Quote Of The Year

Timeless Quotes - Sadly The Late Paul Shetler - "Its not Your Health Record it's a Government Record Of Your Health Information"

or

H. L. Mencken - "For every complex problem there is an answer that is clear, simple, and wrong."

Saturday, April 15, 2017

Weekly Overseas Health IT Links – 15th April, 2017.

Note: Each link is followed by a title and few paragraphs. For the full article click on the link above title of the article. Note also that full access to some links may require site registration or subscription payment.
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Has health IT’s rapid growth rendered HIPAA obsolete?

Apr 7, 2017 9:10am
Privacy experts wonder whether a 20-year-old law needs an overhaul to align with health IT innovation.
More than two decades after HIPAA was signed into law, privacy experts are split on whether the landmark privacy legislation needs a reboot to keep pace with a rapidly evolving, data-centric industry.
But exactly how the law should be updated remains a point of contention among privacy officers, according to an article in the Journal of AHIMA, published by the American Health Information Management Association.
Although HIPAA has undergone several updates since it was passed in 1996, some argue that new privacy laws can fill the gaps where the law has been outpaced by technology advancements—like mobile apps and wearables—that generate more shareable health data for patients. Others say HIPAA could benefit from an update that would encapsulate telehealth, patient portals and other electronic forms of communication, like texting.
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Dorset Care Record project signs £7.8m deal with Orion

Jon Hoeksma

5 April 2017
People in the county of Dorset are set to benefit from shared health and care records, after a £7.8 million five-year framework contract was awarded to Orion Health.
The Dorset Care Record (DCR) project is being led by Dorset County Council, working in partnership with local NHS organisations and borough councils. Each will contribute to the overall cost of the project, which is estimated at £20 million over 10-years.
The new DCR will bring together information from hospitals, GPs, community teams and local councils, enabling summary details of a person’s medical or care history to be accessed in one place.
Hoped for benefits should include improved coordination of care and communication between different health and care agencies, improving treatments and reducing delays. Patients will be able to access and contribute to their records online.
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Patients to get access to GP records via NHS.uk in September 2017

Laura Stevens

6 April 2017
Patients will be able to access their GP record via the revamped NHS.uk from September 2017, according to NHS Digital.
NHS Digital’s latest board papers, which were published 28 March, mention the aim and state a target go live date of 30 September 2017. A spokeswoman subsequently confirmed the timing to Digital Health News.
A spokesman for TPP, providers of the SystmOne EPR which is widely used in primary care, said the company is working with NHS Digital to give patients access to their GP record via NHS.uk. “TPP is providing access to SystmOnline APIs.”
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University of Kansas Health System taps mobile app to treat stroke, sepsis

Apr 6, 2017 11:41am
Clinicians at The University of Kansas Health System will use an app to identify signs of stroke and sepsis. Image: Getty / Sam Edwards
The University of Kansas Health System is providing physicians with a mobile app to speed up the time it takes to diagnose two deadly conditions.
For patients exhibiting signs of stroke or sepsis, time is critical. However, recognizing those signs can be difficult. Through the grant-funded Kansas Heart and Stroke Collaborative, the University of Kansas Medical Center announced it is pilot-testing an app that incorporates evidence-based protocols at the point of care.
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65 percent of healthcare organizations have documented mobile strategy

Apr 4, 2017 at 1:47 PM
The rise of technology in healthcare is causing many organizations to implement a mobile strategy.
This finding comes from part one of a two-part Spok report. Titled “The Evolution of Mobile Strategies in Healthcare,” part one highlights a number of key points in Spok’s annual survey. The survey results include responses from more than 300 U.S. healthcare professionals, which were gathered in February 2017. Thirty-five percent of respondents held various hospital roles such as quality directors, risk managers, infection prevention specialists and mobility engineers. Another 22 percent of respondents were physicians, 13 percent were nurses, 10 percent were IT staff members and 7 percent were executive leaders.
All the respondents answered questions about their organization’s mobile strategy — though their responses regarding the definition of “mobile strategy” varied across the board. For simplicity’s sake, Spok defined a mobile strategy as something that “brings together elements of security, technology and communications in a collective plan to improve staff productivity and enhance patient care.”
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Top 10 Ambulatory EHR Vendors by Physician Practice EHR Implementations

Choosing a flexible, cost-efficient EHR vendor is vital to meeting the unique needs of ambulatory practices in the healthcare industry.

Kate Monica

April 05, 2017 - While the market for inpatient EHR/EMR systems is mostly dominated by a select group of well-known EHR companies such as Epic Systems and Cerner, the wide range of specialties and practice sizes comprising ambulatory care has allowed for more competition among EHR vendors.
Big EHR vendors with hefty price tags don’t always appeal to smaller practices. With cost, customization, and specialty being major focal points in ambulatory settings, lesser-known EHR vendors have a better chance of gaining traction among physicians on the outpatient side.
The following is an alphabetized list of the top ambulatory EHR vendors according to number of physician practice EHR implementations based on data from Definitive Healthcare.
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Why We Can’t Ignore AI

04/03/2017 By Brian Thomas
Brian Thomas, VP & CIO, Swope Health Services
We know that Artificial Intelligence (AI) is a hot topic right now, yet on the flip side there has been criticism around its hype, especially at HIMSS17 this year. However, we need to continue to invest into AI research and development so we can maximize the benefits, such as lower healthcare costs, improved provider efficiency, more accurate billing, and safer patient care.
It’s unlikely that robots and computers will totally take the place of doctors and nurses, but AI can’t be ignored in its efforts to revolutionize the healthcare industry. Not only does it predict outcomes and improve diagnostics, it also changes the way providers think about how they deliver care, says Forbes. The future possibilities are endless: industry analysts say that 30 percent of providers will use cognitive analytics with patient data by 2018.
Access to big data is essential. Think about how we grew up with the Dewey Decimal system. A trip to the library could take hours as we pored through the stacks trying to find what we wanted. Today, our kids are astonished that we didn’t have Google at our fingertips to learn anything we wanted to know. With the advent of AI, our kids’ kids will be the ones shocked that all their parents had to obtain information was a simple computer and search engine. Just like that, the future takes hold even, when we can’t comprehend the next step.
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Emory Healthcare eICU program saves Medicare millions

