Critics would counter that a short-term recoil is not what the healthcare industry needs for long-term results.

Mike Cummins, CIO at VHA Inc., is one of them. Cummins steadfastly advocates for IT to be carefully woven into the fabric of healthcare operations. Healthcare Purchasing News asked Cummins to outline the battle plan for IT investment and how group purchasing organizations can play a role in making it happen.

HPN: How do you see the current economic challenges specifically affecting IT adoption and implementation on the provider side?

Mike Cummins

CUMMINS: In today’s economic environment, many providers are cutting back on major capital purchases, such as information technology. Hospitals are having difficulty getting loans or can’t afford the rates being offered on loans, and they can’t use the bond route to get funding either. A low-interest government loan program would be instrumental in helping hospitals adopt electronic medical records.

Many suppliers are feeling the financial pinch of today’s economy and may be more willing to offer discounts and unique pricing models than they have previously. For example, VHA is exploring new pricing models for our supply chain analytics tools we offer hospitals. Suppliers that offer creative models will survive today’s challenging economic environment. Those who maintain their traditional business models are less likely to survive.

The stimulus package has earmarked $19 billion to help with healthcare IT reform and support widespread implementation of electronic medical records. While this isn’t enough money to pay for the implementation of this technology, these funds can be used to offer industry guidance, reward early adopters and provide low-interest rate loans to providers so they can implement electronic medical records (EMR) projects.

Beyond the efficiencies that the IT systems themselves create, the entire effort of preparing for implementation will also force hospitals to review their processes and identify opportunities to squeeze out additional inefficiencies and errors. As a result, they will have a more effective electronic medical record system and improved processes and procedures and function more efficiently. We have seen similar results as VHA has helped hospitals with clinical quality improvement. We work with them to map their processes before we help them apply the appropriate clinical blueprints. While helping hospitals to improve one clinical program, we have seen improvements in overall processes.

VHA is committed to improving the quality of patient care. A number of our executives serve on industry panels to help promote GS1 and other standards. We work closely with hospital CFOs and CIOs to help them address important clinical issues. We have also developed clinical blueprints to help hospitals rapidly improve their performance in key clinical measures, such as treatment and prevention of pressure ulcers. As the hospitals improve care in one area, they are better equipped organizationally to take on other improvement projects elsewhere. I think the Obama Administration will generate momentum for improvement and help accelerate the pace of healthcare improvement by encouraging broader adoption of electronic medical records.

All hospitals want to improve the health and safety of their patients – and they want the tools, like EMRs, that will allow them to do this. Just as with any change-management initiative, healthcare providers need to obtain organizational readiness – buy-in – from the C-suite and from doctors before rolling out electronic medical records. It’s not enough to simply implement this technology – clinicians need to understand how this technology will affect the quality of care they provide and be committed to using it. Otherwise, they will revert to their old ways. This bill’s structure allows providers to demonstrate the measures that matter – utilization and quality improvement – in order to receive payment.

These concerns aren’t going to go away. However, there are a few things providers need to consider:

1. Ensure that the management and medical teams are committed to this initiative. They need to understand why electronic medical records are important and how they can positively impact patient care.

2. Investigate whether open source products, such as VISTA – the existing VA system, might be appropriate for your organization. This is a proven technology and if a provider hasn’t already made a commitment to another [competing] technology, this will cut implementation costs in half.

3. If you are worried about your investment, be sure to use technology that is CCHIT [Certification Commission for Healthcare Information Technology] compliant. If you purchase products that are CCHIT compliant, there is a greater chance that your investment will be viable in the future.

The important thing is that the technology is used once it is installed – and this requires not just IT, but a cultural change and commitment. Otherwise, you won’t realize the full value of your investment.

Improving the quality of patient care and reducing medical errors benefits everyone – especially the patient. The information generated allows both employers and providers to negotiate better contracts with payers. By the same token, employers and taxpayers will benefit from decreasing the cost of care and improving consumers’ health.