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News Release

HHS Secretary and Leading U.S. Companies Say Health Information Technology Should Be Urgent Priority

Public-Private Collaboration Necessary to Achieve the President’s Vision for Widespread Health IT Adoption

HHS Secretary Mike Leavitt issued a new report today citing investment in information technology (IT) as an essential, high priority for the American health care system and the U.S. economy.

“Information technology is a pivotal part of transforming our health care system,” Secretary Leavitt said. “We are at a critical juncture. Working in close collaboration, the federal government and private sector can drive changes that will lead to fewer medical errors, lower costs, less hassle and better care.”

The report, “Health Information Technology Leadership Panel: Final Report,” was released at the Business Rountable’s Chief Executive Officer (CEO) Health Care Summit where Secretary Leavitt and Treasury Secretary John Snow discussed the burden of rising health care costs on the U.S. economy and global competitiveness and the role of health IT in managing these costs. The meeting was chaired by Michael B. McCallister, CEO of Humana, Chairman of the Roundtable’s Health and Retirement Task Force, and leader of the Roundtable’s efforts to improve the health care system.

In April 2004, President Bush called for personal electronic health records for most Americans within 10 years and nationwide adoption of health IT. Answering this call, HHS issued the Framework for Strategic Action in July 2004. The Lewin Group, a health care policy consulting firm, which was the HHS contractor, convened the Health Information Technology Leadership Panel. Membership was drawn from corporate executives in large companies that purchase a substantial amount of health care for their employees. The report issued today was prepared by the Lewin Group.

The Leadership Panel identified three key imperatives for health IT:

1. Widespread adoption of interoperable health IT should be a top priority for the U.S. health care system.
2. The federal government should use its leverage as the nation’s largest health care payer and provider to drive adoption of health IT.
3. Private sector purchasers and health care organizations can and should collaborate alongside the federal government to drive adoption of health IT.

The panel also reached six conclusions to guide health IT adoption by the federal government and private sector.

1. Potential benefits of health IT far outweigh manageable costs.
2. Health IT needs a clear, broadly motivating vision and practical adoption strategy.
3. The federal government should provide leadership, and industry will engage and follow.
4. Lessons of adoption and success of IT in other industries should inform and enhance adoption of health IT.
5. Stakeholder incentives must be aligned to foster health IT adoption.
6. Among its multiple stakeholders, the consumer – including individual beneficiaries, patients, family members and the public-at-large – is key to adoption of health IT and realizing its benefits.

Finally, the Leadership Panel identified themes regarding the relative benefits and costs of health IT implementation.

• First, investment in health IT is urgent and vital to rising health care demands, business interests and the broader US economy. Despite the initial costs, health IT will become an essential means -- among others -- for managing health care costs.
• Second, the potential benefits and costs of health IT must be clearly perceived by its stakeholders.

“The Leadership Panel asked the Federal government to approach health care in a new way -- as a catalyst for change and as a collaborator,” said National Coordinator for Health Information Technology, David J. Brailer, M.D., Ph.D. “The panelists’ recommendations verify the need for shared public and private investment and ongoing collaboration to achieve the President’s vision for widespread health information technology adoption.”

Panelists specifically suggested several actions the government could take to help lead the adoption of health IT. Specific recommendations included: making changes to policies and programs that would take the form of incentives and rewards for health IT adoption in the private industry; continue to strengthen efforts to coordinate the adoption and use of interoperable health IT across the federal enterprise; take savings from streamlining investments and reinvest them back into additional health IT implementation; continue to promote the adoption of harmonized standards; and, finally, continue funding demonstrations and evaluations of interoperable health IT.

CEOs who participated on the HIT Leadership Panel included: CEO of the FedEx Corporation, Frederick Smith; CEO of General Motors, Rick Wagoner; CEO of International Paper, John Faraci; CEO of Johnson Controls, John Barth; CEO of Target Corporation, Robert J. Ulrich; CEO of Pepsico, Steve Reinemund; CEO of Procter & Gamble, Alan G. Lafley; CEO of Wells Fargo, Richard Kovacevich; and David Glass (former CEO) of Wal-Mart Stores, Inc.

A copy of the “Health Information Technology Leadership Panel: Final Report” is available at http://www.hhs.gov/healthit/HITFinalReport.pdf.