Apr 5, 2017 10:21am
Emory Healthcare's eICU program saved nearly $1,500 per patient by streamlining care.
An Atlanta health system saved Medicare $4.6 million during a 15-month span through a telehealth program that shortened length-of-stay and streamlined care for patients in the ICU.
Emory Healthcare reduced Medicare spending by nearly $1,500 per patient between April 2014 and June 2015 through its eICU program, according to a press release. The health system also saw more discharges home and fewer post-acute care facilities admissions, an indication that patients were healthier upon discharge.
The initiative, which used telehealth technology provided by Philips, was designed to allow ICU physicians 24/7 access to critical care patients and was backed by a $10.7 million Health Care Innovation award from the Centers for Medicare and Medicaid Services in 2012. The findings were part of an independent audit conducted (PDF) by Abt Associates on all aware recipients.
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5 things to know about new ONC chief Donald Rucker

Long history of clinical and technology work should benefit the nation’s hub for healthcare IT policy.
April 03, 2017 12:01 PM
The newly named chief of the Office of the National Coordinator for Healthcare Information Technology, Donald W. Rucker, MD, is being lauded as one of the most qualified choices to lead that agency.
He has been emergency room doctor, internal medicine physician, a clinical informatics expert, an inventor, a designer and researcher and innovator and for the past four years, he was professor at Ohio State University, where he taught clinical Emergency Medicine and Biomedical Informatics.
Here are five things you might not know about the new ONC chief:
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Report: Adoption of Telehealth Can Generate Cost Savings for Rural Communities, Hospitals

March 30, 2017
by Heather Landi
The adoption of telehealth technologies in rural areas can result in significant cost savings for hospitals and their communities due to transportation cost savings, lost wages savings, hospital cost savings and increased revenues for local labs and pharmacies, according to a white paper by the NTCA-The Rural Broadband Association.
In the white paper, titled “Anticipating Economic Returns on Rural Telehealth,” Rick Schadelbauer, manager, economic research and analysis at the organization, outlines the case to be made for increasing adoption of telehealth in rural areas, and throughout the country, by keeping patients using local health care services rather than traveling to bigger, nearby cities for health care services. Schadelbauer noted that within the United States, there is a distinct health disparity between rural and non-rural Americans, primarily as a result of demographics and limited access to health care.
Telehealth and telemedicine, or the remote delivery of health care services and clinical information using telecommunications technology, holds potential to improve the quality, cost and availability of health care in rural areas. However, telemedicine is not viable without access to robust, reliable broadband service, Schadelbauer wrote. “Rural areas currently lag in broadband deployment, but continue to make impressive gains due in large part to the efforts of small telecommunications providers. Wireless applications require wireline infrastructure in order to be viable options,” he wrote.
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Hospital EHR Use Helps Improve Weekend Health Outcomes

New research points to EHR use having a positive effect on patient recovery from weekend surgeries.

Kyle Murphy, PhD

Director of Editorial
kmurphy@xtelligentmedia.com
March 30, 2017 - According to researchers from Loyola University Medical Center, hospital EHR use can counteract the weekend effect, a phenomenon wherein health outcomes for patients following weekend surgeries compared to those of their weekday counterparts.
The research published in JAMA Surgery built on a previous study into the benefits of fully implemented EHR systems for mitigating temporal disparities in health outcomes for patients undergoing urgent weekend surgeries.
“Implementation of EHR system is one mechanism to help hospitals combat an important temporal disparity of care, the weekend effect, for patients undergoing urgent general surgical procedures,” write Kothari et al. “Specific components of EHR systems, including electronic operating room scheduling and electronic bed management systems, are most strongly associated with decreasing the odds of the weekend effect.”
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Healthcare pros increasingly using tablets, smartphones for job functions

Execs, IT pros and clinicians are using mobile devices to access clinical information and EHRs, a new HIMSS Analytics study says.
March 31, 2017 02:14 PM
A new HIMSS Analytics study of 129 C-suite executives, IT professionals, clinicians and department heads has found 79.8 percent use tablets and 42.6 percent use smartphones to access the information needed to provide and coordinate care.
On the other hand, 37.2 percent use laptops and 94.6 percent still use desktop computers.

“The use of mobile technology within our daily lives has become habitual,” said Brendan FitzGerald, director of research at HIMSS Analytics. “People can use their smartphone, tablet or laptop to do most everything they need, such as shopping, staying in touch with friends and family, or conducting business. However, the use of mobile technology has not easily translated to clinician needs around providing better patient care.”
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Why EHR optimization is on the to-do list of most CIOs

Published April 04 2017, 4:35pm EDT
Why, if over 95 percent of hospitals have implemented EHRs, are so many planning to invest in improvements or replacements this year?
A new survey of hospital executives showed that 24 percent are conducting a major EHR system upgrade, and 21 percent are replacing their EHR at one or more sites. KPMG’s recent survey of CHIME members found that at least 38 percent of CIOs are investing in EHR optimization projects this year; in fact, they plan to spend more on EHR optimization than any other area of HIT.
These numbers are huge when you consider that most hospital EHRs are newer versions implemented to meet MU attestation requirements. A central reason for the continued need to upgrade or optimize, cited by both groups, was straightforward. Doctors and nurses still don’t like their EHRs. The problem seems straightforward, but it’s not.
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Metabolic syndrome severity calculator outperforms traditional methods

