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February 27, 2013 12:45 pm GMT

Big Silo-busting, Startup-unleashing Healthcare Move by Federal Government

Unleash venturesEditors note:Dave Chaseis the CEO ofAvado.com, a patient portal and relationship management company that was aTechCrunch Disrupt finalist. Previously he was a management consultant for Accentures healthcare practice and founder of Microsofts $2 billion health platform business. He’s also the co-editor of Engage! Transforming Healthcare Through Digital Patient Engagement. You can follow him on Twitter@chasedave. For the first time, the federal government has provided large financial incentives to share one’s health data between authorized healthcare providers and with patient themselves to facilitate patient engagement. In the past, there was a disincentive for providers to share information outside of their silo. This has been a central reason why healthcare has been a technology backwater. Technology monocultures can thrive in the old silo’ed environment. A recent decision has created a strong new incentive for providers that has the byproduct of opening up opportunities for startups that didn’t exist before creating a more diverse ecosystem of interoperable web services. The recent rulings are one of the key technology enablers forhealthcare’s trillion dollar disruption. “The bible of health policy” (Health Affairs) devotes this month’s publication to the “New Era of Patient Engagement”. The reason is patient engagement has been called the blockbuster drug of the centuryfor its profound impact on improving health outcomes. Patient engagement is defined as actions that people take for their health and to benefit from care.Combining patient engagement with other proven approaches such aschoice architecture(the way in which decisions may and can be influenced by how the choices are presented in order to influence the outcome — see Wikipedia for more)can dramatically improve health outcomes. Evidence is overwhelming that healthcare providers who engage with their patients and caregivers have far better outcomes (e.g., 73-88% reduction in mortality). A big move just announced by the governments provides further evidence of patient engagement moving mainstream creating demands for new software and opportunity that is without precedent in healthcare. The nation’s “healthIT czar” (Dr. Farzad Mostashari) runs an organization called theOffice of the National Coordinator (ONC), originally setup by the Bush Administration. Later, the Obama Administration doubled down on efforts to catch healthcare up with the rest of society in terms of adoption of modern computing approaches in electronic health records (EHRs). Even today, the “Wang era” (i.e., one vendor provides the entire technology stack) persists in healthcare. Like the Wang era, there is limited ability to interface with other systems. For even

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