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IOM Calls for Overhaul of Health Care Industry

March 1, 2001 -- The nation's health care industry has foundered in its ability to provide safe, high-quality care consistently to all Americans, says a new report from the Institute of Medicine (IOM) of the National Academies. The report envisions a revamped system that not only is centered on the needs, preferences, and values of patients, but also encourages teamwork among health care workers and makes much greater use of information technology.

Health care organizations are only beginning to apply technological advances. Many patients also could have their needs met more quickly and at a lower cost if they had the option of communicating with health care professionals through e-mail. The use of automated medication order entry systems can reduce errors in prescribing and dosing drugs, and computerized reminders can help both patients and clinicians identify needed services. However, the report recognizes that many policy, payment, and legal issues would have to be resolved before much headway could be made.

A nationwide effort is needed to build a technology-based information infrastructure that would lead to the elimination of most handwritten clinical data within the next 10 years, the committee said. Congress, the executive branch, leaders of health care organizations, and public and private purchasers should work together toward this goal. Without a national pledge to create and fund such a technological framework, progress to enhance quality of care will be painfully slow.

To spur an overhaul, Congress should create an "innovation fund" of $1 billion for use during the next three to five years to help subsidize promising projects and communicate the need for rapid and significant change throughout the health system, the report adds. Just as a solid commitment of public funds and other resources supported the ultimately successful mapping of the human genome, a similar commitment is needed to redesign the health care delivery system so all Americans can benefit.

"Americans should be able to count on receiving care that uses the best scientific knowledge to meet their needs, but there is strong evidence that this frequently is not the case," said William C. Richardson, chair of the committee that wrote the report and president of the W.K. Kellogg Foundation, Battle Creek, Mich. "The system is failing because it is poorly designed. For even the most common conditions, such as breast cancer and diabetes, there are very few programs that use multidisciplinary teams to provide comprehensive services to patients. For too many patients, the health care system is a maze, and many do not receive the services from which they would likely benefit."

Clinicians, health care organizations, and purchasers -- companies or groups that compensate health care providers for delivering services to patients -- should focus on improving care for common, chronic conditions such as heart disease, diabetes, and asthma that are now the leading causes of illness in the United States and consume a substantial portion of health care resources. These ailments typically require care involving a variety of clinicians and health care settings, over extended periods of time. But physician groups, hospitals, and health care organizations work so independently from one another that they frequently provide care without the benefit of complete information about patients' conditions, medical histories, or treatment received in other settings, the committee pointed out.

The committee's previous report, To Err Is Human: Building a Safer Health System, found that more people die from medical mistakes each year than from highway accidents, breast cancer, or AIDS. But findings in that report amounted to only the tip of the iceberg in the larger story about quality care. America's health system is a tangled, highly fragmented web that often wastes resources by providing unnecessary services and duplicating efforts, leaving unaccountable gaps in care and failing to build on the strengths of all health professionals, the new report states. It calls for immediate action to improve care -- in all aspects and for everyone -- over the next decade, and offers a comprehensive strategy to do so. The committee examined the health care delivery system as a whole; it did not address the issue of the uninsured, who are the subject of a separate Institute of Medicine project.

A Broad View of Quality

To initiate across-the-board reform, the federal Agency for Healthcare Research and Quality should identify 15 or more common health conditions, most of them chronic, the report says. Then, health care professionals, hospitals, health plans, and purchasers should develop strategies and action plans to improve care for each of these priority conditions over a five-year period.

To stay aware of the big picture, the U.S. Department of Health and Human Services (HHS) should monitor and track quality improvements in six key areas: safety, effectiveness, responsiveness to patients, timeliness, efficiency, and equity. And the secretary of HHS should report annually to Congress and the president on progress made in those areas, the report says.

In addition, public and private purchasers should develop payment policies that reward quality. Current methods provide little financial reward for improvements in the quality of health care delivery, and may even inadvertently pose barriers to innovation. With input from relevant private and public interests, the federal government should identify, test, and evaluate various payment options that more closely align compensation methods with quality-improvement goals.

The committee also offers 10 new rules intended to make the health system more responsive to patients' needs and preferences and to encourage their participation in decision-making. These rules also are intended to promote the development of systems that are consciously and carefully designed to be safe, anticipate patient needs, promote cooperation among clinicians, use resources wisely, and make available information on quality and safety performance (see attached list).

The study was sponsored by the Institute of Medicine, National Research Council, Robert Wood Johnson Foundation, California Health Care Foundation, the Commonwealth Fund, and U.S. Department of Health and Human Services. The Institute of Medicine is a private, nonprofit institution that provides health policy advice under a congressional charter granted to the National Academy of Sciences. A committee roster follows.

Pre-publication copies of Crossing the Quality Chasm: A New Health System for the 21st Century are available from the National Academy Press at the mailing address in the letterhead; tel. (202) 334-3313 or 1-800-624-6242. The cost is $50.00 (prepaid) plus shipping charges of $4.50 for the first copy and $.95 for each additional copy. Reporters may obtain a copy from the Office of News and Public Information at the letterhead address (contacts listed above).

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