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February 09, 2005
CARMAKERS: HEALTH SAVINGS: UAW, companies agree to computer drug prescribing
CARMAKERS: HEALTH SAVINGS: UAW, companies agree to computer drug prescribing
CARMAKERS: HEALTH SAVINGS: UAW, companies agree to computer drug prescribing
Electronic orders could reduce errors
February 9, 2005
BY JEFFREY McCRACKEN
FREE PRESS BUSINESS WRITER
General Motors Corp., Ford Motor Co. and DaimlerChrysler Corp. are combining with the UAW and the state's three-largest health-care insurers to get all their prescription drug orders in metro Detroit handled electronically, through PCs or other wireless devices.
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The multimillion-dollar push is believed to be the first employer-led effort in the United States to have drug orders filled electronically.
And it could affect more than just the hundreds of thousands of workers, retirees and others across Michigan who rely on Detroit's automakers for health-care coverage since doctors who join the plan will be encouraged to use it with all of their patients.
The program, called e-prescribe, is part of a major health-care cost-cutting effort by the automakers, which spent a combined $10 billion last year on health care for 1.83 million active workers, retirees, spouses, surviving spouses and other dependents. That could grow by another billion in 2005.
The automakers' hope is they will save money by reducing medication mistakes, eliminating harmful drug interactions and increasing the use of lower-cost, generic drugs. GM has estimated about one GM-covered person per day dies because of a medical error.
If the plan succeeds, the illegible handwritten prescription from your doctor might go the way of the 8-track tape.
Automakers, who spend far more on health care than they do on steel, hope they can "share what we learn with the government and others" to create a nationwide health technology system, said GM spokeswoman Sharon Baldwin. Rising health-care costs, specifically rising drug costs, have been a top concern for the automakers for several years.
The plan has been in the works for more than a year. GM, Ford and the Chrysler Group negotiated with the UAW in their 2003 national contract talks to get the union's support. After it is rolled out in Michigan, the automakers hope to push the plan into other parts of the country where they have a lot of employees and retirees.
The plan is to be announced Thursday morning. About 6,500 doctors are expected to join at first, with eventually about 17,000 doctors getting involved. The state's largest health plans also are part of the effort -- Blue Cross Blue Shield of Michigan, Henry Ford Health Systems and Health Alliance Plan.
It would work this way: Doctors would write the prescription on a personal computer, PDA or other electronic device and send them directly to the pharmacy for filling.
"The initiative is about quality care for our people. Reducing medical errors is a key benefit. A side benefit is the technology helps look for generic equivalents," said Chrysler spokesman David Elshoff. "In the long run, you do hope to get some cost savings, but that's not the only driver of the program."
The plan began rolling out early last month with about 25 doctors at Henry Ford Health Systems.
"It's a much better process than what we've been doing," said Dr. David Allard, a Royal Oak-based family physician who is part of the Henry Ford pilot program. "It's much faster for the patients if we send their orders electronically. Also it eliminates harmful drug interactions where you have older patients who might see a cardiologist and an allergist and a family doctor.
"Also, this way, multiple doctors can all look and see what other doctors are doing. I think it's safer for the patient if there is also like a team-based approach to this. Plus there are no handwriting issues for the pharmacist either."
A 2003 national study found e-prescribing reduced the number of calls by pharmacies to doctors to double-check prescriptions by 30 percent.
One hurdle could be that doctors will have to buy their own PC or wireless device, but the automakers say they will offer financial incentives to help offset the cost of the technology. Doctors won't be required to join the plan, but automakers say they hope they will.
The automakers would not specify how much they were spending on the effort. Ford spokeswoman Marcey Evans said, "Each of the three has contributed considerable resources, let's put it that way."
A company called RxHub is providing the technology for the plan.
Allard says the technology he has used has safeguards for patient privacy.
"Privacy is a concern, but so long as you have encrypted networks between the doctor and the pharmacy, you are safe," he said.
Technology experts in the health-care field say electronic prescribing is a plus for patients.
"I do not see any downside for consumers. I think this will eliminate a lot of inconvenience," said Vimal Chowdhry, vice president of information technology at Henry Ford Health Systems. "You find out right away if, say, your insurance doesn't cover a drug. Your doctor can take care of it before you ever go pick up your drugs."
Chowdhry said a hurdle might be getting all of the old prescription-drug information into electronic form so doctors know not only the new drugs patients are being prescribed, but the ones they've used in the past and how well they worked.
Contact JEFFREY McCRACKEN at 313-222-8763 or mccracken@freepress.com.
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