Healthcare industry review Q2-2008; RSM EquiCo Capital Markets

Healthcare Information Sharing

Advances in information technology have enabled better gathering, processing, management, and distribution of data. Nevertheless, less than one third of all U.S. hospitals and less than 20 percent of physicians' offices have meaningful forms of electronic data handling capability. As a result, IT spending is likely to remain robust for the foreseeable future.

Two areas of particular interest involve interoperability of healthcare systems and patient information management. Interoperability of health systems enables information exchange between hospitals and other facilities in order to improve the quality, efficiency, and effectiveness of treatments. In June, the Certification Commission for Healthcare IT (CCHIT) published its approved criteria for certifying certain electronic-health-record products, and they will begin accepting applications as early as August. Organizations such as CCHIT and the Healthcare Information Technology Standards Panel are committed to the adoption of widely accepted interoperable healthcare IT standards throughout the United States.

Concerning patient information management, Longs Drug Stores Corporation announced a partnership with Google to launch Google Health, a platform for linking Longs' pharmacy clients with doctors and healthcare providers in order to manage their electronic medical records. Separately, Kaiser Permanente has teamed up with Microsoft to launch a pilot program that would allow Kaiser's members to store their personal health information securely online using Microsoft's Health Vault. Read complete report.