Ann Fishman, with EHR TV, interviews Jim Roytek, Senior Vice President Sales and Marketing Physician Practice Solutions of McKesson.
Ann Fishman: I’m Ann Fishman at HIMSS 2012 with Jim Roytek, Senior VP of Physician Practice Solutions of McKesson; thank you Jim for being with me today.
Jim Roytek: Thanks for having me.
Ann Fishman: We’re going to talk about the regulatory environment and what McKesson is doing to position their client base to respond to these challenges. There was an article in Health IT News this week that said, HIPAA 5010: A train wreck coming. What would be McKesson’s view on that?
Jim Roytek: Well – I mean – you know, just in the past month – you know, with 5010 – you know, they delayed the regulations. It was going to be in the end of December, and they delayed, and they gave you another three months. I would say the industry’s had challenges in the last month. I’ve seen – it’s stabilizing and getting better. But you look at the 4010, the 5010, you look at the clearing houses, the water cycle management vendors, and the payers; there’s that transition. So when you look at these entities; they’re still working through that transition.
Ann Fishman: Is McKesson ready for 5010?
Jim Roytek: Yeah, McKesson’s ready for 5010. You know, we’ve got several practice management systems that we’ve been planning for it. And depending on the segment – you know, we’re helping our customers today.
Ann Fishman: What about ICD 10? That’s another challenge for physicians.
Jim Roytek: Yeah, and I – you know, we see ICD 10 is even more challenging than 5010 because of – you know, change in the way they diagnose. And we will prepare for that with additional services and consulting because we feel like they’ll probably need it.
Ann Fishman: When you hear that the AMA – I believe it was in November; actually petitioned for a moratorium on the implementation of ICD 10 – does that indicate that really the US physicians are not ready for this C change?
Jim Roytek: Yeah – I mean, I think there’s general industry nervousness – you know, seeing what’s happening with 5010, I think there’s some nervousness in the industry. ICD 10 would be bigger and more of an adjustment for the physicians in the workflow. And so it’d be interesting to see what the final ruling is on that because there’s a lot of talk that that will get delayed, but I don’t know how long or will it stay like that.
Ann Fishman: What about meaningful use stage 1; do you think that we have achieved the benchmarks that were set forth in the regulations?
Jim Roytek: I see – you know, that’s published out there in government websites – you know, the providers that achieve meaningful use, and I see it really ramping now. With really – a lot of the vendors; they post that. So – you know, I think it’s been productive. I don’t know if the adoption’s been what we thought it would be, but the awareness of EHR is definitely picked up.
Ann Fishman: Do you think that we’re going to achieve the objective of widespread or even ubiquitous adoption of EHR technology by 2014?
Jim Roytek: I believe that there will be a mainstream shift due to the – you know, oral regulations by 2014.
Ann Fishman: What are you specifically doing for the smaller physician groups?
Jim Roytek: Yeah, for the smaller groups – we got over a hundred and twenty-five thousand physicians – independent practices that are not – you know, employed by hospitals. So we’ve got – you know EHR and Practice Management there but we just released a new web based solutions – SaaS space solution that is really – we feel it’s going to be very popular. We already got a lot of mail for it for the smaller physicians; the ones Z, two Z, three Z physicians. Primary care that don’t have a lot of capital, they don’t have a lot of IT staff – and with the web base; they don’t have to buy a server and have all the needs for that. We also have what we call Practice Care which is a suite of consulting services that will help them financial – do well financially, operationally, and clinically. In example that would be for primary care to achieve patients that are medical home status. We got an affordable solution for ones Z, two Z doctors that go along with EHR to help them.
Ann Fishman: When you have a cloud base product, how much more challenging is the security that you need to implement into that?
Jim Roytek: Yeah, there’s industry regulation as far as security – to secure the data encryption. And there’s also – you know, the data backup – I mean because the data is in one location – we get a lot of questions – “Is my data okay because it’s not my office?” But – you know, we’ve got – you know, not to get too technical but backup systems for that and then also have to adhere to the security regulations and make sure that’s secure and tested.
Ann Fishman: What does McKesson do to deconstruct these regulations?
Jim Roytek: Yeah, and we look at it and McKesson – we feel like we play in all part of what an ACO will be – and it is evolving and if you read. And I don’t know if anyone in the industry can say exactly what an ACO’s going to be, but if you read the pilots and the regs it could hospitals, it could be an independent group, it could be an entity as long as they abide by population management. And so it will be interesting as these pilots evolve – you know where it goes. But we – we’re in all – the whole ecosystem of healthcare. So in our business – independent physicians; we feel like that’s going to be a key because we can see the shift towards primary care – patients are on medical home. And so, what we see is – you know, having connectivity and engagement with – you know, the enterprise, the patient, and care coordination. So tertiary you have EHR but as you coordinate across the system and go from primary care, to specialists, to hospitals; that’s going to be a pillar of an ACO.
Ann Fishman: Do you think that the ACO paradigm is very critical to the goal of cutting costs?
Jim Roytek: Yeah, I mean, if you look at it, you shift from feed per service to population management, and as you evolve in it, it certainly would cut cost in my opinion.
Ann Fishman: Do you think that at the end of the day, we are going to get better healthcare out of the regulatory environment?
Jim Roytek: I think – I think yes, you will. Because you’ll measure quality – it’ll – better make decisions, and I think its better.
Ann Fishman: Give me your thought on what the theme of HIMSS 2012 is this year.
Jim Roytek: You know, just the theme, all vendors, it’s a really busy show – it’s questions you ask, it’s preparing for workload changes, with meaningful use, and 5010, ICD 10 – helping the providers do transitions.
Ann Fishman: Thank you so much, this is Ann Fishman at HIMMS 2012.