recommended reading

Health information exchanges face significant financial challenges

Christian Delbert/Shutterstock.com

Concerns about competition could undercut development and long-term sustainability of health information exchanges, according to preliminary findings of a survey by the eHealth Initiative.

Of 126 exchanges that responded to the group’s 2012 survey, 36 said competition from other HIEs was an important challenge, and 50 worried about competition from health IT vendors with exchange capabilities. More than half said stakeholders’ concerns could potentially have an impact on their participation in exchanges, according to the preliminary findings.

“Given the importance of stakeholder buy-in to sustainability, competition between data exchanges and health IT vendors over smaller stakeholder populations could impact development in the area,” the initiative said. “Similarly, these findings suggest that some stakeholders may not engage in data exchange because of fear of losing revenue . . . It will be important for groups to create secure technical infrastructure and policies that can help allay fears from stakeholders.”

The group also concluded that some federally funded HIEs risk going out of business if they don’t develop sustainable business models after funding from the Health Information Technology for Economic and Clinical Health (HITECH) Act ends.

All exchanges need to look at a variety of revenue-generation methods to improve sustainability, the report preliminarily concludes. “There needs to be more development in other areas of revenue generation, such as transaction fees, assessment fees and membership, for HIEs to truly become sustainable,” the initiative said.

Other preliminary findings include:

  • Top challenges cited by stakeholders are privacy, developing a sustainable business model, lack of funding, concerns about their competitive position in the marketplace, addressing technical barriers and addressing government policy and mandates.
  • More than a quarter of the HIEs that don’t already support Accountable Care Organizations or Patient Centered Medical Homes expect to do so in the future.
  • Primary revenue sources are membership fees and government funding.

A link to a PDF of the preliminary report is available under “News” on the eHealth Initiative home page.

Threatwatch Alert

Stolen laptop

Wireless Heart Monitor Maker to Pay $2.5M Settlement to HHS After Laptop Stolen

See threatwatch report

JOIN THE DISCUSSION

Close [ x ] More from Nextgov
 
 

Thank you for subscribing to newsletters from Nextgov.com.
We think these reports might interest you:

  • Modernizing IT for Mission Success

    Surveying Federal and Defense Leaders on Priorities and Challenges at the Tactical Edge

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • Effective Ransomware Response

    This whitepaper provides an overview and understanding of ransomware and how to successfully combat it.

    Download
  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download

When you download a report, your information may be shared with the underwriters of that document.