March 28, 2002
GE BUYS E-HEALTH
CAPABILITIES AT YARD SALE PRICES
Hardly anyone seems to have noticed,
Electric has just completed its purchase of MedicaLogic
(formerly Medscape), an eHealth medical record company.
"It's a strategically important
acquisition for us, said Greg Lucier, President and CEO of GE
Medical Systems Information Technologies. "Our expansion into the
ambulatory setting is a `first' for GE, and because more patients
experience care in this setting than any other in healthcare, it's
really an opportunity for us to make a major transformation in the
So? What is General Electric up to?
Let's connect the dots.
...remember that readers of
Fortune Magazine voted GE the #1 most admired company in the US?
Again! This company knows how to execute.
Remember former CEO Jack
Welch's adage that GE should not participate in a market unless it
can be the number 1 or 2 company?
...draw your own conclusions.
Is the purchase of MedicaLogic a good
move for GE? YES!!
What timing! They
waited until the hype about eHealth has passed, yet are early
enough to reap the long-term rewards.
It positions GE for
the future. Over the past 50 years the center of the health care
universe has revolved around the hospital and physician's office.
The arrival of telehealth, wireless, and handheld technologies
point to an imminent shift. The center of the health care universe
is about to become the patient's home, or even "wherever the
patient happens to be."
It is highly
complementary to GE's emphasis on developing health care work flow
automation software across the continuum of care.
It rounds out GE's
abilities to compete more directly in the health care information
technology and personal health record markets.
What a bargain!
In short, it continues
to position GE as the closest thing yet to a gorilla in health
"Why is GE Buying MedicaLogic?"
technology in practice, March 2002
GE Press Release
DISEASE MANAGEMENT CONTRACTING & PARTNERSHIPS
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DISEASE MANAGEMENT CONTRACTING &
May 23-24, 2002 -- Omni Parker House -- Boston, Massachusetts
A two-day event focusing on optimizing disease management clinical
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The Original Symposium that unites health plans, employers,
providers, unions and state Medicaid programs.
Featuring, hands-on case studies of
best practice industry achievements.
REGISTER NOW for 25%
DISCOUNT! Contact Maria Cianflone Phone: 312.780.0700 ext.175
CGE&Y REPORTS ON
TOP 10 BUSINESS ISSUES AND PAYOR WEB SITE EVOLUTION
"Health Care's Top Ten Business Issues for 2002"
Cap Gemini Ernst & Young (CGE&Y), February 2002
(free registration required)
The Top 10 issues:
1) Disaster preparedness -- ensuring
business continuity after 9/11
2) Controlling health costs --
sharing the burden
3) Redefining "not-for-profit" --
surviving in a soft economy
4) HIPAA compliance delivers ROI --
finding the silver lining in the red tape
5) IT outsourcing - a strategic asset
6) Privacy and electronic medical
records -- protecting patient rights in the new age of information
7) Outcomes management -- the next
generation of disease management
...Many of the "old world" techniques of disease management --
utilization review, referral management, case management, and
network design and contracting, for example -- have not yielded the
predicted results. ...health providers and patients are finding new
ways to work together to improve health outcomes through
outcomes-focused medical management. This approach focuses on
reducing not only administrative costs but on the actual cost of
8) Drug production and the FDA --
ensuring the integrity of the manufacturing process
9) Drug companies take a
consumer-first approach -- using CRM techniques for a competitive
10) Medical error reduction --
automating for patient safety
"How Health Plans are Using the Internet to Reach Customers: A
Survey of Payor Web Sites"
Cap Gemini Ernst & Young, March 2002
1) Strategically, payors view their
Web sites as a core part of their business.
2) Payors have increased their online
capabilities and level of interaction.
3) Payors are using their Web sites
to enhance administrative efficiency, rather than develop new
4) Most payors have not integrated
their online and legacy systems, and as a result have yet to achieve
significant savings from eCommerce.
5) HIPAA compliance is viewed as a
longer-term Web initiative.
IMPORTANT QUESTIONS ABOUT HEALTH CARE CONSUMERISM -- "IS ANYONE
ACTUALLY PAYING ATTENTION?"
for Health Care -- Is Anyone Checking Them?"
RAND Health, March 2002
This issue brief discusses:
How information for
report cards is gathered and organized;
Who uses them and who
Why people don't use
report cards; and
What might be done to
make them more user friendly?
EVALUATION -- "SHOW ME THE EVIDENCE"
Telehealth and Chronic Medical Conditions: Critical Review, Key
Issues, and Future Directions "
Rehabilitation Psychology, February 2002
Conclusions: The number of controlled trials examining
telecommunication-based interventions for those with chronic
disabilities remains small. Future research should endeavor to
increase sample size, use conceptually meaningful control groups,
focus on cost utility, and investigate which types of
telecommunication-based interventions provide the best match with
THEME ISSUE -
TRUSTING HEALTH INFORMATION ON THE INTERNET
Journal; March 9, 2002
Articles and editorials address a range of topics:
Unvalidated tools to
rate web health information are proliferating
Internet users say and
do different things about quality
Popular breast cancer
websites not necessarily of higher quality
websites may be inaccurate
Quality of health
information on the internet has improved
Consumers should be
encouraged to search critically
Internet law is
MEDICARE PILOT PROJECTS IN DISEASE MANAGEMENT
"Medicare -- Disease Management for the Masses"
Health Leaders, March 2002
Project for Disease Management for Severely Chronically Ill Medicare
Centers for Medicare & Medicaid Services (CMS)
"CMS Seeks A Few Brave Firms to Test Treacherous Waters"
Modern Healthcare; March 4, 2002
COSTS REMAINS A TOP EMPLOYER PRIORITY
"Health Costs Top Benefits Specialists' Concerns -- Again!"
Deloitte & Touche
Human Capital I.Q., March 2002
For the third year in a row, controlling health care costs is the
top concern of employee benefits specialists.
New Rules for Managing Health Costs:
Highlights from the Seventh Annual WBGH/Watson Wyatt Survey
There are four key findings from this year's survey:
1) Health care has become a total business issue. ...It is also
forcing company management at the highest levels to come to grips
with the fact that the very survival of their firms is at stake
2) No single solution will fix the
problem. ...companies are adopting a wide variety of leading-edge
strategies, including consumerism, purchasing disease management
programs separate from a health plan and use of clinical risk
adjustment in plan selection and pricing. They are also increasingly
bringing the business discipline of using Return on Investment (ROI)
analysis to drive decisions.
3) Employers need to get employees
more involved in their health care needs and costs.
4) To successfully manage costs,
companies need to apply the same business discipline they apply in
their core business functions.
"Making Disease Management Work: Selecting Appropriate Illnesses to
Cover and Encouraging Participation Can Boost ROI"
HR Magazine, January 2002
Evolution of Disease Management for the 21st Century"
Minnesota Physician, January 2002
Enhances DM Tools"
HR Magazine, January 2002
PERSPECTIVES FROM CHCS
Incentives Effective in Improving the Performance of Managed Care
Center for Health Care Strategies (CHCS), March 2002
Financial Barriers to Improving Asthma Care for Children"
Center for Health Care Strategies, March 2002
Disclosure -- No clients were
mentioned this issue.
E-CareManagement News is an
e-newsletter that tracks a major change in health care and managed
care—the paradigm shift from “managing cost” to “managing care”.
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