If you wonder where I’ve been, I’ve, for one thing, been blogging a bit for (very little) pay over at Forbes.com and writing a lengthy cover story for the September issue of Healthcare IT News.
The Healthcare IT News piece actually breaks down into a fairly short lead story and several sidebars, which aren’t all that evident from the traditional Web version. (The digital edition has everything.) For the sake of convenience, here are links to all elements of the cover package:
Happy reading, and happy Labor Day weekend.
The next round of health IT consolidation is on. Today, Cerner confirmed the rumor that had been swirling for a couple of weeks, that it will acquire Siemens Health Services, the health IT business of Siemens AG, for $1.3 billion in cash.
Cerner and Siemens also announced a strategic alliance to, according to the press release, ” jointly invest in innovative projects that integrate health IT with medical technologies for the purpose of enhancing workflows and improving clinical outcomes.” Each company will commit as much as $50 million to the alliance over the next three years, with an initial focus on integrating images and medical devices with EHR data in cardiology, Cerner says.
The device integration should come as no surprise. In healthcare, Siemens has always been, first and foremost, a medical device company. Health IT came later, by virtue of Siemens’ acquisition of Shared Medical Systems in 2000 for 2.1 billion. (Adjusting for inflation, that deal would cost $2.9 billion today, meaning that either Siemens overpaid in 2000 or the health IT assets lost more than half their value in the past 14 years.) Cerner has been selling medical devices for integration with its EHR products for several years, but nobody has confused Cerner for a device company. The two companies should complement each other well in this regard.
It’s no surprise that Siemens wanted out of the health IT business, either. Cerner and Epic have been dominating the enterprise EHR market in recent years, winning all kinds of replacement and upgrade business from health systems that previously had used Siemens, GE Healthcare, Meditech and Eclipsys technology.
Eclipsys, of course, merged with Allscripts in 2010, in a deal also worth $1.3 billion, and the combined company struggled to the point that the board forced out several top executives two years later. That was the last major acquisition in enterprise health IT until today. I don’t expect it to be the last, though I won’t predict anything other than that Epic will continue its strategy of growing organically and that many companies, particularly ambulatory vendors, will drop out rather than pursuing federal certification to the 2014 standards.
The market has been shaping up to be a battle between Cerner and Epic for a while, though the formation of the CommonWell Health Alliance a year and a half ago — now including Cerner, Allscripts, Athenahealth, Greenway Health, McKesson, Sunquest and CPSI — shows that Epic is everybody else’s No. 1 competitor.
Cerner and Siemens say the deal should close early next year.
“We live in a golden era of digital toys,” noted comedian Stephen Colbert on “The Colbert Report” last Monday.
Indeed, some of the digital health and fitness products out there are rather ridiculous, even the popular ones, and we’re hearing just that at some actual health IT events. At last month’s WTN Media Digital Healthcare Conference in Madison, Wis., Adam Pellegrini, vice president of digital health at Walgreens, poked fun at programs that reward people for allegedly exercising. “You could put a pedometer on your dog and get 10,000 steps while watching TV,” Pellegrini joked.
Colbert, who certainly was not present at that Madison meeting, got the same idea about the Fitbit activity tracker. “Last week, I wanted to run a marathon, so I strapped this bad boy to a paint shaker for about 20 minutes,” he said.
Colbert then addressed the Vessyl digital cup, which records data on the beverages each user consumes. “That level of information was previously available only on the can you just poured it out of,” he said. He then pointed out that Vessyl only tracks half of the hydration equation, the input, so he announced the pre-release of his own “product,” Toylyt.
Watch the clip below.
I’m back from an extended break, though hardly a vacation. I spent 11 days this month cycling from Chicago to Washington to raise awareness of multiple system atrophy, the rare neurodegenerative disease that killed my father in 2012. For my first post in more than two weeks, I’ll keep it simple but important, namely with an update on Health eVillages, the program I sit on the advisory board of, as well as some vaguely related news from Qualcomm.
First off, Health eVillages this week officially welcomed five new board members: Brad Fluegel, Spencer Warden, Mike Hamilton, Lorri L. Jean and Ulya Khan. Here’s the press release in full:
FOR IMMEDIATE RELEASE
Health eVillages Welcomes Five Renowned Executives to Advisory Board
Will Provide Strategic Guidance to Bring Quality Healthcare to People in Underserved Areas
READING, MA – (July 16, 2014) -Health eVillages , a program founded by Donato Tramuto andPhysicians Interactive in partnership with the not-for-profit Robert F. Kennedy Center for Justice & Human Rights (RFK Center), has appointed five new members to its Advisory Board.
Health eVillages provides iPod®, iPad® and other handheld devices equipped with specialized reference and clinical decision support tools to improve primary and preventive healthcare in underserved areas around the world.
“We are proud to announce the addition of these five fantastic non-profit and corporate executives to our Advisory Board,” said Donato Tramuto, the Founder of Health eVillages. “As HealtheVillages continues to grow its presence across the globe, we are excited to be able to mine the breadth and depth of experience that Brad Fluegel, Spencer Warden, Mike Hamilton, Lorri L. Jean and Ulya Khan bring to the table. We look forward to using their guidance to help shape innovative, strategic approaches to bringing quality healthcare to people in some of the most underserved areas around the world.”
Since its inception in 2011, Health eVillages has made a significant impact in improving access to critical, live-saving medical information worldwide, launching programs in Africa, Central America, Pacific nations, the Caribbean and areas of Louisiana affected by the Gulf oil spill.
