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 01, 2017

Weekly Overseas Health IT Links – 01st 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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HL7 publishes Release 3 of FHIR Standard for Trial Use

Published March 23 2017, 7:15am EDT
Health Level 7 International has published Release 3 of its Fast Healthcare Interoperability Resources Standard for Trial Use (STU), moving it closer to a normative version of FHIR.
According to HL7, FHIR STU 3 is the “culmination of 18 months of extensive work to incorporate changes and enhancement requests received from implementation partners across the world” including the Argonaut Project, an industry-wide effort to accelerate the development and adoption of the emerging standards framework.
 “Release 3 represents a significant milestone for HL7 FHIR, demonstrating the continued evolution of the FHIR platform and a promise for interoperability, which it represents,” says HL7’s CEO Chuck Jaffe, MD. “It is a tribute to the hundreds of individuals worldwide who have contributed to the standard’s development and thousands to its implementation.”
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Halamka: Meaningful Use, HIT certification program need reforms

Published March 24 2017, 7:33am EDT
The Meaningful Use program is stifling technical innovation and lacks a focus on outcomes-based care, while the certification program is “filled with outdated requirements” and is a significant drain on health IT developer resources.
That’s the contention of John Halamka, MD, outspoken chief information officer at Boston’s Beth Israel Deaconess Medical Center.
“Meaningful Use served a very useful purpose when (National Coordinator for Health IT) Dave Blumenthal did Stage 1—which is, it built a floor, and it ensured that doctors and hospitals had the basics of functionality that would be foundational for anything we’d do in the future,” says Halamka, who’s also been active on federal HIT committees.
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Babylon Health app will be among first on NHS “digital tool” library

Ben Heather

17 March 2017
Five apps will help launch NHS’s new digital tool library, including the private video consultation on-demand service Babylon Health.
A presentation to the National Information Board last month reveals that five “demonstrator apps” will be launched in September this year.
Visitors to NHS.uk, the successor to the NHS Choices website that will host the digital tool library, will be able to “navigate to local demonstrators of care specific enabled apps”.
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TPP sharing furore a reminder of the long shadow cast by care.data

Ben Heather

24 March 2017
Care.data, the now defunct NHS patient data sharing scheme, casts a long shadow.
Even when not acknowledged, the fears that the scheme fostered, that the NHS was using, perhaps even selling, our medical data without our say-so, persists.
That fear erupted again this month, as reports emerged that the Information Commissioner’s Officer has raised “data protection compliance concerns” about TPP’s SystmOne.
SystmOne is the second most popular GP electronic record, used by 2700 practices and holding the record of millions of patients.  It’s important that the information held is secure.
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For one senior living community, EHRs help high-cost patients find the right care

Mar 24, 2017 8:57am
EHRs helped Juniper Communities connect seniors with chronic conditions to the right provider.
An innovative integrated care model that enabled seniors to transmit medical information to various providers and specialists could turn out to be a huge cost savings for Medicare.
Juniper Communities, which operates senior communities, cut hospitalization rates in half among its residents and reduced hospital readmission rates by 80% by improving care coordination through high-tech, high-touch initiatives. Using an upgraded EHR system, Juniper seamlessly transmitted up-to-date patient records to the appropriate care provider.  
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Eric Topol: Technologies, genomics are pushing adoption of personalized medicine

Mar 24, 2017 12:15pm
Renowned digital health advocate Eric Topol said genomics is "probably the biggest [health-related] breakthrough in the last 50 years."
Digital apps, data, virtual doctor visits and genomics. Together, these innovations are giving the healthcare industry one last push into truly personalized care.  
That’s what Eric Topol, M.D., director of the Scripps Translational Science Institute, professor of genomics at the Scripps Research Institute and a longtime digital health advocate, told the audience at Arizona State University’s McKenna Lecture, according to ASU Now.
Topol told attendees that “genomics is probably the biggest [health-related] breakthrough in the last 50 years,” allowing physicians and researchers to design personalized treatments that target specific conditions. Genomics serves as the bedrock of ongoing research and initiatives directed at precision medicine. In a recent survey, 40% of clinicians and healthcare executives said genomics data will be useful in the next five years.
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Chilmark: HIE models have reached their limits

