Tech investment seen as critical to health care reform

Investing in information technology can improve patient care and reduce the cost of health care nationwide, according to outgoing Democratic National Committee Chairman Howard Dean. But the cost of launching new IT systems, he said, could prove crippling for small medical practices and rural physicians.

Speaking at the eHealth Initiative's annual conference in Washington on Thursday, Dean endorsed President-elect Barack Obama's plan to ensure universal health care coverage. He also discussed the importance and challenges of using more technology in the medical field.

Information technology "can result in better patient care," he said. "It's really important and can save a lot of money." One example Dean noted was synchronized patient records. Instead of paper health records, which often are duplicated by various providers or are incomplete, Dean advocated a synchronized network that would recall all of a patient's medical care with just a few clicks. The system would help prevent redundant procedures and save employees time spent faxing or delivering patient records to another office.

But one reason the technology is not widely embraced is the steep initial outlay required. Dean said it can cost a three-person practice as much as $30,000 to set up the necessary software, a figure that would be prohibitive for many small or rural practices. He suggested the government help with that investment but did not specify how.

Smaller practices "can't afford the outlays, but it's really important to do it, especially for Americans in underserved areas," he said.

Dean noted that his top priority was to pass a national health care plan, but he also hoped to open a debate about the role of IT in health care. Collections and billing are areas where IT could improve efficiency, he said.

"In my hospital, there are more people in billing than in the [emergency room]. We've got to use IT to reduce extra medical costs," said Dean, noting that a uniform system of data collection and record-keeping would reduce the backlog at most hospital accounting departments.

Dean estimated the cost of providing national health care would be $65 billion, but said it would be worth it at even twice that price.

"We just spent $125 billion bailing out AIG," he said. "I'd say we can afford [national health care] a lot more than AIG."