Study Says Medical Device Interoperability Could Save $30B a Year

Like a proverbial Tower of Babel, hospitals nowadays come with medical devices that are unable to share critical data—but innovation enabling health care equipment and systems to share information could save more than $30 billion a year in healthcare costs.

That’s the conclusion of a new analysis conducted by the San Diego-based West Health Institute. The institute’s chief medical and science officer, Joseph M. Smith, highlighted the study yesterday in testimony before Congress. The House Energy and Commerce Subcommittee on Health has been holding hearings this week to look at how the FDA should regulate medical applications on smartphones and tablets. The committee concludes its third day of hearings today.

“Our healthcare delivery system is exceeding both our nation’s budget and our providers’ bandwidth without meeting our patients’ needs,” Smith told the panel yesterday. “We see an enormous opportunity to use information technology devices, innovation, mobile and wireless technology, and smart and learning systems to both transform healthcare delivery and to create empowered and informed consumers of healthcare.”

The committee, which oversees both the FDA and the Department of Health and Human Services, is looking specifically at how regulation affects patients, physicians, and innovators who are looking to capitalize on the growing field of mobile health and medical apps. In a March 1 letter to FDA Commissioner Margaret Hamburg, the committee questioned whether the Patient Protection and Affordable Care Act allows the FDA to define smartphones and tablets with health-related apps as medical devices—and if that means they could be taxed as medical devices under the healthcare law.

In a statement, the West Health Institute says patients in a typical hospital intensive care unit can be treated by as many as 12 different medical devices, including defibrillators, electrocardiographs, vital sign monitors, ventilators, and infusion pumps. Such devices are typically purchased from different manufacturers, and often require costly IT customization so their various functions can be integrated. Even so, the potential for miscommunication poses a risk to patient care.

While there has been some progress in developing interoperability standards, Smith says the healthcare industry still falls short of adoption.

In addition to saving healthcare dollars, the West Health Institute says functional interoperability would help improve patient care and help prevent adverse events. For example, an infusion pump providing a cancer patient’s pain medication could ensure that a patient isn’t being over-medicated by sharing data with the patient’s vital sign monitor. Such equipment is typically independent and requires multiple manual settings, which increases the potential for error.

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.