The Health Information Network Connection (THINCTM)
Good morning members of the Subcommittee.
My name is Benjamin Curtis. I am Vice President of Business Development for The Health Information Network Connection, or THINCTM as we are commonly referred. I also serve as the current Chairperson of AFEHCT, the Association For Electronic Health Care Transactions.
I thank you for the opportunity to address the subcommittee. On behalf of the organizations I represent, we are pleased to know that you recognize the natural tensions which exist between those who generate the information which goes into an electronic health care transaction and those who use the information.
THINCTM is new state-of-the-art technology electronic health information network that allows physicians, hospitals, diagnostics centers, laboratories, payers and other health care entities to access their patients' clinical and insurance-related information through their desktop computers. THINCTM facilitates the electronic exchange of business and patent-care data through a private electronic "intranet" system. Our company, along with the other members of AFEHCT support the health care industry in its efforts to streamline the exchange of information in order to reduce costs and improve the efficiency and management of patient care.
This morning I am joined by members of AFEHCT who represent organizations that fulfill various functions in the process of generating and transporting electronic health care transactions. AFEHCT is a trade association of vendors and suppliers to the health care EDI industry. Our membership includes health care information clearinghouses, software vendors, payer organizations, value-added networks, banking and credit card companies.
The organizations I represent have several expectations for the results of the Administrative Simplification standards requirements in the Health Insurance Portability and Accountability Act of 1996. However, I will state three of the most commonly expectations: 1) passage of the Act provides an incentive to the health care industry to take advantage of the multiple benefits of utilizing standard transactions and transaction sets to communicate data electronically; 2) this is an opportunity for the development and use of a uniform implementation process of the standards intended for transmitting and receiving electronic data; 3) increased availability, and even more significant will be the increased use of electronic health care transactions.
The outcome of the standards requirements of the Act will mostly affect THINCTM and other members of AFEHCT in a positive manner. It is the part of our association's mission to promote the use of electronic health care transactions. While alternative methods to electronically exchange health care data may exist, electronic data interchange (EDI) is believed to be the most beneficial method. Other industry's such as the banking and pharmaceutical industries have taking advantage of the process.
We believe the increased availability of transaction standards and accompanying implementation guides will assist small business survive in an extremely competitive market. The existing market fragmentation is likely to decrease which will allow the end-users of the data to become more secure in their decision of selecting a vendor. Too often, the end-user is forced to select a vendor that provides limited functionality. As a result, he or she must engage the services of another vendor to augment the desired functionality. The possible negative outcome will be the continued absorption of the small health care EDI company or the small software vendor. Some market analyst may argue that the Act will increase the rate of industry consolidation.
AFEHCT was one the many organizations that sought the passage of federal legislation that would define the parameters and create incentives for the expanded use of electronic health care transactions. Particularly, the use of standards to accomplish this task. It was through AFEHCT's diligence that implementation guides became a point of consideration within the Act. Additionally, it was the members of AFEHCT that began to make the use of electronic health care transactions as a method to reduce the cost of administering health care an issue for Congress.
We applaud the process being undertaken by the Department of Health and Human Services to carry out the Administrative Simplification requirements of the law. However, we were originally concerned that the Department may exclusively consult with the four organizations explicitly listed in the Health Insurance Portability and Accountability Act of 1996. This is primarily due to the fact that none of those organizations represent the broad spectrum of concerns raised by the members of AFEHCT.
I am pleased to know that the Department is reaching out to other interested stockholders with direct responsibility for implementing all of the provisions listed in the Act. The organizations I represent welcome the opportunity to consult with the Department and its various agencies and committees. In fact, AFEHCT has prepared an extremely detailed presentation designed to familiarize government entities with the various types of organizations and their relationships, who play a significant role in the creation, utilization and transportation of electronic health care data. We would be delighted to discuss making this available to you.
The members of AFEHCT experience the customary problems of implementing change as any other business entity experiences. There is however the additional anguish of convincing our customers that the changes being implemented are for their benefit and the benefit of their customers. Unfortunately, the immediate administrative simplification provisions lend themselves to financial transactions. This is understandably necessary because clinical transactions are much more complex than financial transactions. The readily available information required to populate a clinical and financial transaction resides on separate systems within an institution of physicians office. Often this data resides at a separate site.
From The Health Information Network Connection's perspective, this does not present problem. We have devised a solution that will provide access to this data, regardless of physical location, in order to enable the increased efficiency of delivering health care. It supports the intense needs of working within a managed care environment. Most importantly, our solution, based proven strategies, will ultimately result in the improvement of patient care.
In conclusion, the goal of administrative simplification can best be achieved while meeting the business needs of all stockholders by continuing to allow the stockholders the opportunity to be heard prior to formulating policies. It is a proven fact that including one in the process of developing the rules by which one is expected to play, is far more productive than dictating behavior.
Thank you for the opportunity to present our perspectives on critical issues associated with administrative simplication. The Association For Electronic Health Care Transactions (AFEHCT) and The Health Information Network Connection (THINCTM) look forward to a continued productive relationship with the National Committee on Vital and Health Statistics.