Press Release

NEW REPORT DETAILS SAVINGS FROM HEALTH CARE TECHNOLOGIES

Seven Advanced Technologies Lower Costs and Improve Quality

WESTBOROUGH, MA (October 16, 2003) – A new report released today by the Massachusetts Technology Collaborative (MTC) highlights $2.48 billion in potential net savings for the state through the implementation of seven advanced health care technologies. The report was developed by MTC in partnership with the New England Healthcare Institute as well as major players in the Massachusetts health care system.

The seven technologies in the report include electronic patient-physician communication, e-prescribing, ambulatory computerized physician order entry, inpatient computerized physician order entry, disease management tools, regional data sharing and remote intensive care unit monitoring.

“With such world-class health care organizations located right here in Massachusetts, we have a tremendous opportunity to improve the quality of care patients receive while also substantially reducing costs,” said MTC Executive Director Mitchell Adams. “The technologies are proven and the savings are documented – now we need the leadership and conviction to overcome obstacles to wide-scale deployment.”

The barriers and challenges to acceptance of these advanced technologies are addressed head-on in the report. For example, if patients could communicate directly with their providers via email, thus avoiding a costly visit, net savings in the system would amount to almost $200 million annually. The challenge is finding new mechanisms for calculating payments for these services as opposed to the current process associated with office visits.

“To drive widespread adoption of these beneficial advanced technologies, we must identify ways to realign incentives within the health care system,” said Wendy Everett, President, New England Healthcare Institute, “and it is vital that we work collaboratively to achieve this.

The report calls for changes in reimbursement mechanisms, state and federal laws and regulations, the basic approach to the management of disease, systems of drug prescribing, methods of clinical practice, and the administration of patient data. To begin making progress toward these ambitious objectives, the report highlights some first steps including:

• Create a statewide task force to develop an action plan during the next six months;
• Develop collaborative arrangements between payers and providers to share the costs of implementing these technologies;
• Work with the Department of Public Health to encourage adoption of new technologies through the licensing process;
• Secure capital funding through a variety of sources such as private foundations; and
• Establish a “trusted third party” to provide reliable data regarding costs, performance, effectiveness and standards.

The report was commissioned by MTC and prepared by First Consulting Group. Members of the working group that contributed expertise to the report include:

• Associated Industries of Massachusetts
• Blue Cross Blue Shield of Massachusetts
• CareGroup Healthcare System
• Group Insurance Commission
• Harvard Pilgrim Health Care
• Harvard Vanguard Medical Associates
• Massachusetts Business Roundtable
• Massachusetts Health Data Consortium
• Massachusetts High Technology Council
• Massachusetts Hospital Association
• Massachusetts Medical Society
• Massachusetts Taxpayers Foundation
• MassMEDIC
• New England Healthcare Institute
• Partners Healthcare System
• Tufts Health Plan

MTC, a quasi-public economic development agency, works to strengthen the state’s high-tech industry clusters and specializes in assembling professionals from industry, academia and government to create new economic opportunity for Massachusetts.