Published March 31 2017, 7:09am EDT
An online calculator for metabolic syndrome is able to predict patients’ risk of developing heart disease and diabetes more accurately than traditional assessment methods.
That’s the finding of a new study of more than 13,000 people that concluded that the online tool was a better risk predictor than evaluating individual risk factors alone.
Traditionally, physicians predict risk for cardiovascular disease, type 2 diabetes and stroke through five factors—increased blood pressure, high blood sugar, excess body fat around the waist, and abnormal cholesterol and triglyceride levels. Using this traditional approach, patients are diagnosed with metabolic syndrome—a cluster of conditions that occur together—if they have at least three of the five abnormalities.
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Mass General’s application helps determine cause of stroke

Published April 04 2017, 7:03am EDT
Researchers at Boston’s Massachusetts General Hospital have developed software that provides evidence-based automated support to physicians for diagnosing the cause of ischemic stroke.
However, determining the cause of such strokes—which occur as a result of an obstruction within a blood vessel supplying blood to the brain—is no small feat.
That’s because there are more than 150 different abnormalities that are potential causes—or etiologies—of ischemic stroke, and about half of patients exhibiting symptoms show more than one possible cause, says Hakan Ay, MD, a vascular neurologist and director of stroke research at Mass General’s Martinos Center for Biomedical Imaging.
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Project launched to create artificial intelligence virtual GP

Laura Stevens

30 March 2017
A project has been launched to create a virtual GP using artificial intelligence and machine learning.
Those behind the project say that the planned virtual GP won’t replace traditional human GPs but be complimentary.
The University of Essex and digital company Orbital Media, in partnership with Innovate UK, started the four-year research initiative with a combined investment of £250,000.
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Bryant says NHS Digital must become more responsive

Jon Hoeksma

30 March 2017
Beverley Bryant, director of digital transformation at NHS Digital, says the organisation needs to undergo a cultural revolution, move away from thinking of programmes “as king”, and become far more responsive to the needs of NHS customers.
She says a change in “mindset” and even “tone of voice” is required from the organisation to enable it to effectively support local NHS trusts, social care providers, CCGs and STPs in achieving their digital aspirations.
The goal she says must be to become a “responsive customer-focused partner of local NHS organisations”, and she argues the establishment of four new regional teams is a vital step in this direction.
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Computerized Clinical Decision Support Systems Linked with Fewer Blood Clots

Alexandra Wilson Pecci, March 28, 2017

Decision support systems integrated with EHR/EMRs have been shown to decrease venous thromboembolism events postoperatively compared with routine care.

Using a computerized clinical decision support system (CCDSS) is linked with a significant increase in the proportion of patients with adequately ordered treatment to prevent blood clots, according to a study published online by JAMA Surgery.
The systems are also linked with a significant decrease in the risk of surgical patients developing blood clots.
According to the study authors, healthcare professionals do not adequately stratify risk or provide preventive treatment for venous thromboembolism (VTE) among surgical patients.
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HIEs have 'reached the limits of their effectiveness,' says Chilmark

Written by Jessica Kim Cohen | March 28, 2017 | Print | Email
Application programming interfaces will solve the healthcare industry's issues with data interoperability, according to a Chilmark Research report.
The report, titled 2017 Clinician Network Management Market Trends Report, provides an overview of the challenges and potential solutions to data interoperability in the healthcare industry.
While document-based health information exchanges have helped healthcare coordination in the past, these approaches "have reached the limits of their effectiveness," according to the report.
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Direct-To-Consumer Telehealth May Increase Access To Care But Does Not Decrease Spending

Published in: Health Affairs, v. 36, no. 3, March 2017, p. 485-491. doi:10.1377/hlthaff.2016.1130
Posted on RAND.org on March 28, 2017
This article was published outside of RAND. The full text of the article can be found at the link above.
The use of direct-to-consumer telehealth, in which a patient has access to a physician via telephone or videoconferencing, is growing rapidly. A key attraction of this type of telehealth for health plans and employers is the potential savings involved in replacing physician office and emergency department visits with less expensive virtual visits. However, increased convenience may tap into unmet demand for health care, and new utilization may increase overall health care spending. We used commercial claims data on over 300,000 patients from three years (2011–13) to explore patterns of utilization and spending for acute respiratory illnesses. We estimated that 12 percent of direct-to-consumer telehealth visits replaced visits to other providers, and 88 percent represented new utilization. Net annual spending on acute respiratory illness increased $45 per telehealth user. Direct-to-consumer telehealth may increase access by making care more convenient for certain patients, but it may also increase utilization and health care spending.
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Donald Rucker, former Siemens exec, named ONC national coordinator

Mar 31, 2017 2:13pm
Don Rucker, former Siemens executive, will head the ONC.
Former Siemens Chief Medical Officer Donald Rucker, M.D., has been named the new national coordinator for the Office of the National Coordinator for Health IT.
Rucker was among those rumored to be considered for the position. On Friday, he was listed as the national coordinator in the Department of Health and Human Services directory. He is currently an adjunct professor in the bioinformatics department at the Ohio State University College of Medicine.
A spokesperson with HHS declined to comment.