Research firm said that the transition to value-based care is driving a need for diverse data flows and APIs to more effectively supply and consume data.   
March 22, 2017 11:26 AM
As the healthcare industry continues its focus on value-based care and payments, data interoperability is becoming more critical than ever, Chilmark Research concluded in its most recent report.
Chilmark analysts said messaging-based and document-centric models of health information exchange have reached their limits.
Instead, value-based care is driving the need to assess risk across a population and effectively manage that risk across a distributed clinical care delivery network. This requires far richer, diverse information flows across a greater diversity of market participants, Chilmark researchers note.
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6 health IT billionaires make Forbes list

March 22, 2017 07:23 AM
These are billionaires you probably know
Forbes is out with its annual list of billionaires, and the roster resembles last year’s list, with the top 10 billionaires pretty much who you might expect, with Bill Gates of Microsoft leading the pack – again, with a net worth of $86 billion. He’s followed closely by multi-national conglomerate Bershire-Hathaway’s Warren Buffett, with a net worth of $75.6 billion.
Incidentally, the top 10 billionaires are all men.
It was a record year for the richest people on the planet, according to Forbes. The number of billionaires jumped 13 percent to 2,043, up from 1,810 last year.
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Opportunities for providers as seniors adopt digital healthcare

By Natasha Egan on March 24, 2017 in Technology
A majority of Australian seniors are using digital devices to manage their health, signalling a critical role for consumer-focused technologies in aged care, new report finds.
The report draws on Accenture’s 2016 survey of 7,840 consumers in seven countries – including 241 Australians aged over 65 – and their views on health and healthcare technology.
With a majority of older people reporting they use technology to manage their health at least monthly, the analysis concluded there were many opportunities for aged care providers to offer digital services to Australia’s four million seniors.
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DeepMind Health is in talks with NHS trusts across England

Laura Stevens

20 March 2017
Google’s artificial intelligence subsidiary is in talks with NHS trusts across the country to implement its technology, but says that the cheap introductory prices won’t last.
DeepMind Health deployed its acute kidney injury (AKI) alerting app, Streams, at the Royal Free London NHS Foundation Trust, and has signed up Imperial College Healthcare NHS Trust for a similar deal.
DeepMind also has research partnerships at Moorfields Eye Hospital NHS Foundation Trust and University College London Hospitals NHS Foundation Trust.
Mustafa Suleyman, DeepMind’s co-founder and head of applied AI, told Digital Health News that “there are not many trusts that we haven’t spoken to”.
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ICO moves to calm controversy over TTP patient data sharing

Ben Heather

21 March 2017
The Information Commissioner’s Office (ICO) says thousands of GPs using TPP should not switch off “enhanced” information sharing, despite ongoing concerns about the security of patient information, due to the potential impact on patient care.
Controversy over security in TPP’s SystmOne, the electronic patient record systems used by about 2700 GP practices in England, reignited over the weekend, after it was picked up by the Telegraph.
The Telegraph reported that that the security of up to 26 million patients medical records could at risk because of a sharing function in SystmOne, which potentially allowed patient records to be viewed by “thousands of strangers”.
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Telemedicine saves time, travel costs, even air quality, new study finds

March 22, 2017
While telehealth policies, technological advancements and utilization continue to grow, whether it actually reduces healthcare costs and improves outcomes is still a point of some contention. As the bulk of such analysis focuses on the bottom line of health plans and employers, researchers at University of California Davis instead are looking on how it impacts patients at a more basic level: driving costs.
Spanning across two decades – and undoubtedly many fluctuations in gas prices and internet connectivity capabilities – the study, which was published in the online journal Value in Health, examines 18 years of UC Davis’s own clinical records from 1996 to 2013, evaluating inpatient and outpatient interactive video visits for 19,246 patients. Typically, the patient would still visit their primary care doctor, but they would then together consult a UC Davis specialist via video consultation. The cost savings were measured based on patient travel to a telemedicine center near there home versus traveling to UC Davis Health in Sacramento for specialty care.
Collectively, telemedicine visits saved patients nearly nine years of travel time, five million miles and $3 million in costs. Of course, on a more granular, individual level, those numbers are a little more modest: over 20 years, one person could see a cost savings of four hours of driving time, 278 miles and $156 in direct travel costs.
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UC Davis tracks 18 years of telemedicine and finds benefits beyond the bottom line

