investments

Four big IT companies have won federal contracts to create interoperable regional networks. The Department of Health and Human Services awarded contracts worth $18.6 million to Accenture, IBM, Northrup Grumann and Computer Sciences Corp. yesterday. All four companies have said they will make "major" investments of their own as part of the project. Some observers believe the contacts will give the companies an edge as the market for electronic medical records matures, but there remains …

Entering an area of healthcare law expected to become a hot topic, IBM announced a privacy policy covering employee genetic information. The company pledged not to use genetic testing in hiring decisions or to determine eligibility for its healthcare or benefits plans. The announcement is said to be the first of its kind by a major corporation. Experts said the announcement establishes an important precedent.

"What IBM is doing is significant because you have a big, leadership …

The investigation into Senate Majority Leader Bill Frist's recent sale of shares in healthcare giant HCA is no more than a political witch hunt, argue some observers. "The case is a non-starter that has political appeal," said Jacob Frenkel of Shulman Rogers, a former SEC prosecutor, in an interview in today's USA Today. But not everybody agrees. The Wall Street Journal reports that others are questioning how blind the blind trust shielding Frist's investments …

Buoyed by the success of its start ups, the University of Pittsburgh Medical Center is considering expanding its portfolio of small companies pursuing promising medical technologies. Last week, Dutch giant Philips said it would pay $280 million to acquire Stentor, a California-based diagnostic imaging company built around an idea developed by a UPMC radiologist. UPMC is weighing investments in a company that makes a laser scalpel about the size of a pen and another firm which is …

It is probably a longshot to ever pass, but legislation introduced on Monday by Senators Debbie Stabenow (D-Mich.) and Olympia Snowe (R-Maine) would authorize $4.5 billion in grants to healthcare providers to adopt interoperable technology. Grants would be capped at $1 million for hospitals and $15,000 per physician in group practices (the commonly assumed per physician cost of an EMR. The bill would also allow hospitals and other healthcare companies to write-off IT investments, a serious incentive.

- see this story from Health Data Management

One of the more serious difficulties involved in encouraging healthcare companies to participate in data sharing projects lies in getting them to rethink attitudes about data as proprietary company property. The Wisconsin Health Information Exchange (WHIE) has been able to drive participation by convincing many to rethink the ownership equation, at least slightly. Without full access to patient information, they point out, IT investments are unlikely to ever fully pay off.

- see this story from Wisconsin Technology