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Health IT community applauds new ONC pick

Apr 3, 2017 10:08am
Health IT leaders reacted favorably to news that former Siemens executive Donald Rucker would take over as national coordinator.
Health IT industry leaders and associations reacted favorably to news that former Siemens executive Donald Rucker, M.D., would serve as the national coordinator for health IT, highlighting his vast industry experience in both the provider and vendor communities.
On Friday, FierceHealthcare reported that Rucker had been identified in the Department of Health and Human Services directory as the national coordinator at the Office of the National Coordinator for Health IT (ONC). Rucker served as the chief medical officer at Siemens for 13 years before transitioning to a career as a professor of clinical emergency medicine and biomedical informatics at Ohio State University in 2013.
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ONC updates health IT safety guides for providers

Published March 29 2017, 7:25am EDT
The Office of the National Coordinator for Health Information Technology has released updated guides to help providers assess the safety and usability of their respective electronic health record systems.
First published in January 2014, the ONC Safety Assurance Factors for EHR Resilience (SAFER) guides are voluntary provider self-assessments that take the form of vulnerability checklists as well as evidence-based recommendations and best practices for how to safely use health IT.
Recommended best practices in the SAFER guides help organizations know what to do to optimize the safety and safe use of their EHRs. Specifically, the guides address nine areas—high-priority practices; organizational responsibilities; contingency planning; system configuration; system interfaces; patient identification; computerized provider order entry with decision support; test results reporting and follow-up; and clinician communication.
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Physicians spend half of their time face-to-face with patients, half on the computer, study finds

Apr 3, 2017 6:40pm
Doctors are splitting time between patient visits and computers, study finds.
Doctors are splitting their time pretty evenly between face-to-face visits with patients and time on the computer, a new study found.
The study of 471 primary care physicians, published in Health Affairs, found physicians spent an average of 3.08 hours on office visits and 3.17 hours on what was called desktop medicine, such as typing progress notes in an electronic health record, each day. 
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France still seeks an electronic health record

The idea of a ‘dossier médical personnalisé’ (DMP, or electronic health record) for every French citizen was first inaugurated in 2004. Now, over 10 years and €500 million later, we can look at the pros and cons encountered during this still incomplete journey and consider if similar projects would be a useful addition to healthcare administration in other European countries, or not.

Report: Jane MacDougall
The main DMP aim was that all doctors involved in a patient’s treatment would have immediate access to a complete medical record, to avoid repetition of investigations/prescriptions or risk from overlooked illnesses etc., which can occur when relying on an oral medical history.
Also wanted: Faster exchange of secure information between the various healthcare structures involved in a case e.g. an in-patient having exams in different locations. Another long-term aim was to use the information collected for epidemiological and eco-epidemiological syndromic surveillance to help in the early detection of health problems, as has been the case in the USA from 2013-2014.
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78% of Physicians 'More Prepared' When Patients Enter EHR Notes Ahead of Appointments

Alexandra Wilson Pecci, April 4, 2017

An OpenNotes study found that letting patients type pre-visit agendas into the electronic health records system before seeing the physician made appointments more efficient and improved communication.

Joann Elmore, MD, MPH, professor of medicine at the University of Washington School of Medicine, is a slow typist. So slow, that one of her patients grabbed the keyboard away from her while she was entering the patient's information into the electronic health record.
"Come on doc, let me type," the patient said. She and asked her Elmore what she should write. Elmore told her she should decide. It was about her, after all.
That simple idea of letting a patient contribute to the medical record in their own words is the central focus of a new study published in the Annals of Family Medicine.
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Enjoy!
David.

Friday, April 14, 2017

There Are Alternative Approaches To The Sharing Of Medical Records With Patients And Without A Centralised myHR. I Wonder Will They Be Considered At Any Point?

This appeared last week:

Patients to get access to GP records via NHS.uk in September 2017

Laura Stevens

6 April 2017
Patients will be able to access their GP record via the revamped NHS.uk from September 2017, according to NHS Digital.
NHS Digital’s latest board papers, which were published 28 March, mention the aim and state a target go live date of 30 September 2017. A spokeswoman subsequently confirmed the timing to Digital Health News.
A spokesman for TPP, providers of the SystmOne EPR which is widely used in primary care, said the company is working with NHS Digital to give patients access to their GP record via NHS.uk. “TPP is providing access to SystmOnline APIs.”
He said the patient will be able to see their record, request and order repeat medication, view and book appointments, and exchange messages with their practice.
“We are working towards a September deadline for the personal health record to be available to everyone in the country.”
The citizen identity service is also due to go live on 30 September.
This will allow patients to securely login to NHS.uk.
Just so we are all clear there a ways of providing health IT to citizens without creating a risky privacy invading database which exists to be mined (maybe) at the Government’s pleasure. I wonder what alternative approaches will be explored in the upcoming ADHA Strategy. Not many I suspect!
David.

Thursday, April 13, 2017

The Macro View – Health, Financial And Political News Relevant To E-Health And The Health Sector In General.

April 13, 2017 Edition.
A complicated week with Mr Trump pulling a big surprise with an attack on a Syrian airbase after a chemical attack by Mr Assad. From non-interventionist to interventionist while President Xi was even in to room – Amazing stuff!
Here at home it is all about house prices and if/when greed and fear of missing out result in economic chaos and pain for all of us. There is risk and the regulators need to get their arms around the issue and stabilise things quickly. To not do so could mean things do not go well and is just possible things have already gone too far. Time will tell! Clearly to ignore the issue and hope it goes away is folly.
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Here are a few other things I have noticed.
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National Budget Issues.

Scott Morrison’s May Budget challenge and his business tax plan

April 2, 201711:54am
Staff writers, wiresNews Corp Australia Network
TREASURER Scott Morrison has not given up pursuing the remainder of the government’s 10-year business tax plan and will present the next phase to the Senate when the government believes it will pass.
The parliament on Friday agreed to a tax rate of 27.5 per cent for businesses with a turnover of up to $50 million, to be phased in over the next three years, or “stage one of the plan”, as Mr Morrison describes it.
“We haven’t moved away from this at all,” he told ABC television’s Insiders. “We remain absolutely committed to this plan because this plan is what is going to attract investment.” He does not necessarily believe in waiting until after the next election, given the Senate crossbench has already shifted from supporting a rate reduction for businesses with a turnover of up to only $10 million.
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Sorry folks, this ain't no property bubble

Jessica Irvine
Published: April 4, 2017 - 2:53PM
Believe me, no one is keener than me to see a property bubble burst.
But sadly – for would-be buyers, at least – I just don't see it happening.
Sure, there are risks.
If it turns out that banks have been lending to people who really can't afford it, then we have a problem when interest rates start to rise.
But banks insist they stress test customers for a 2-percentage-point rise in interest rates and require "interest-only" borrowers to prove they could afford to repay principal too, if required.
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RBA keeps rates on hold amid increasing concern about house prices