The most recent additions to the Health eVillages Advisory Board include:
Brad Fluegel is the Senior Vice President and Chief Strategy Officer at Walgreens Co. Prior to coming to Walgreens in 2012, Fluegel was an executive at several prominent healthcare companies, including Wellpoint, Aetna, Inc., United Health Group and Tillinghast-Towers Perrin. He also serves on the Board of Directors of Metropolitan Jewish Health System in New York City,Health Integrated, Inc., and Performant Financial Corp.
Spencer Warden is the Provider Engagement Lead at Dabo Health Inc., which provides a community healthcare platform to view and track improvement in key performance metrics and allows for collaboration across hospitals and healthcare systems. Spencer’s responsibilities at Dabo Health include business development, corporate strategy, and strategic partnerships in the Hospital and Payer marketplace. He previously worked for Eli Lilly as a Sales Representative in San Francisco’s Neuroscience sleeve.
Mike Hamilton , President of Engagement at Blood: Water Mission, has received numerous honors for his work with youth and children, especially for orphan crisis issues and healthcare needs in Africa. Hamilton came to Blood: Water after 26 years in intercollegiate athletics at Clemson University, Wake Forest University, and the University of Tennessee. He also served on the board for Show Hope and chaired the Knoxville Chamber Partnership and the local United Way Chapter in Knoxville.
Lorri L. Jean is a nationally recognized leader in the lesbian, gay, bisexual and transgender (“LGBT”) civil rights movement. She serves as CEO of the L.A. Gay & Lesbian Center, the world’s largest LGBT organization. Previously, Jean served as the Executive Director of the National Gay and Lesbian Task Force. Jean was the first openly gay or lesbian person to receive a top secret security clearance from the Central Intelligence Agency, and with her appointment in 1989 as Deputy Regional Director of the Federal Emergency Management Agency (“FEMA”), she became the highest-ranking openly gay or lesbian person in the Federal government. OUT Magazine has twice named her one of the 50 most powerful gay people in the nation and Los Angeles Magazine named her one of the 100 most influential people in Los Angeles.
Ulya Khan, the Chief Operating Officer at Physicians Interactive, has more than 20 years of experience in technology, data and operations. Prior to joining Physicians Interactive, Khan held several leadership positions including Chief Operating Officer and Chief Of Staff at Thomson Reuters in London and New York City, where she was instrumental in building and exponentially growing several businesses and managing global teams across Asia, Europe and the Americas.
Additional members of the Health eVillages Advisory Board include:
Donato Tramuto, Founder, CEO and Vice Chairman of Physicians Interactive
Steve Andrzejewski, Chief Executive Officer of Spiritus Pharmaceuticals
John Boyer, President and General Manager of MAXIMUS Federal Services
Dr. Tim Bristol, Nurse Educator
Caleb DesRosiers, Healthcare Counsel at Foley Hoag LLP
Greg Divis, President and CEO of KV Pharmaceutical
Dr. Mary Jane England , Professor at Boston University School of Public Health
Mark Friess, CEO and Founder, WelVU, Inc.
Dr. Antoinette Hays, President, Regis College
Kerry Kennedy, President of the RFK Center for Justice and Human Rights
Devin Paullin, Executive Vice President of Corporate Business Development of Physicians Interactive
Derek Rago, Vice President of Marketing & Strategy, McKesson Patient Relationship Solutions
Glen Tullman, Managing Director, 7Wire Ventures
Neil Versel , Freelance Healthcare Journalist
About Health eVillages
Health eVillages, a program of the not-for-profit Robert F. Kennedy Center for Justice & Human Rights and Physicians Interactive, provides state-of-the-art mobile health technology including medical reference and clinical decision support resources to medical professionals in the most challenging clinical environments around the world. For more information about Health eVillages, please visit http://www.healthevillages.org/.
About Physicians Interactive
Headquartered in Reading, MA, PI aspires to use the power of worldwide networks of healthcare professionals and life sciences companies together in ways that will change the practice and business of medicine for the better. PI’s value proposition is to offer the life science industry a low-cost, virtual, multi-channel marketing approach that can be used to supplement currently promoted products, as well as non-promoted and orphaned products, that deliver benefits to physicians and patients. A key focus is providing services that fit into physicians’ and healthcare professionals’ daily workflow at the point-of-care when they make diagnosis, treatment and prescribing decisions. More information can be found at www.PhysiciansInteractive.com.
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Interested in seeing the kind of difference Health eVillages is making in remote parts of the world? Check out this short video about “moving the needle on global health.”
In somewhat related news, Qualcomm Wireless Reach and Trice Imaging reported last week how their mobile ultrasound technology saved significant amounts of money, time and, ultimately, lives in prenatal care, at three small, rural health clinics in Morocco. Click here to read the case study.
The following ad has popped up several times on my mobile Facebook app recently:
That’s from Adelphi University in Garden City, N.Y., and the first sentence of that ad is absolutely false, not to mention poorly written. There is no government mandate for any healthcare facility to go paperless at all, much less by 2015.
As people in health IT and in healthcare management probably know, the federal Meaningful Use EHR incentive program calls for Medicare penalties starting next year for any provider that hasn’t achieved at least Stage 1 of Meaningful Use. But that’s not a mandate; hospitals and other providers still have the option of participating. Those who don’t see Medicare patients don’t face penalties anyway.
Even those that are able to meet all the Meaningful Use requirements still don’t have to be paperless, at least not according to the Stage 1 and Stage 2 rules. Nor have I seen any evidence that Stage 3 would contain such language, and even if it does, that phase does not start until 2017.
There are plenty of reasons why those who start work on a master’s in health informatics this year will be very much in demand next year. Why does Adelphi need to mislead people in an apparent attempt to create demand for its program?