Tenet Healthcare Corp. has announced it swung to a third-quarter profit on an investment sales gain, but lowered its outlook as patients struggled to pay bills amid a worsening economy. The company earned $104 million, or 22 cents per share, after a loss of $59 million, or 12 cents per share, a year earlier. Revenue rose 6% to $2.16 billion. Excluding a $140 million gain from the sale of an investment and other items, the company lost 6 cents per share. That and the outlook sent shares plunging more than 25% to $3.01 during the trading session, their lowest point in a decade.
Hundreds of healthcare delegates from more than 50 countries, including the U.S., U.K., Australia, Brazil, Germany, France, and Singapore, will gather this week for the Dubai Congress on Anti-Aging and Aesthetic Medicine in India. The event will feature information about new innovations and treatment solutions said to prevent and even reverse the signs of aging and degeneration, and emphasize the importance of education in the aesthetic anti-aging market.
Star Hospitals has launched a new medical tourism Web site that offers up-to-the-minute information about medical travel. The new site goes beyond the North American medical tourism service's existing benefits, as it features a "live chat" function with facility doctors to address patients' questions about traveling overseas for healthcare.
Expanding last week's rally, stocks continued an upward surge Tuesday morning while hopeful voters cast ballots in an historic election. Lending rates and oil prices are improving, as U.S. and world leaders work to curb a worldwide recession.
I attended a town hall meeting recently featuring senior executives from Google and Microsoft, who talked about their respective efforts in the area of personal health records. I expected to hear the usual chatter about why the PHR is good and how it will revolutionize healthcare. While I did hear some of that, I also learned that even the two biggest players in the game know they still have a long way to go before the full potential of the PHR is achieved.
Gaining consumer trust seems to the biggest problem facing both Google Health and Microsoft HealthVault. Despite continued assurances about the security and safety of the information from both companies, it seems some of us aren't quite ready to put our lab results on the Web. Which is somewhat surprising considering all of the personal information most of us already put out there, says Alfred Spector, vice president of research and special initiatives at Google. "We bank online, we join social networking sites, information about you is out there. Both of us (Microsoft and Google) have brand reputations to protect. We have extensive privacy notices in place. What would we gain from not abiding by them?"
Spector says that while Google Health will not advertise based on patient data, resell it, data mine it, or repurpose it in an way, the company will use "generalized" information to offer consumers products they may find useful. Microsoft Health Vault has adopted a similar policy , says Peter Neupert, corporate vice president for the Health Solutions Group at Microsoft Corp.
Notice that Spector said "we" have brand reputations to protect and "we" have privacy notices in place and "we" will abide by them. There was a whole lot of "combined efforts" talk at the meeting, which caught me a little off guard considering how much has been made of the so-called health content war between HealthVault and Google Health. For example, I read a whole host of media reports last week saying Microsoft has pulled ahead in the race to be No. 1, thanks to its newly announced partnership with Connecticut-based health benefits provider Aetna (which, by the way, I found to be a particularly amusing announcement thanks to Aetna CEO Ronald Williams' less-than-flattering comments comments about Google and Microsoft almost exactly a year ago).
But, rather than focusing on competing for what Neupert says is basically a zero market share anyway (based on users), we should be focused on how to improve both products and, more importantly, get consumer buy-in. "Google, Microsoft, Epic, we should all be involved at this point. The more involvement the better; we can worry about competition later. Today, the issue is educating consumers about why this product is valuable to them," he says.
That value is clear and real, not just for the consumer, but for the entire industry, John Halamka, MD, CIO of Harvard Medical School and Beth Israel Deaconess Medical Center told me during a conversation I had with him last week. "Patients should be stewards of their own data. The PHR allows them to have complete control over the flow of that data. This is a very important step toward greater consumer awareness and responsibility," he says.
For the industry as a whole, it's also a good way to address the complex policy and security issues surrounding the dissemination of private medical information. "There are 50 different privacy policies, and they are called states. So if you want to exchange data, even if you have the standards, technology, and architecture, if you don't have policies that allow sharing or allow patient privacy preferences to be adjudicated, then it's tough," says Halamka, who is part of the Google Advisory Council.
Once Google and Microsoft embrace the same set of standards, which they seem set to do, then everybody from health benefits providers to hospitals to pharmacies and labs can send their data to either platform, and the patient decides where it goes from there. "In a perfect world, Google, Microsoft and other major services would develop a sort of 'plug-and-play' interoperability standard that will simplify the process for both patients and IT staff," he says.