Rather than only looking at how the technology reduces costs and improves outcomes, researches focused on related time, transportation and environmental factors. 
March 23, 2017 10:58 AM
Telehealth use is growing but the question of whether the technology reduces costs and improves outcomes remains a point of contention.
Whereas the bulk of such analysis focuses on the bottom line of health plans and employers, researchers at University of California Davis instead are looking on how it impacts patients at a more basic level: transportation costs.
Spanning nearly two decades – and undoubtedly many fluctuations in gas prices and internet connectivity capabilities – the study, which was published in the online journal Value in Health, examines 18 years of UC Davis’s own clinical records from 1996 to 2013, evaluating inpatient and outpatient interactive video visits for 19,246 patients.
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EHRs raise ethical questions for medical profession

Mar 23, 2017 11:48am
Electronic health records have benefits for patients and physicians, but they also raise ethical concerns.
EHRs should facilitate patient care and strong patient-physician relationships, the American College of Physicians (ACP) said in a new position paper (PDF) published in the Journal of General Internal Medicine.
“Electronic health records can aid in the delivery of high quality care to patients. However, health information technology also poses unintended ethical concerns that the medical profession must examine and address,” Nitin S. Damle, M.D., ACP president, said in an announcement.
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HHS names secretary for health technology

The newly-appointed John Fleming said that the Office of the National Coordinator for Health IT may be reorganizing.
March 21, 2017 10:17 AM
HHS deputy assistant secretary for health technology John Fleming. Credit: Gage Skidmore via Flickr.
The U.S. Department of Health and Human Services announced that former Louisiana Rep. John Fleming is taking a new post as deputy assistant secretary for health technology.
Fleming said as secretary for health technology he will work on issues and regulations tied to technology and the practice of medicine. "It's clear there's a lot of work to do, and they're anxious to get somebody in place and start activating this," he told NOLA.com.
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Beyond ACA repeal and replace: Health experts issue a blueprint to make American healthcare great again

Mar 22, 2017 12:36pm
A new report by the National Academy of Medicine provides a roadmap to make healthcare in America great again. Photo credit: Getty/Eugenia Chaikina
While Congress continues to hash out the details of a GOP bill to repeal and replace the Affordable Care Act, leading public health experts say the debate fails to address the actual challenges to American health and healthcare and will have a limited impact on the health of the population.
The National Academy of Medicine (NAM) has released a new discussion paper (PDF) that goes beyond the debates over insurance coverage and creates eight policy directions that are essential to advance American health, healthcare and scientific progress.
The publication is part of NAM’s Vital Directions for Health and Health Care Initiative, which called together more than 150 leading experts 18 months ago to examine ongoing healthcare problems, including high costs, disparities in health and the burden of chronic illness and disability.
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Shulkin sets summer deadline for VistA decision, tempers expectations of switch to commercial EHR

Mar 22, 2017 10:46am
VA Secretary David Shulkin has set a summer deadline for a decision on the fate of VistA, but will the system switch to a commercial EHR?
Department of Veterans Affairs Secretary David Shulkin confirmed that he will make a decision about whether to ditch the VA’s existing EHR for a commercial product by this summer, but didn’t offer any hints as to whether the agency is leaning toward a commercial solution.
At an event hosted by Politico, Shulkin appeared willing to consider either option, adding that he isn’t pinned to a strict deadline to decide whether to stick with VistA, but that he’s “targeting the July time frame.” If the VA elects to pursue a commercial system at that time, senior leadership will begin the task of identifying a vendor.
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IBM launches blockchain tool on Linux Hyperledger Fabric

Big Blue also announced new developer and governance tools for blockchain.
March 20, 2017 01:00 PM
IBM unveiled a cloud-based Blockchain offering on Monday along with governance and developer tools.  
Calling it the first enterprise-ready blockchain service, the company said that the technology makes it possible for developers to build and host production of blockchain networks on the IBM Cloud in a secure environment.
IBM’s new Blockchain offering runs on the Linux Foundation's open source Hyperledger Fabric, which is being developed by members of the Hyperledger consortium alongside other open source blockchain technologies. Hyperledger, which just recently emerged from incubator stage, was developed to provide a framework for building enterprise-grade blockchain networks that can scale as new network members join.
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Report: 60 Percent of Healthcare Data Breaches in February Came From Within the Organizations

