Thilman Filippini, along with industry analysts, applauds Bush initiative to update healthcare IT

While political posturing over Social Security dominates headlines, one of President Bush's more modest "reform" proposals is focused on an issue no one disputes: the need for IT overhaul in health care.

Announced at the Cleveland Clinic, the $125 million initiative aims to convert all Medicaid/Medicare records to electronic systems. A parallel effort by the Department of Health and Human Services will bring all prescriptions on-line by 2006.

Currently, these largely paperbound and labor-intensive record systems are among the more egregious examples, experts say, of the challenge facing health administrators.

A number of industry analysts and leading benefits-plan consultants were quick to praise the move. "This new federal effort should provide even greater impetus in the private healthcare sector too," said Tom Filippini of Thilman Filippini.

"Advanced electronic data systems and on-line technologies are two areas where we've found tremendous cost-savings for employer-clients," Filippini said.

Currently, most government-sponsored programs such as Medicaid and Medicare rely largely on paperbound and extremely labor-intensive record systems. These are among the more egregious examples, analysts say, of the challenge facing many health administrators.

Across the entire health industry, studies have indicated that medical errors and information redundancies account for 20% or more of annual expenditures – costing employers and insurers untold millions.

Urging the health care industry to follow his lead, Bush said advanced IT will "save money and save lives."

"Most industries use information technology to make their businesses more cost effective, more efficient and productive – but the truth of the matter is health care hasn't," Bush said.