The bottom line is that it's going to be the consumer who drives the ultimate success or failure of the PHR. Without their effort, trust, and buy-in, it won't matter how secure or technologically advanced any of the platforms become. That said, I'm thinking that since most of us have already migrated to the online world for a myriad of everyday transactions—travel reservations, shopping, bill paying, even dating—it's easy for me to imagine the management of my healthcare on that list.
Kathryn Mackenzie is technology editor of HealthLeaders magazine. She can be reached at kmackenzie@healthleadersmedia.com.
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Here in the U.S., we will elect a new president today, but I tend to agree with my colleague Philip Betbeze that whoever wins will not be in the position to make dramatic changes to the health system because of the global financial crisis.
Well, the next U.S. president won't be the only one wrestling with the economy. CEOs of international health systems are closely tracking the financial markets, and those I've recently connected with expect that new business development will be challenging. Some are putting new deals on hold. At the same time, many of these health leaders are optimistic that capital access will improve soon and new growth plans will return.
Here are a few recent responses on the issue I received from international hospital CEOs:
Vishal Bali, CEO of the Wockhardt Hospitals Group, India: The access to capital will be an issue in the short run; however, once the liquidity returns to the financial markets and particularly to the banks, I do not really see problems in the long run. As a profitable organization we have internal cash flows which will help in completing some of the ongoing projects and as the situation improves externally capital availability will resume for other large projects. Resumption of [capital expenditures] is going to be extremely critical for industrial activity and GDP growth across the globe, so it is imperative that we will see a reversal of this mayhem in financial markets soon. We are currently pursuing the projects and expansion plan that was on the drawing board as of 2008 and scheduled for completion by 2011. At current time we are not signing any deals beyond this time frame.
Ken Ouriel, MD, CEO of Sheikh Khalifa Medical City in Abu Dhabi: International hospital projects will no doubt be more difficult in this new credit environment—it will be more challenging to access debt financing, equity ratio requirements will be more substantial, and interest rates will be higher. Financing for international capital expenditures will not change—the sources will continue to be lending from international banks, cash from quasi-government entities, and from Western-derived equity. It seems that traditional private equity has fallen off with respect to the latter, while funding from hedge funds had increased. Whether this will continue into Q4 remains to be seen, noting the challenges that hedge funds have experienced of late.
David L. Printy, CEO of Oasis Hospital, Abu Dhabi: I don't see long-term issues about credit in the Middle East market, [but] short term we find UAE banks being very "careful" in granting credit lines—short term and capital funding lines. We will not finance any construction in Middle East without OPIC support as cost could be too high. Dubai is starting to show signs of world credit limitations, and buyers have disappeared for retail housing and condo markets. Pull back of commercial space occupancy absorption has begun. Abu Dhabi continues to be strong with sound financials and demand ahead of build.
The American Medical Informatics Association 2008 Annual Symposium will be held in Washington, DC, November 8-12, 2008. "The symposium brings together an amazing network of informatics experts that span the spectrum of foundations and applications of informatics," according to the AMIA Web site. "AMIA 2008 will gather professionals from an array of occupational settings—academic institutions, community-based organizations, government and military, health systems and hospitals, industry, nonprofit organizations, and private practice—which makes it the most exciting meeting in biomedical and health informatics each year."
FiatLux Imaging is introducing enhancements to its Visualize 3D Application at Radiological Society of North America Conference 2008. "Ushering in new possibilities for high-quality, affordable 3D medical image visualization, FiatLux Visualize harnesses the power of video game technology to set new standards in 3D image quality and processing speed," according to a FiatLux Imaging release.
Independent accreditation organization URAC has made revisions to its healthcare information technology standards that affect Web site accreditation and HIPAA privacy and security standards. The revised privacy and security standards emphasize the need for annual workforce training. "The revisions mirror advancements in the market, and strengthen the credibility of organizations that provide information and services on the Web," said Douglas Metz, DC, chairman of URAC's Health Standards Committee, in a statement. "Accreditation protects the public interest by giving organizations a framework to ensure they are protecting personal health information and providing beneficial health information."
The Centers for Medicare & Medicaid Services has announced an incentive for physicians to trade in their prescription pads and improve efficiency and safety by prescribing drugs online for Medicare patients. The initiative is included in the Medicare Physician Fee Schedule for 2009. Physicians who use electronic prescribing systems to transmit prescriptions to pharmacies may earn an incentive payment of 2% of their total Medicare allowed charges during 2009.