March 20, 2017
by Heather Landi
In February, hacking incidents only accounted for 12 percent of total healthcare data breach incidents, yet insiders were responsible for almost 60 percent of the total breach incidents during the month, which points to a troubling trend, according to the latest Protenus “Breach Barometer” report.
The Protenus Breach Barometer is a monthly snapshot of reported or disclosed breaches impacting the healthcare industry, with data compiled and provided by DataBreaches.net. This month’s analysis showed 31 breach incidents either reported to the U.S. Department of Health and Human Service or first disclosed in media or other sources, which is the same number of incidents as reported in January.
While the number of incidents remained the same, February experienced a 47 percent drop in the number of affected patient records (206,151 vs. 388,207), according to Protenus. The largest single incident involved 100,000 patient records, and was the result of insider-error.
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Insider threat health data breaches doubled in February, Protenus says

The good news? Hacking was down and only comprised 12 percent of reported incidents during the last month.
March 20, 2017 04:45 PM
The number of healthcare security breaches caused by insiders doubled from January to February, according to the latest Protenus Breach Barometer.
While both January and February had the same number of total breaches — 31 apiece, February saw a 47 percent drop in affected patient records. There were 206,151 in February as opposed to the 388,307 reported in January. Officials said the largest single breach involved 100,000 patient records, which stemmed from insider-error.
Protenus, working with Databreaches.net, calculated its totals from Health and Human Services data, media and other source reports. Details were available for 26 incidents. 
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WEDI Calls for Health IT System Cybersecurity Improvements

In a recent white paper, WEDI addresses ways the healthcare industry can protect against cyberattacks on health IT infrastructure as the industry increases its reliance on digital health data.

March 20, 2017 - WEDI is calling for increased cybersecurity investments by healthcare organizations to protect health IT infrastructure from the growing interest of cybercriminals.
WEDI, a nonprofit organization focusing on using health IT for health data exchange working with the Department of Health and Human Services (HHS), recently drafted a white paper to inform healthcare insiders of the best ways to avoid security issues at the hands of hackers.  
 “As the use of health IT becomes more widespread, cybersecurity must be more directly integrated into the fabric of healthcare and ultimately become an organizational asset that is perceived as commonplace and mission-critical as hygiene and patient safety procedures have become to quality care,” the authors stated.
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Why blockchain offers a fresh approach to interoperability

Published March 21 2017, 5:06pm EDT
It’s no exaggeration to say that our EHR systems’ lack of interoperability is the single strongest barrier to nationwide population health management. That’s exactly what ONC reported to Congress in December 2015. A year later in its December 2016 report ONC acknowledged a few efforts in the right direction, but could point to no definitive progress.
With the new bipartisan Cures Act, HHS aims to exercise more muscle with reluctant EHR vendors by requiring them to meet interoperability standards by the end of 2017. But President Trump’s new “one-in, two-out” rule that requires federal agencies to kill two regulations for every new one has essentially put interoperability progress through the Act on hold because so much rule-making is needed to implement it.
But healthcare isn’t “on hold,” and new technologies are being nurtured in the trenches to meet the challenge.
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Digital Transformation Nascent Among Providers, Payers

Alexandra Wilson Pecci, March 21, 2017

Only 10% of payers and providers say they are actively executing digital transformation, but the number is expected to grow as the maturity curve accelerates.

"Digital transformation" is a term that's used loosely in healthcare. It doesn't mean what the same thing to everyone.
When Jeff Rivkin, research director at IDC Health Insights, talks with industry leaders about "digital transformation," he often hears about efforts associated with an organization's EHR/EMR system.
"Was that really a disruption?" he asks. "Or did you just automate the chart?"
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Health data breaches vs. security incidents: a primer

The uptick in ransomware is giving rise to a new question of whether hackers actually breach the data they encrypt or not and, in turn, how victimized organizations should respond.
March 20, 2017 08:48 AM
Under the HIPAA Notification Rule, all HIPAA-covered entities and business associates are required to provide notification after a breach of unsecured protected health information. The Federal Trade Commission has similar breach provisions that apply to vendors of personal health records and third-party service providers.
So what’s the difference between a breach and a security incident?
OCR describes a breach as “impermissible use or disclosure that compromises the security or privacy of protected health information.” But providers must presume that impermissible use or disclosure was a breach unless it can prove undeniably there’s a low probability PHI was compromised.
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FHIR holds big promise for interoperability, but will need to coexist with other standards for the foreseeable future

