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Intel Chairman Has Harsh Words for Healthcare Industry

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One of the more interesting features of last week's HIMSS conference was the speech by Craig Barrett, the Chairman of Intel Corporation and a member of the American Health Information Community.

Why so? Barrett is an outsider to healthcare industry, "semi-retired", financially independent and not seeking a political office. This means we can count on him to tell us "as it really is". Mr. Chairman does not mince words or hide his disgust with the current state of affairs.

Consider these talking points from his speech and interview:

  • The healthcare industry has to stop thinking it can operate inefficiently with substandard results because it thinks it's different and unique from other industries
  • Barrett challenged doctors to examine how their refusal to adopt health IT contradicts the Hippocratic Oath, since its use would help them make better medical decisions, achieve better results and make their patients happier
  • ''Doctors say 'I won't do this unless you pay for it' and there are people on AHIC who take that position,'' Barrett said. ''No other industry has discussion about 'Who's going to pay for putting a computer in my facility to make me work better?' ... That attitude is just so different from the attitude you see in any other industry.''
  • He called healthcare costs ''a tax'' on every business in the United States, and that unless the healthcare system becomes more efficient, it threatens to drag every other industry down with it. Barrett added that better efficiency and higher quality through the use of technology is the answer to this problem, and that healthcare must stop dragging its feet on investing and implementing it
  • Barrett predicted that there would be two factors driving change: consumer empowerment, where patients vote with their feet to choose high-quality providers who use health IT while abandoning those who deliver inferior care; and the purchasing power of ''the two 800-pound gorrillas'' in the room -- major employers and government

These are harsh words that are sure to rub most participants in the healthcare value chain the wrong way. Apparently Barrett is not trying to act as a "convener of stakeholders" and is content with expressing outrage and emphasizing sticks over carrots.

Guess what? Today it is Barrett, but if the industry does not get its act together next it will be the Congress to pull out the sticks and club down the "tax on American competitiveness".

Rethinking the modern meaning of Hippocratic Oath, raised by Barrett (and Brailer) has inspired the name of this blog: "What Would Hippocrates Do?". The author has to attest that quite a few commenters questioned this whole premise. But it is clear that the healthcare purchasers, including consumers & employers are asking fundamentally similar questions and are not shy to flex their market powers.

Health IT market pressures may not have fully materialized yet, but those who plan to ignore them will do it at their own peril. Early adopters will win. Laggards will lose and rightly so. Industry is set for change.

Quotes via Modern Healthcare and iHealthBeat.

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from medmusings on Thu, 02/23/2006 - 11:19pm

Google Page Creator: easy website creation hosted by google: googlepages (tags: google website hosting authoring) Craig Barrett, the Chairman of Intel Corporation Has Harsh Words for Healthcare Industry @ HIMSS but they're wasted on us: there's not enoug

Comments (4)

Submitted by Dr. Rob Lamberts on Thu, 02/23/2006 - 1:45pm.

While I do not disagree that the system is broken and am happy someone is noting that the king has no clothes in pointing out that we are accepting suboptimal care, I think his laying this at the feet of doctors is not accurate.  The financial pressures of  primary care practices, which are the main ones that need to computerize, are enormous.  Only doctors as crazy....I'm sorry, visonary, as I am have been able to automate up to now.  The fact is, the reimbursement system encouraged physicians to spend very little time with patients and not focus on quality.  You get what you ask for.

Dr.  Rob Lamberts

Augusta, GA

For other writings, check out

http://robsoddblog.blogspot.com/

Submitted by hippocrates on Thu, 02/23/2006 - 2:29pm.

I did emphasize in the post that Barrett goes much further than others in pointing fingers. This is not necessarily constructive or fair, but he is not even trying to be. He can afford to throw stones, because he lives outside of the industry glasshouse!

However, the silver lining here is that Intel Chairman might be a "leading indicator" of the general public's attitudes. If history is any guide the best way to survive a radical transformation brought by public pressure is to lead it.

Even AMA seems to finally acknowledge this with their latest decision to go along with P4P.

Submitted by dado on Fri, 02/24/2006 - 12:10pm.

No doubt the US Healthcare System is broken.  15% of Americans are uninsured, and the other 85% are under-insured.  When you have to pay as much as Americans do for healthcare, when you are 1 major illness away from being dumped by your insurer & going into bankruptcy, that qualifies as underinsured.

But I do think doctors should bear some accountability for the broken system we have as well as low penetrance of electronic medical records.  Basically the health care system we have is the design of the AMA.  The AMA have fought very hard repeatedly (4 times in the last century by my historical read) to preserve the status quo.  The AMA might make comments about changing window dressing here or there.  But in the end the only thing they really push for is preserving physician incomes and preventing reforms to our health care system like national health insurance.  I think the historical record is clear on this.

So to the extent that physicians are largely complicit in the AMA's agenda, we are to blame.

BTW I think national health insurance is the clear antidote to all of the above maladies.

Submitted by Dr. Rob Lamberts on Fri, 02/24/2006 - 4:04pm.

Interestingly, the AMA more represents the specialist than the primary care doctors.  Why should I be complicit in a system that pays an opthalmologist 10 times what it pays me?  Yes, the AMA has acted largely like a labor union, not caring about the health of the industry, but rather the wealth of the constituants (I know that is an unfair epitath for all labor unions, but it is true here). 

Yes, doctors as a group have acted in a self-seeking manner.  As primary care doctors, we have failed to band together and fight for our patients.  Instead, physicians have sat back and complained.

I just feel defensive when I see someone looking at the average Family Doc and saying they are at fault for not computerizing, when they are having to see more and more patients to just keep up with drops in reimbursement.  Obviously we have bucked the trend, but the rarity of this has lead me to believe that it is a system problem rather than mass stupidity on the part of the PCP's.

Dr. Rob Lamberts

Augusta, GA

For other writings, check out

http://robsoddblog.blogspot.com/

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