Viewpoint July 7, 2010, 3:01PM EST

Redesigning the Health-Care System

(page 2 of 2)

Integrating Records and Communications

A more ambitious take on creating an integrated health-care system is being piloted in "medical homes" across the country. Already supported by such insurers as Aetna and UnitedHealthcare, medical homes rely heavily on self-administered home tests and frequent communication between patients and their primary care physicians. Services include "round-the-clock access, electronic health records, use of e-mail and phone communication, patient feedback, and fee for service and fee for performance," according to a CNN Money report. The aim is to connect purchasers, payers, and providers to improve care and lower costs.

Initial results are promising: the article cites the Geisinger Medical Home Initiative in Pennsylvania, which tested a pilot in 2006 and found a reduction of nearly eight percent in hospital admissions among its Medicare patients and a four percent reduction in medical costs. Members with access to a virtual health-care provider were less likely to be admitted to a hospital, while in the case of chronic kidney disease patients, "improved performance measures resulted in drug cost savings of $3,800 per patient per year," according to a Health Policy Monitor report.

That integration improves the user experience and reduces costs should come as no surprise. Apple's (AAPL) sustained growth over the past decade is largely attributable to its integrated hardware, software, media, and retail experiences, and even classic American business successes such as Ford (F) in the 1920s and McDonald's (MCD) in the 1950s are primarily stories of integration. Health care, like any other consumer-facing industry, has much to gain by bridging gaps and linking adjacent offerings. And with 32 million new users promised by the passage of recent legislation, they'll have no shortage of opportunity.

Eric Park, creative director of Ziba, contributed to this article.

Sohrab Vossoughi is Founder and President of ZIBA Design, the company he started in 1984. The recipient of more than 30 patents and over 200 design awards, Vossoughi was named BusinessWeek's Entrepreneur of the Year in 1992. He continues to direct projects for clients including Nike, Microsoft, Xerox and Hewlett-Packard.

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