Russell Leftwich, MD, senior clinical advisor of interoperability at InterSystems and member of the HL7 board of directors, says IT professionals need to have a strategy for integrating the spec with existing standards into a hybrid model.
March 17, 2017 07:36 AM
Once again this year, HL7's FHIR specification was a hot topic at HIMSS17, a burning issue discussed ardently across the show floor. (Our apologies, but heat- and flame-related puns seem to be required when writing about FHIR. Thankfully, we've gotten them out of the way early.)
But while many vendors were touting their embrace of the interoperability spec, and while the promise it holds for enabling faster and easier exchange of data is very real, the open API isn't going to supplant existing HL7 standards such as Version 2 and CDA any time soon. That means the industry will be taking a hybrid approach to interoperability standards for the foreseeable future.
We recently spoke with HL7 board member Russell Leftwich, MD, senior clinical advisor of interoperability at InterSystems and co-chair of both HL7's Learning Health Systems Workgroup and its Clinical Interoperability Council, for his perspective on FHIRs place in healthcare now and prospects for the future.
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Providers embrace Apple's push into healthcare

Mar 20, 2017 11:57am
Apple is making a bigger push into the healthcare industry as providers look to improve access to patient health information.
More healthcare providers are turning to Apple products to help patients access medical records and improve engagement, a shift that is likely to grow given the company’s expanding interest in the healthcare industry. 
Health systems like Cedars-Sinai Health System in Los Angeles, Parkview Medical in Colorado and Ochsner Medical Center in New Orleans are integrating iPads and Apple Watches into their system, according to Fast Company. The devices give patients new insight into their care by allowing them to easily access and transport their medical records and provide doctors with streamlined alerts.
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Exam tip: Ask patients to type their concerns into EHR before doctor visit

Mar 20, 2017 12:35pm
In a new study, patients typed their concerns directly into the EHR before meeting with their doctor. Patients and clinicians found the process improved communication.
Doctors sometimes encourage patients to write down their concerns prior to an office visit. But what if patients could type the reasons for their visit right into the electronic health record (EHR), giving their doctor a heads up before getting into the exam room? 
That was what 101 patients did in a small study conducted at Harborview Medical Center, a large primary care safety-net county clinic in Seattle. Patients typed directly into a laptop computer linked to the EHR, with comments such as “my ankle is not getting better” and “[concerned about] lumps on my lung.” Clinicians then looked over those agendas in the electronic progress notes before entering the exam room or at the start of the visit.
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3 ways to improve the return on IT investments

Published March 20 2017, 3:31pm EDT
This past February, the President announced that the delivery of healthcare to America’s 300 million residents embraced more complexity than he previously realized. Only a few days before, at the annual HIMSS conference in Orlando, former Speaker of the House John Boehner cast doubt on the ability of the President and Congress to repeal the Affordable Care Act (ACA) because of the disruption such a repeal would bring to the healthcare delivery system.
The ACA evolved from tough negotiations among all healthcare stakeholders, including physicians, provider organizations, life science companies, payers and technology vendors. Such negotiations led to rules and incentives, both intelligent and imperfect. In turn, the stakeholders adjusted their business models to optimize their revenue while working under the provisions of the ACA.
Since its implementation, the ACA facilitated the healthcare coverage of more than 20 million Americans who previously had none. Although the ACA legislation greatly improved access to services, healthcare costs continue to rise at unsustainable rates. In addition, the HITECH Act, the ACA’s “sister” legislation that was enacted to speed the adoption of healthcare information technology, has not delivered the quality improvements and cost savings it was initially expected to bring about.
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Ultrasound machines used for more than looking at babies

Christy Millweard, KVUE 6:11 PM. CDT March 16, 2017
For a short time only, Williamson County EMS has ultrasound machines on a few of their ambulances.
The paramedics are participating in a study that looks at the use of ultrasound machines on patients before they get to the hospital.
"You can see the black circle in the middle of the screen, that is an artery in Dan’s arm,” said John Hamilton, the Senior Medical Officer for Williamson County EMS, as he shows KVUE how the machine works.
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IT Security Workers Expect IoT Cybersecurity Attack Increase

A recent survey found that 96 percent of IT security professionals plan to see an increase in cybersecurity attacks on Internet of Things this year.

