defined population involves the family, the school, the workplace and the health care delivery system at a minimum. Most of these entities are heavily influenced by government policy. Often the stated goals following a network assessment are far ahead of the practical ability of the institutions in the economy to act to achieve those goals. Second, another area where there often appears to be large gaps is around aligned incentives. We all know that any change effort has to start with “unfreezing” people from their acceptance from their current state and identifying a “future state” that they aspire to. The readiness assessment helps with both of these objectives. Where problems then occur is in causing all the parties that must collaborate to feel a sense of urgency and commitment over long periods time to reach milestone events on their way to the Promised Land. This has proven to be often an insurmountable challenge, and results in great plans for improvement sitting on senior executives’ bookshelves while the problems persist.

However, let me close with two examples of projects that are grappling relatively successfully with some of the issues I have just described. They are both examples from the United States, but I will describe how they represent universal approaches to addressing challenges in this area./font>

The first example is Kaiser Permanente’s implementation of a clinic, or out–patient–based, electronic health record. For those of you not familiar with this organization, Kaiser Permanente is one of America's leading integrated health care organizations.  Founded in 1945, it is a nonprofit, group–practice health maintenance organization (HMO) with headquarters in Oakland, California. Kaiser Permanente serves the health care needs of members in 9 states and the District of Columbia with over 8 million members, over 50,000 clinicians, over 11,000 physicians, 29 medical centers and over 40 medical offices. Kaiser’s revenue in 2001 was approximately $20 billion.

Kaiser has long recognized the positive impact digitizing and communicating its members’ healthcare information could have on making that information available where and when it is most needed — at the point of care. Three of its regional healthcare groups — in Ohio, Colorado and here in the Northwest — have won the prestigious Davies Award for excellence in implementing computerized patient records in their clinical environments. The Kaiser Colorado electronic health record system has resulted in the almost complete absence of paper medical records in their clinics.  Instead of the (paper) chart being available for the caregivers only 60% of the time when the patient arrives in the exam room, it is available 100% of the time, greatly aiding the care process.

In the mid�’s Kaiser decided to seek the leverage and impact it could have from acting as one national entity, rather than a loosely coupled series of regional groups. Therefore they decided to take the electronic health record that had been developed for their Colorado group of caregivers, expand its capabilities, and implement it nationally. The project is called KP–CIS (CIS stands for Clinical Information System).

What have been some of the main lessons learned from Kaiser’s experience?

  • Create a mechanism to ensure consensus is reached on what the system needs to do, by when, and at what cost. Kaiser spent years trying to develop this consensus among its leading groups — finally the implementation of the system in the Hawaii region helped bring about the realization among all parties that they needed to iron out their differences in order to avoid overly burdening the project with expense and complexity as it rolls out nationwide.

        Ensure the system is “owned” by the business leaders, especially the physician leadership, vs. the technology folks. Any information technology project can begin to consider itselfan IT implementation project that must succeed at any cost, rather than as a means to improving the care process (and a means that should periodically re–evaluated to see if more cost effective alternatives exist). Kaiser now applies return on investment criteria relating to its clinical improvement goals to all expansions of KP–CIS.

        Deploy as fast as you can, as broadly as you can; leave the bells and whistles and functional improvements to be addressed once the system is deployed broadly. The benefits to patients and caregivers from electronic health records are so substantial that getting these systems deployed as broadly as possible should be the initial goal. Caregivers and other users’ desires to add new functionality should be resisted until after broad deployment unless the return on investment is overwhelming.

While the deployment of an electronic health record by a $20 billion healthcare provider may seem far removed from the needs you have been discussing to address infectious disease, let me end by describing an initiative in the United States that is quite relevant. All of us were shocked and saddened by the events of last September 11th. Following those tragedies, we saw the advent of bioterrorism in the United States, with five people killed from inhaling anthrax spores in Florida, the Washington D.C. area, New York and Connecticut. A “readiness assessment” was performed by the Centers for Disease Control (CDC), the new Homeland Security Office, and other agencies and they concluded that there needed to be substantial improvements in the way the fragmented U.S. health system dealt with potential and confirmed outbreaks of bioterrorism.

Therefore, two weeks ago the CDC and the eHealth Initiative, supported by the Joseph H. Kanter Foundation, announced a collaborative effort to bolster the public health infrastructure and improve the United States’ preparedness and response to a potential large scale bioterrorism event. This initiative will initially focus on leveraging current healthcare information systems and existing data streams (including the CDC’s National Electronic Disease Surveillance System (NEDSS)) to enhance public health data collection, surveillance, and detection processes

This initiative is significant in many respects, but in relation to the issues raised earlier in my presentation tonight on implementing new network solutions to improve healthcare delivery, these are two very significant aspects of this initiative:

  • This is a public–private sector initiative, seeking to align interests across many constituencies in the U.S. health care system. Russ Ricci, MD, Global General Manager of IBM’s Healthcare Business Unit, is the Chairman of the eHealth Initiative (eHI). All major information technology companies active in healthcare are participating and have agreed to start with a small data set across which they will establish data and transmission standards; later the initiative will expand to more data sets. The members of eHI provide health systems for 80% of the hospitals in the United States and manage over 25% of our pharmacy information. There has never before been an effort this inclusive focused on addressing this public health risk. As Claire Broome, MD, senior advisor on integrated health information systems at the CDC, noted, “Coordination between the CDC and eHI could permit the information systems of public health departments and a majority of the hospitals in the U.S. to operate in a more interactive, efficient manner that is consistent with national standards.  This will also help us address our common health improvement goals.”

        Second, the parties have their interests relatively well aligned. The government and the American public receive a more timely and efficient public health system to fight bioterrorism. These leading healthcare technology companies further differentiate themselves from their smaller, uninvolved competitors by ensuring these new standards interface effectively with their installed base. And the nation’s caregivers, already overburdened by managed care and greatly reduced funding, do not have to make further investments in their information systems due to a government mandate.

The CDC – eHealth Initiative collaboration could serve as a model for using information technology and networks effectively to address other public health issues in the United States in the years to come.

I hope this presentation has illuminated some of the key aspects of networking readiness assessments, some of the common issues that are raised by such assessments, and perhaps most importantly has given you some ideas on how the plans coming out of such assessments can be implemented successfully. 

Thank you again for the opportunity to address this important meeting, and I look forward to any questions you may have.



Revised:
04–Oct.�
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