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18th September 2009

Survey of healthcare experts finds that new 'Connected Health' prevention could cut U.S. healthcare costs by up to 40 percent

• Respondents reveal potential for new Connected Health technologies while also identifying a knowledge gap and slow adoption rate

A patient-centered and coordinated approach to healthcare could save billions, according to a survey of leading healthcare providers, patients, payers and technology enablers.  Focus on patient well-being will improve overall health outcomes and care coordination will reduce wasteful spending in defensive medicine, inefficient claims processing, medical errors and E.R. services, according to results released today by the Massachusetts Medical Device Industry Council (MassMEDIC) and Cambridge Consultants, a leading technology product design and development firm.

The MassMEDIC and Cambridge Consultants Connected Health survey findings come on the heels of an August report issued by the accounting firm PriceWaterhouseCoopers’ Health Research Institute, which found that wasteful spending in U.S. healthcare is estimated at $1.2 trillion annually, comprising over half of the $2.3 trillion spent in total.  The greatest areas of excess, according to the report, are found in defensive medical practices ($210 billion) such as redundant, inappropriate or unnecessary tests and procedures, followed by inefficient healthcare administration (up to $210 billion) and the cost of care necessitated by preventable conditions ($100 billion).  In many cases, healthcare specialists are motivated to employ tests or procedures based on concern over liability or increasing their income over the needs of a patient.

Of the survey respondents who were familiar with the Connected Health approach, 75 percent predicted that this new preventative practice could cut health care costs by up to 40 percent.  An integrated Connected Health approach advocates an end to end solution, giving patients control as well as responsibility and connecting them with a wide network of healthcare professionals and online applications.  This integration can be achieved through a range of technologies, beginning with Electronic Medical Records and expanding outside clinical settings via connected devices such as glucometers and inhalers.  This approach can improve medication adherence, enable early detection, reduce long-term treatment costs, and improve patient access to, and interaction with, healthcare providers. 

Given the perceived benefits of a Connected Health future, the survey also reveals a worrying lack of knowledge about the new approach, with 40 percent of respondents saying that they were "not aware of Connected Health solutions or examples."

"It is apparent that the survey results call for a concerted national educational campaign, for the medical community and the public at-large, on the virtues of using connected health solutions to improve patient adherence, engagement and clinical outcomes," said Dr. Joseph Kvedar, Founder and Director, Partners Healthcare Center for Connected Health.  "As early adopters of this philosophy at Partners, we have seen improvements in operational efficiencies in our hospitals, and with insurers and pharmacies alike, not to mention more active, engaged and, ultimately, compliant patients."

While many respondents view Connected Health as a cost-saving alternative for U.S. healthcare, the great majority (90 percent) of those who responded to the question, believe widespread adoption will take at least four and potentially up to fifteen years.  A narrow view of the Connected Health concept was also uncovered, limited in many cases to electronic medical records or remote monitoring.

"Effective and innovative Connected Health technologies exist in the market today, albeit in an uncoordinated and piecemeal fashion," said Vaishali Kamat, Group Manager at Cambridge Consultants, and organizer of the survey.  "But if we adopt a Connected Health mindset and improve interoperability, costs for linking patients with providers will come down and ignite realization of the explosive market potential cited in the survey.  We are already seeing new players entering the healthcare space, deploying smart solutions targeted directly at consumers.  We cannot ignore the potential that this has to improve the outcomes for all the stakeholders in the healthcare world."

According to the survey, a leading factor holding back adoption is that no single owner is accountable to drive the solutions.  Larger incumbent organizations such as insurers, institutional medical care providers, and drug or medical device companies are skeptical and slow to move, waiting to see the outcomes of recent political and other market developments.

"Fixing healthcare in this country should be our government's highest priority," said Thomas Sommer, President, MassMEDIC.  "And we know that even with all the technology in the world, the political will must be there as well.  Elected officials need to know about the incredible potential of Connected Health before it is too late as we begin to design new cost-saving measures into the healthcare system.

Concurrent with the release of the survey results, MassMEDIC and Cambridge Consultants will today host 'Delivering on the Promise of Connected Health', a program highlighting the potential benefits that Connected Health could bring.  At the Massachusetts Medical Society headquarters in Waltham, MA, expert panelists will provide in-depth analysis by presenting their experiences with Connected Health and a moderated discussion will address key study findings and debate the challenges ahead.

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