Peter Martin
Published: April 4, 2017 - 4:04PM
The Reserve Bank of Australia has held the cash rate steady at 1.5 per cent for the 12th consecutive month amid growing pressure for it to increase rates to contain soaring house prices.
The futures market is pricing in no change in rates until late 2018, when there will be an increase.
In the year to March 31, Sydney home prices climbed 18.9 per cent, Melbourne prices 15.9 per cent and the average of capital city prices 12.9 per cent.
In the past week, both the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission have announced tighter rules and increased supervision of banks' lending to investors in an effort to contain the growth in lending to investors to 10 per cent.
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  • Updated Apr 3 2017 at 9:47 PM

Budget could contain tax increases, says Mathias Cormann

Finance Minister Mathias Cormann has hinted there could be tax increases in the May budget but says the government will adhere to its medium-term target of the overall tax take not exceeding 23.9 per cent of the economy.
While the budget is expected to include changes to the Petroleum Resources Rent Tax designed to deliver billions more in revenue, Senator Cormann is fighting to protect the tax-to-GDP ratio from blowing out. He, along with others, is adamant that the deficit levy be abolished on July 1, as promised, and he is fighting internally against proposals to curb the capital gains tax deduction for investors to try and cool the housing market.
The Australian Financial Review has previously reported the government has been considering its own changes to CGT as part of its housing affordability policy and a recent freedom of information request lodged by Labor revealed extensive work had been done by Treasury.
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Beware of politicians selling empty promises of jobs and growth

Ross Gittins
Published: April 4, 2017 - 11:58AM
What's the four-letter word politicians of both stripes most use to bamboozle voters? Jobs. Or, as Neville Wran, former NSW premier and never given to understatement, used to say Jobs, Jobs, Jobs.
Economists and business people worship at the shrine of Growth because it raises their material standard living. Materialism is the god of our age.
But growth is rarely what the pollies try to sell the public on. No, what presses the right button with ordinary folk is jobs.
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Federal budget to tackle illegal cash economy costing up to $15b in lost revenue

Nassim Khadem
Published: April 5, 2017 - 8:12AM
The Turnbull government is expected to announce some interim measures in the May federal budget aimed at beginning a long journey to claw back up to an estimated $15 billion in lost federal tax revenue and illegitimate welfare payments due to widespread cash economy activity.
The man heading the federal government's "Black Economy Taskforce", Board of Tax chairman Michael Andrew, told Fairfax Media he was shocked by the scale of the problem, with exploitation of vulnerable workers such as students and temporary visa holders rife.
The black economy was hard to tackle because Australians viewed taking cash-only payments and not declaring it as "almost a national sport", Mr Andrew said.
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'Jobs and growth': $24 billion company tax cut could be worth just 0.2 per cent to economy

James Massola, Eryk Bagshaw
Published: April 5, 2017 - 7:04AM
The Turnbull government's $24 billion company tax cut will boost the economy by less than 0.2 per cent when fully implemented, according to a preliminary analysis by the Grattan Institute.
The federal government has been resisting pressure from Labor to outline the growth dividend from the cuts, which will see company tax fall to 25 per cent over a decade for companies with a turnover of up to $50 million, after they passed the Senate last week. 
Prime Minister Malcolm Turnbull and Treasurer Scott Morrison said on Tuesday the company tax cut would deliver "substantial economic growth", but would not quantify the contribution to GDP.
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Growing inequality is a 'ticking time-bomb', Nobel prize-winner Muhammad Yunus warns Australia

Latika Bourke
Published: April 4, 2017 - 9:22AM
A renowned Nobel Peace Prize-winning economist and entrepreneur, who is considered the father of microfinance, has warned that growing inequality is a "ticking time-bomb" that will "explode" the political system if it is not addressed, arguing the amount of wealth locked up with the wealthiest in society is not tenable.
Professor Muhammad Yunus, who spoke to Fairfax Media ahead of an Australian visit this week, has also called on the Australian corporate sector to radically transform the way they think and to create "selfless " or "social businesses" that solve societal issues with market-based solutions.
Professor Yunus said business needed to remember that humans were not just "money-making robots and that capitalism could and should be humane."
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APRA plays Santa Claus for bank CEOs

Michael Pascoe
Published: April 6, 2017 - 12:25AM
Hats off to Westpac CEO Brian Hartzer for the use of understatement by declaring Australian Prudential Regulation Authority's (APRA) alleged crackdown on real estate investors wouldn't have "any particular profitability impact".
Boosting profits by a few billion tends not to hurt. And higher profits tend to lead to higher bonuses. APRA is playing Santa Claus for bank CEOs.
No toasting of any gullible media though, who swallowed the line that investor fervour would be noticeably cooled by reducing the proportion of new interest-only loans from 40 per cent to 30 per cent. Good for banks that will charge higher rates to encourage a proportion of investor customers to switch to principal-and-interest loans, negligible impact on the size of the investor book that can continue to grow by up to 10 per cent a year.
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Australian Bankers Association head Anna Bligh concedes banks face 'implosion' of public trust

Heath Aston, political correspondent
Published: April 5, 2017 - 2:31PM
Banks are dealing with an "implosion of trust and an explosion of scrutiny", former Queensland premier Anna Bligh has warned.
In her first speech since her controversial appointment as head of the Australian Bankers Association lobby group, Ms Bligh said it was her mission to reverse a "profound and fundamental shift in trust" against institutions like banks that is happening all over the world.
"Banks here in Australia are under an unprecedented level of pressure and scrutiny. I think there is a direct correlation between the implosion of trust and explosion of scrutiny," she told the Australian Financial Review's wealth and banking summit in Sydney on Wednesday. 
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RBA governor Philip Lowe blames lax lending, tax concessions for house prices