March 17, 2017 - As more industries, including healthcare, continue to implement connected devices in critical infrastructure segments, there will likely be an increase in Industrial Internet of Things (IIoT) cybersecurity attacks, according to a recent Tripwire survey.
The majority of surveyed IT security professionals – 96 percent – reported that they expect to see an increase in IIoT security attacks in 2017. However, 51 percent admitted that they “do not feel prepared for security attacks that abuse, exploit, or maliciously leverage insecure IIoT devices.”
“Industry professionals know that the Industrial Internet of Things security is a problem today. More than half of the respondents said they don’t feel prepared to detect and stop cyber attacks against IIoT,” Tripwire Chief Technology Officer David Meltzer said in a statement. “There are only two ways this scenario plays out: Either we change our level of preparation or we experience the realization of these risks. The reality is that cyber attacks in the industrial space can have significant consequences in terms of safety and the availability of critical operations.”
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Enjoy!
David.

Blog Silence

Readers,

Sadly I am in hospital so there will not be newer posts till further notice.

Comments won't be moderated for now. (Update Sun 2/4 - will now be seen once a day at least)

CU when a bit better!

David.

Friday, March 31, 2017

This Is Really Important News For Those Hoping To Improve Information Access And Interoperability.

This appeared last week.

HL7 publishes Release 3 of FHIR Standard for Trial Use

Published March 23 2017, 7:15am EDT
Health Level 7 International has published Release 3 of its Fast Healthcare Interoperability Resources Standard for Trial Use (STU), moving it closer to a normative version of FHIR.
According to HL7, FHIR STU 3 is the “culmination of 18 months of extensive work to incorporate changes and enhancement requests received from implementation partners across the world” including the Argonaut Project, an industry-wide effort to accelerate the development and adoption of the emerging standards framework.
 “Release 3 represents a significant milestone for HL7 FHIR, demonstrating the continued evolution of the FHIR platform and a promise for interoperability, which it represents,” says HL7’s CEO Chuck Jaffe, MD. “It is a tribute to the hundreds of individuals worldwide who have contributed to the standard’s development and thousands to its implementation.”
Among the enhancements to FHIR STU 3 are support for clinical decision support and clinical quality measures, broadened functionality to cover key clinical workflows, as well as further development of terminology services and support for financial management.
“This is a significant milestone, requiring thousands of person hours of volunteer time. People should begin using the new version of the standard as soon as possible,” says Stan Huff, MD, chief medical informatics officer at Intermountain Healthcare.
“At the Argonaut Project, we are especially excited about this release because it will allow us to publish our Argonaut Project Provider Directory Implementation Guide, which is based on resources contained in FHIR Release 3, and will assist any organization seeking to implement a provider directory based on modern standards,” adds Micky Tripathi, project manager of the Argonaut Project.
Lots more here:
This is really good news as we gradually make health information more accessible and shareable.
Well done to the team!
David.

Thursday, March 30, 2017

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

March 30, 2017 Edition.
The big news in the US this week was the defeat of the Republicans on their US Health Care Plans which were defeated because of internal in-fighting. It was the first major political defeat for the new administration.
In Australia the major news has been some success on some of their budget measures – and no seem to be heading to  a budget session after only 4-5 more weeks. It will be very interesting to see how the present financial instability is addressed.
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Here are a few other things I have noticed.
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National Budget Issues.

Land tax: Parliamentary Budget Office costs plan to kill off stamp duty

Eryk Bagshaw
Published: March 19, 2017 - 3:14PM
The Parliamentary Budget Office has costed a proposal that would kill stamp duty and replace it with land tax, saving home buyers up to $40,000 in Sydney and $55,000 in Melbourne, while delivering billions of dollars to fund schools and hospitals.
The costing will put land tax back up for debate when Parliament returns next week as the government looks to mark its authority on the housing affordability crisis less than two months out from the federal budget.
Both the NSW and Victorian governments have thrown their weight behind broader stamp duty tax reform and Treasurer Scott Morrison has indicated his support for a transition to taxing land.
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After the boom, pay packets are ona flatline for all

