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The Business of
Health Care Report Computers, cell phones and the Internet have changed our lives. As more information about who we are, where we go and what we buy is transmitted electronically instead of on paper, concerns about privacy are increasing. Privacy is a business issue, too -- particularly as it relates to the cost of health care. The health care industry has a long record of working to protect the confidentiality of medical records. We support uniform guidelines that would help protect the disclosure of personally identifiable health information. However, we realize policymakers must strike a careful balance between confidentiality and the authorized sharing of certain health information. If doctors cannot share appropriate health information with pharmacies, hospitals and insurance companies, the quality and timeliness of care could suffer. Without access to appropriate health information, medical research and technological innovation will slow to a crawl and become much more expensive. If information-sharing laws are too stringent, record keeping and monitoring costs will skyrocket. Legal and information management costs also could rise substantially. Those increases will inevitably be passed on to the businesses and employees who pay for health care. On the other hand, if information-sharing guidelines are too lenient, fear and anxiety over the possible disclosure of personally identifiable health information may change health behavior for the worse. Employees may be tempted to delay or use episodic care rather than establish an ongoing physician relationship to oversee their health. Job performance could suffer and absences might increase. Privacy will be a major issue in the 77th Texas Legislature. Although federal privacy regulations were recently adopted and are estimated to cost twice as much as Y2K implementation for hospitals and insurers, state lawmakers are considering privacy legislation that would make requirements in Texas more stringent. Privacy is a business as well as a personal issue -- and its resolution requires a delicate balance between confidentiality and the authorized sharing of health information. Come back to TexasHealth.org for more information on the Business of Health Care, and tune into News Radio 1080 KRLD each week for new reports. DougHawthorne@TexasHealth.org. ©
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