Peter Martin
Published: April 5, 2017 - 7:44AM
Reserve Bank governor Philip Lowe has intervened in the debate over tax ahead of the May budget, blaming the tax arrangements for property investors as well as lax bank lending standards for the explosion in Sydney and Melbourne home prices.
In remarks addressed to a private dinner between Reserve Bank board members and the Melbourne business community to which television cameras had been invited, Governor Lowe said too many loans were being made "where the borrower has the skinniest of income buffers".
In some cases banks were "assuming that people can live more frugally than in practice they can", leaving little for them to live on if things went wrong.
Close to 40 per cent of housing loans (and 60 per cent of investment loans) were interest-only, not requiring the scheduled repayment "of even one dollar of principal at least in the first years of the life of the loan; only interest".
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  • Updated Apr 6 2017 at 2:58 PM

Malcolm Turnbull backs RBA warning as household debt hits new record

Household debt is rocketing towards 190 per cent of disposable incomes, ramping up pressure on the Reserve Bank of Australia and regulators to take action that avoids a US-style debt crisis.
Prime Minister Malcolm Turnbull endorsed Reserve Bank governor Philip Lowe's warning that household debt is rising too fast and linked the high burden of servicing loans to the need for the Commonwealth to manage its debt.
A key reason for maintaining the government's AAA credit rating is that credit agencies assume Canberra will bail out any banks that are blind-sided by a housing crisis.
"All of the warnings that the Reserve Bank and APRA have made about rising levels of debt are well made," Mr Turnbull said in Sydney on Wednesday. "That's their job, the system is working.
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  • Updated Apr 6 2017 at 11:00 PM

Housing set for 'orderly' correction

The world's biggest ratings agencies have warned of an unwinding of Australia's overheated house prices, but say the strength of the banking system and its regulators would ensure any falls are "orderly".
The brutally frank assessment emerged on an explosive second day of The Australian Financial Review Banking and Wealth Summit, where Treasurer Scott Morrison backed the regulators' attempts to quell demand for home loans and improve the stability of the banking system.
Representatives from Fitch Ratings, Moody's and S&P Global Ratings agreed that although the Australian banking system was among the best-regulated in the world, risks were rising in line with growing levels of household debt and property prices.
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  • Updated Apr 7 2017 at 8:30 AM

Major banks short at least $20 billion of equity

One of this column's firmest convictions has been that the major banks must continue deleveraging their balance sheets, which in respect of their biggest asset exposure (home loans) remain more than 40 times their equity capital base. This did not jive with the prevailing zeitgeist, with many bank investors, analysts and executives crowing that the capital raising debate was "over".
Yet arguably Australia's finest regulator, Wayne Byres, once again "shocked" complacent stakeholders during the week with a hard-hitting message that materially more equity capital was coming.
This will likely result in the majors targeting core risk-weighted common equity tier one (CET1) capital ratios above 10 per cent, which CLSA's Brian Johnson estimates leaves them pro-forma short about $20 billion assuming no further rises in the risk weights applied to investment property loans, which account for 35 per cent of their housing books. If they do climb, which is probable, then the shortfall expands by $10 billion for every 10 percentage point increase in risk weights.
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Banks are still lending too much to property buyers

Noel Whittaker
Published: April 7, 2017 - 7:00AM
Real estate continues to dominate the headlines in tandem with speculation on the future of the housing market as the banking regulator's crack down on interest-only loans begins to bite.
Bank of Queensland chief executive John Sutton was front-page news last week when he revealed that some of his competitors were offering maximum loans of up to 30 per cent more than his bank was prepared to write. He finished with a timely warning: "This will end in tears."
To test the veracity of that statement I spoke to a friend who works for one of the major banks. I asked him to run the numbers to let me know how much his bank would lend to a couple earning $85,000 a year each, with an adequate deposit and no debts. I was astounded to learn they could qualify for a loan of $1 million.
Let's do the calculations with the figures rounded for ease of reading. Income tax including Medicare Levy on an $85,000 a year salary would be $21,000. Therefore, our hypothetical couple should be receiving combined take-home pay of $128,000 a year.
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Scott Morrison and Liberals seek scapegoat for tax fumbles

  • The Australian
  • 12:00AM April 7, 2017

John Durie

When your leadership fails you, cast around for someone to blame — and that’s what Scott Morrison is doing right now.
That’s the reaction of one senior businessperson to the Treasurer’s pitch that big business has failed to come to the party supporting a tax cut for the big end of town.
Morrison blamed a lack of business support and business’s own lack of credibility for the failure to get a cut in big company taxes.
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Scott Morrison eyes $4 billion budget bonus from resources price boom

James Massola, Eryk Bagshaw
Published: April 5, 2017 - 8:00PM
Treasurer Scott Morrison is eyeing a $4 billion bonus from booming iron ore and coal prices, a month out from the May 9 budget, and is likely to plough it back into reducing the federal deficit.
Government MPs familiar with budget deliberations confirmed to Fairfax Media that forecast deficits of $36.5 billion in 2016-17 and $28.7 billion in 2017-18 could come in lower than expected.
Mr Morrison last month told Parliament the government's "fiscal strategy is to reduce the deficit and to reduce debt on every opportunity, if there is any improvement in commodity prices or improvement in the parameters that would lead to that result".
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5 Apr 2017 - 2:58pm

Business frustration with Canberra grows

Business groups are becoming increasingly frustrated by the slow pace of reform and the political bickering that goes with it.
Source:
AAP 5 Apr 2017 - 2:58 PM  UPDATED 5 Apr 2017 - 2:58 PM
A business leader has vented his frustration at the state of modern day politics where even the simplest of measures strikes disagreement and risks Australia falling behind the rest of the world.
Australia Industry Group chief executive Innes Willox says the lack of agreement at both the federal and state levels is damaging confidence and more importantly business investment.
"There is deep and endemic frustration about not just the pace of reform, but the nature of the debate in Australia, the inability to agree on even quite simple measures," Mr Willox told the National Press Club on Wednesday.
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Our complacent reliance on foreigners’ savings

