Healthcare Reform May Trigger Big Tech Spending

(MoneyWatch)  Last night the U.S. House of Representatives passed historic health care legislation. Now Congress goes into what could be a protracted process of political football, as Democrats try to get a final bill to President Obama for signature and Republicans try to push amendments in the Senate that would effectively collapse of the legislation. Insurance and health care companies have had their eyes glued to the wrestling match. High tech companies should pay close attention too, as provisions in the Senate bill could create major new sales opportunities.

I looked at the Senate bill, the amendments that the House passed, and the reconciliation bill. There are dozens of references to information technology. Here are some of highlights:

• An independent "Center for Comparative Effectiveness Research" would "conduct, support, and synthesize research" on "outcomes, effectiveness, and appropriateness of health care services and procedures" to identify best practices and make the information available to a variety of companies, including health information technology vendors. That will likely mean pressure on how companies design and implement systems and equipment.
• An "Office of the National Coordinator for Health Information Technology" will "ensure optimal use of health information technology." This will include "standards, implementation specifications, and certification criteria" for electronic health care records. That alone could help fuel implementation of EHRs, and that can run millions per hospital.
• The national coordinator would also focus on "optimal use of health information technology."
• A medical device registry to store safety and outcome data from the use of medical devices for analysis.
• Among other things, a "National Committee on Vital and Health Statistics" would review whether non-profit health care organizations had operating rules that were "consistent with electronic standards adopted for health information technology."
• There is an "Office of the National Coordinator for Health Information Technology."
• An entire section of the bill covers IT standards for enrolling individuals into federal and state services and for interoperability.
• To receive federal funds for health care information technology investments, states would have to use prescribed standards and protocols.
• Health care vendors would have to use IT "when appropriate and feasible" to receive payments.
• Health IT would have to incorporate "quality improvement and measurement."
• IT systems would extend to home tele-health care, the care provider network, and a registry for the chronically ill.
• Performance bonuses depend on health IT systems, including "clinical decision support and other tools to facilitate data collection and ensure patient-entered, appropriate care."
• Establish various demonstration projects for health information technology to improve patient care.
• Provide assistance for better quality improvement and patient safety, with grants requiring coordination with "health information technology regional extension centers."
• Provisions for electronic health records technology certification.

In short, whatever version of legislation actually makes it to the president will result in increased high tech spending as well as increased government regulation of technology standards and implementation. That will affect all who target the health care market, including Microsoft (MSFT), Google (GOOG), and HP (HPQ).

Image via RGBStock.com use Littleman, site standard license; photo manipulation by Erik Sherman.