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Washington, D.C. --- U.S. Rep. Frank Pallone, Jr. (D-NJ), Chairman of the House Energy and Commerce Subcommittee on Health, gave the following opening statement this morning at a subcommittee hearing entitled, "Discussion Draft of Health Information Technology and Privacy Legislation." On May 22nd, Pallone released the draft legislation with U.S. Reps. John Dingell (D-MI), Chairman of the House Energy and Commerce Committee, Joe Barton (R-TX), ranking Republican of the House Energy and Commerce Committee, and Nathan Deal (R-GA), ranking Republican of the House Energy and Commerce Subcommittee on Health.
"Good morning. Today the Subcommittee is meeting to review draft legislation regarding Health Information Technology (HIT). Our nation’s health care system is arguably one of the most inefficient and costly systems in the industrialized world. We spend approximately $2.7 trillion, or $7,600 per person, annually on health care, approximately sixteen percent of our nation’s Gross Domestic Product (GDP). What has our money bought us? Studies show that in spite of all our spending we do not fair any better on important health measures than countries that spend far less.
"Skyrocketing health care costs; inconsistent quality; and huge disparities in access are just a few of the problems that we face. Health care experts around the country agree that Health Information Technology could improve our system by making it safer and less costly.
"In this modern day in age, I find it unbelievable that our health care system is so out of date. Thanks to modern technology a person can manage their finances from their home PC or order a pizza with a click of the button. And yet, most patients and providers rely on antiquated systems that are counterproductive to the delivery of health care.
"Patients are prompted to recall their entire medical history every time they see a new provider. A lapse in memory could lead to duplication of services or worse, medical errors. Pharmacists struggle to make sense of hand written prescriptions. Emergency Rooms are forced to treat unconscious patients without knowing their complete medical history and no way to ascertain that information. All of these problems could be solved with HIT.
"In addition, we would achieve enormous savings from the widespread adoption of HIT. The potential savings from HIT is estimated to be anywhere between $81 billion and $170 billion annually. Such savings would occur by improving coordination of care, patient safety, as well as disease management and prevention efforts. At a time when the cost of health insurance and medical services continue to skyrocket, we could use those savings to help improve access for some of the 47 million uninsured Americans.
"While some providers have already begun to make the investment in HIT, far more have not because of serious financial and operational barriers. In the audience today is Freeholder Jim Carroll of Bergen County, New Jersey who has been trying to take the initiative to modernize the medical facilities in his area. He has showed me first hand the challenges these communities face. That is why the federal government must take a more proactive role at facilitating the adoption of a nationwide interoperable HIT infrastructure. The draft legislation we are reviewing today seeks to accomplish that goal.
"This discussion draft would codify the Office of the National Coordinator for Health Information Technology (ONCHIT), which would have key responsibilities, such as designing a strategic plan for the development and implementation of a nationwide HIT infrastructure. The draft also would establish two Federal advisory committees that would assist the National Coordinator by making recommendations on policies and technical standards.
"In order to promote the electronic exchange and use of information, the discussion draft also directs Federal agencies to use HIT that meet adopted standards, which will help move the private sector towards the adoption of HIT as well.
"The draft also includes financial incentives for providers to adopt and use HIT through three new grant programs. The first program will offer competitive grants for providers to purchase HIT, with a preference for small health care providers; providers in medically underserved areas; and others that have difficulty in acquiring HIT on their own. The second program is for States and Tribes that will help leverage private sector dollars in order to provide low-interest loans to help providers purchase HIT. Finally, the third program provides support for local or regional organizations to develop HIT plans.
"This draft also takes an important step forward on protecting patient privacy. The draft would close a number of loopholes under the existing regulatory framework that governs patient privacy and security. It would also provide patients with more options to control their health information and require patients be notified when their protected health information has been breached.
"I know that the issue of patient privacy is very important to members on both sides of the aisle, including myself. While I think that the provisions included in the discussion draft would do a lot to improve the protection of patient privacy, I recognize that there may be various views on this. I am looking forward to hearing some of those views today and working with my colleagues as we move forward with this draft.
"As I said at the beginning of my statement, we need to move forward with modernizing our nation’s health care system. Investing in HIT today will help make our system more efficient tomorrow, thereby lowering costs and saving more lives.
"I want to thank my colleagues who have worked so diligently on the development of this draft. Particularly, I want to thank Chairman Dingell, for whom this has been a top priority, as well as Ranking Members Barton and Deal. I am pleased that we have been able to work with our Republican colleagues and make this a bipartisan effort. I also want to recognize the efforts of Representatives Waxman, Markey, Towns, Gordon, Eshoo, Capps, and Gonzalez, all of whom have been instrumental in the development of this draft.
"I now recognize Ranking Member Deal for five minutes for the purpose of making an opening statement."
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