  • The Australian
  • 12:00AM April 7, 2017
Savvy consumers are careful with debt, just as citizens ought to be troubled when government relies heavily on foreign savings. Commonwealth net debt is heading for $317 billion by June but many Australians are complacent about it. Truth is, they are relieved when the spurious “fairness” argument trumps yet another reform of middle-class welfare. They feel less pressure to be self-reliant and to pay their own way, thanks to populist politics. The result is massive borrowing — not for growth-spurring infrastructure but to cover recurrent spending in big-ticket areas such as health, welfare and social security. And this demand on funds will only increase as our population ages, leaving the tax and transfer system reliant on ever fewer workers. In 2015, there were 4.5 working age people to support one person aged 65 or over. By 2045, that ratio will fall to three.
As economics editor David Uren reported yesterday, the government will have to borrow­ more than $60bn a year over the next four years to finance­ continuing budget defic­its and roll over existing debts. Treasurer Scott Morrison’s coming budget will be the 10th in a row with a big deficit. We are spending more than $1bn a month on interest. And commonwealth debt is unlikely to be paid off until 2047 at the earliest. The Howard-Costello budget surpluses are a distant memory. Debt has risen at an average rate of $50bn a year since the 2008-09 financial crisis, when Labor’s temporary stimulus became a permanent bloat of recurrent spending. The 2014 Abbott-Hockey budget represented a serious attempt to rein in unsustainable spending but the politics were mishandled. Ever since, obstructionist Labor and a populist Senate have blocked fiscal repair. Morrison has managed only modest savings measures. As Uren wrote, the Turnbull government’s strategy is failing. “At best, the savings measures to date have stopped the deficits growing but have made no meaningful impact on narrowing them.” The government is left with the fragile hope that the economy will speed up enough for revenue to rebound. It protests that bringing a sense of urgency to budget repair might only undermine confidence. Maybe so, but putting off tough talk means a more painful adjustment to fiscal reality when it does come.
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Morrison budget vow to ease household costs

  • The Australian
  • 12:00AM April 7, 2017

Sarah Martin

Michael Roddan

Scott Morrison has pledged next month’s budget will put downward pressure on housing and energy costs, as he seeks to play down broader concerns about Australia’s rising household debt levels.
The Treasurer has flagged a housing affordability package will be a keystone of the May 9 budget, and told industry and business leaders yesterday that the government would continue its “unapologetic focus” on jobs and growth “because lifting the living standards of hardworking Australians and their families depends on jobs and growth.
“Jobs and growth are significant contributors to wealth,” Mr Morrison said. “We will ensure the budget works to place downward pressure on the cost of living, especially on energy and housing.”

Australia has $1 trillion foreign debt. Should we be worried?

Ross Gittins
Published: April 8, 2017 - 12:15AM
When you consider how many people worry about the federal government's debt, it's surprising how rarely we hear about the nation's much bigger foreign debt. When it reached $1 trillion more than a year ago, no one noticed.
That's equivalent to 60 per cent of the nation's annual income (gross domestic product), whereas the federal net public debt is headed for less than a third of that – about $320 billion – by June.
Similarly, when you consider how much people worry about the future of the Chinese economy, American interest rates and all the rest, it's surprising how little interest we take in our "balance of payments" – a quarterly summary of all our economic transactions with the rest of the world.
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Why we need to worry about the level of Australian household debt

Elizabeth Knight
Published: April 8, 2017 - 12:15AM
The balance sheets of Australian households with a mortgage are dangerously exposed to any fall in house prices. It isn't just that household debt relative to disposable income has reached the record high of 189 cent, it's that households' ability to service that debt is potentially a ticking time bomb.
If you look at the health of a household balance sheet in the same way as a company's balance sheet there are two things that come into the picture, the first is the size of the debt against the assets and the second is the ability to pay interest based on the income.
The main reason the average Australian household balance sheet doesn't look like a crisis in the making is that the asset side of the ledger is healthy because house prices have appreciated enormously.
  • Updated Apr 7 2017 at 9:00 PM

Housing correction 'won't be orderly'

Ask respected property analyst Martin North what form the coming downturn in the housing market might take and "orderly" is not the description he uses.
Instead North anticipates a much more significant downturn in the investor-driven, debt-laden markets like Sydney and Melbourne.
"Orderly" is how S&P Global Ratings director Sharad Jain described the likely unwinding of the overheated housing market, where annualised house price growth is running close to 20 per cent in Sydney and Melbourne.
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The $22 billion cost of work-related tax deductions to be tackled in federal budget

Nassim Khadem
Published: April 8, 2017 - 12:15AM
The Turnbull government wants to take a stab at reducing an estimated $22 billion in tax deductions for work-related expenses each year, and may consider introducing a standard deduction for all taxpayers or doing away with certain deductions in favour of lower tax rates.
A government inquiry pushed by Treasurer Scott Morrison has been examining whether a host of work-related tax deductions claimed by individuals every year could be scrapped or reduced, and instead replaced with low personal tax rates.
Mr Morrison last year asked his department to look into a universal cap on income tax deductions that would apply to work-related expenses, as well as housing tax breaks including negative gearing and the capital gains tax concession, which he later ruled out any changes to.
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Health Budget Issues.

Why aren't GPs more concerned about Health Care Homes?

