Monday, April 27, 2009

Physician Practices become a large Healthcare-IT market in USA

Obama’s incentives package has put power in the hands of Physicians.So what is expected to change:
1. Pharmacy Co: Physician’s reliance on pharmacy companies for drugeducation updates will reduce because they will get direct access tolatest version of electronic drug databases in the EMR. Many EMR will have CPOE and Medication Management built into it, which will guardagainst unnecessary/incorrect prescriptions. Cross-selling and Up-selling of drugs will get minimized. However the drug compliance willgo up in chronic disease management.
2. Insurance: Private sector Health Plans will have to compete withPublic sector Health Plans for their bread-and-butter. US have a very large aging population such as known to be the ultimate "Baby Boomers".
3. Hospitals: Will have to figure out how they can increase theirMedicare and Medicaid practice. They will also have to depend more on physicians that already have a greater mix of Medicare and Medicaid practice.
4. CDC: Public Health initiatives and Disease Surveillance will gain power because they will start getting valuable Public Health datathrough Medicare and Medicaid. So far private enterprises did not want to share member/patient/outcomes data.
5. Healthcare Economics: will shift towards measuring clinical outcomes rather than business value. Public Health, Disease Managementand Preventive Medicine will gain because US has a very large agingpopulation (again the Baby Boomers).
6. M&A: New business models and major consolidations should be expected. I can see Pharmacy companies and Insurance companies buying out EMR/EHRS, Healthcare-IT companies initially!

There was certainly room to be skeptical about what one President can change. However Obama is surely exercising the power vested in the highest office of US. This looks like the dawn of a new era in US Healthcare. I can seeUS moving towards a Social Medicine practice i.e. Canada eHealth and NHS UK model.

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