3 April 2017
Money is important: it’s what the Medicare rebate freeze anger is all about; it’s why the GP co-payment plan obliterated Abbott’s premiership; it’s why the debate about bulk-billing rates and their effect on clinical practice won’t die any time soon.
This is stating the obvious so far. But there’s another very obvious issue missing from this GP grievance list.
Why is there no noise, no public debate, no discussion from grassroots GPs about the looming Health Care Homes reforms?
Yes, the phrase ‘Health Care Homes’ hits you with the same dynamism as news of a summer sale at Bunnings Warehouse.
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Health Insurance Issues.

Australian Medical Association reveal best and worst health funds as premiums rise on April 1

Sue Dunlevy, National Health Correspondent, News Corp Australia Network
March 31, 2017 10:00pm
EXCLUSIVE
DOCTORS have revealed the best and the worst health funds in a new report card that shows some policies will leave their members with gap fees on half of all medical services.
The Australian Medical Association has warned people to avoid “junk” policies as they look to switch funds in the wake of the $200 premium hike that takes effect today (Saturday).
The AMA has released its annual Private Health Insurance Report card which says the amount health funds pay in benefits can vary widely between states with some health funds providing benefits for cataract surgery that are 20 per cent lower in one state than another.
Payouts for knee replacements are 18 per cent higher in some states than others.
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Insurers again blame Prostheses List for high premium costs

  • The Australian
  • 12:00AM April 6, 2017

Sarah-Jane Tasker

Australia’s top health insurers have continued to call for regulatory reform and sector collaboration to stop consumers cancel­ling policies because of afford­­ability concerns.
Nib’s group executive of Australian residents health insurance, Rhod McKensey, said conditions remained soft as consumers listed affordability as a key concern.
“Rising healthcare spending and an increasing ratio of tax­payers to retired, often high-cost, Australians means on balance any policy or regulatory change needs to encourage private health insurance participation,” he said.
“Some real prospects to improve system efficiency include further prosthetic pricing, risk equalisation and community rating ­reforms. New Health Minister Greg Hunt seems very determined to improve system ­efficiency and we will continue to prosecute for change.”
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Industry specific health funds find favour

  • The Australian
  • 12:10AM April 8, 2017

Verity Edwards

In the past 30 years the health insurance industry has seen massive changes as premiums rise, needs differ and the number of people taking out cover drops per capita.
Debate is raging over premium rises and over the demands public hospitals place on private patients to use their own insurance to help cover funding shortfalls.
As people contemplate cutting their level of cover or withdrawing entirely to save money, Michael Oertel has watched the not-for-profits he has headed for the past 22 years, Police Health and Emergency Services Health, increase membership. His staff has grown from two to 50.
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Concern as health funds limit mental health cover

April 8, 20176:18pm
Sue Dunlevy News Corp Australia Network
EXCLUSIVE
Health fund members are facing huge out of pocket costs for mental illness treatment as funds move to restrict cover for mental health to drive down premiums.
The move is alarming mental health advocates who claim it is happening by stealth and catching patients unaware.
Many funds are now only providing cover for mental health treatment in a private hospital in top cover policies.
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Superannuation Issues.

Understanding ‘total superannuation balance’ crucial for SMSFs

  • Monica Rule
  • The Australian
  • 12:00AM April 8, 2017
As we move towards July 1 and the biggest suite of changes to superannuation rules that most advisers have ever seen, the term “total superannuation balance” is something that all superannuation fund members must come to understand.
Up until now, many articles have been written on the $1.6 million transfer balance cap. This is the total amount an SMSF member can have on the day they start their retirement pension account (from July 1).
Separately, a member’s total superannuation balance is also struck at a figure of $1.6m but is a rolling limit — it is to be assessed every year.
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I look forward to comments on all this!
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David.

This Is A Really Useful Set Of Basic Resources On Health IT And Safety.

This appeared  a few days ago.

ONC updates health IT safety guides for providers

Published March 29 2017, 7:25am EDT
The Office of the National Coordinator for Health Information Technology has released updated guides to help providers assess the safety and usability of their respective electronic health record systems.
First published in January 2014, the ONC Safety Assurance Factors for EHR Resilience (SAFER) guides are voluntary provider self-assessments that take the form of vulnerability checklists as well as evidence-based recommendations and best practices for how to safely use health IT.
Recommended best practices in the SAFER guides help organizations know what to do to optimize the safety and safe use of their EHRs. Specifically, the guides address nine areas—high-priority practices; organizational responsibilities; contingency planning; system configuration; system interfaces; patient identification; computerized provider order entry with decision support; test results reporting and follow-up; and clinician communication.
Each guide contains 10 to 25 recommended practices that can be assessed as fully implemented, partially implemented or not implemented.
“These checklists allow you to work through a really simple format for asking yourself questions about your system as it exists right now,” says Rebecca Freeman, ONC’s chief nursing officer. “It gives you the chance to systematically identify gaps or hotspots that may need a little attention.”
Key updates to the SAFER guides include:
  • The Test Results and Follow-up Reporting Guide, which recommends practices to optimize the safety and safe use of the EHR with respect to diagnostic testing, calls for improving communication of abnormal results to patients. It’s based on recommendations from a 2015 National Academy of Medicine report.
  • The Contingency Planning Guide, which identifies recommended safety practices associated with planned or unplanned EHR unavailability, addresses best practices for prevention and mitigation of ransomware attacks as well as new recommendations about “downtimes”—those times when systems are completely unavailable or partially unavailable, when response times are unacceptably slow.
Freeman notes that she came to ONC “out of the implementation space” where she has “implemented—from start to finish—these health records” in ambulatory and community hospital settings. At the same time, she contends that, despite widespread adoption of EHRs by provider organizations “they’re not super user-friendly for many of our clinicians,” regardless of the healthcare environment in which the systems operate.
“Many of the reasons for usability and user experience issues have to do with the decisions that were made when the system was being put in place,” says Freeman. “What we need to focus on now is how to make the systems more usable and really keep an eye towards safety.”
More here:
Here is the link to the information and resources:
There is a great deal of useful material here to be downloaded and learnt from.
David.