  • The Australian
  • 12:00AM March 18, 2017

Adam Creighton

One Nation may have flopped in Western Australia’s election but our wage growth, the third weakest in the developed world, is fuelling simmering political discon­tent about everything from house prices to inequality and energy prices. This will have profound political consequences.
The living conditions of Australians are rising at the slowest pace in more than a generation. Wage growth fell off a cliff in 2012 as the resources boom petered out, and it hasn’t recovered. The torrent of foreign cash washing over the economy has receded, leaving a high-wage, heavily regulated economy struggling to compete.
Whether voters maintain the rage will depend on whether the slump is a hiatus between bursts of innovation or a reversion to the mean. It wasn’t until Australia was being settled in the late 18th century that wages, adjusted for cost of living, showed any sign of improvement anywhere.
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Underemployment skyrockets to 1.1 million Australians

Anna Patty Workplace Editor
Published: March 20, 2017 - 12:00AM
Kate Zizys, 46, has been underemployed her entire working life.
Earning less than $20,000 a year from casual work, she is one of 1.1 million Australians who want more hours of work than they are getting.
New figures from the Australian Bureau of Statistics show the official unemployment rate has increased from 5.7 to 5.9 per cent.
"I'm tertiary educated and have been in a casualised system my entire working life," Ms Zizys said.
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Someone has to give if we're to fix the budget

Ross Gittins
Published: March 19, 2017 - 10:18PM
The nation's budget problem still won't be solved when, one day in the distant future, we get the federal budget back into surplus. Only a change in strategy is likely to produce a sustained solution.
As successive intergenerational reports demonstrate, on present policies government spending will just grow and grow, requiring ever-higher taxes.
If we don't like that idea – or politicians regard it as an impossible sell – we need to think a lot harder about what we're spending on, why it's growing so fast, what things we should stop spending on, and how we can make our spending more effective, in the process slowing the rate at which it's growing.
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Treasurer to launch fresh attack on multinational tax avoidance as Parliament resumes

Eryk Bagshaw
Published: March 20, 2017 - 12:15AM
Treasurer Scott Morrison will launch a fresh attack on tax avoidance this week in Parliament in a bid to get the so-called "Google Tax" pushed through and shift public attention towards the Coalition's record on multinational tax crackdowns. 
The Diverted Profits Tax is due to be debated this week, almost a year after it was first introduced in the 2016 budget and less than two months before Mr Morrison hands down his second in May. 
Mr Morrison told Fairfax Media the Diverted Profits Tax would close major loopholes in the system.
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Energy crisis: The 9 questions you were too embarrassed to ask

Jessica Irvine
Published: March 20, 2017 - 12:00AM
When crisis strikes, the natural human response is to shut one's eyes, cover one's ears and wait for it to pass.
But sorry folks, this one's not going away. The energy crisis – with all its mind-boggling complexity, jargon and science-y stuff – is something you'll need to understand. Let's get straight into it.
1. Is there really an energy "crisis"?
Yes, in the dictionary sense of reaching a "decisive moment" or "a time of danger or great difficulty". No, in the sense of widespread disease and destruction. Not yet.
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Paul Keating: Only a reckless government would raid super for housing

Paul Keating
Published: March 20, 2017 - 8:48AM
Countries get one chance in history of putting into place a savings retirement scheme on the scale of the Australian superannuation system.
The right conditions had to be there: a government which saw the need, a policy-induced surge of productivity to pay for it and an organised workforce prepared to defer some current consumption to provide better living in retirement.
The system is the envy of the developed economies.
Only the most reckless and wilful government would abort the policy settings to put the system at risk.
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Scott Morrison's Monty Python moment

Michael Pascoe
Published: March 20, 2017 - 10:59AM
It's a dangerous thing to talk a big game before taking the field. Treasurer Scott Morrison did that pre-departure for the weekend G20 finance ministers meeting in Germany. He's been left trying to claim a big loss was actually a win. Monty Python's dismembered Black Knight comes to mind.
Last week Morrison told Fairfax Media he would take no part in any weakening of the G20's pro-trade stance – but that's just what happened. The G20 was right royally Trumped, its public free-trade commitment blown out of the water.
The mealy-mouthed platitudes of the final communique mean nothing. That's why the US was prepared to go along with it. Instead of the previous pledge to resist protectionism, members only say they'll be "working to strengthen the contribution of trade to our economies" – which could mean anything at all – and that they would "strive to reduce excessive global imbalances, promote greater inclusiveness and fairness and reduce inequality in our pursuit of economic growth".
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  • Mar 20 2017 at 10:23 AM

Scott Morrison greenlights fresh crackdown on property investor loans

Treasurer Scott Morrison has signalled that renewed surge in investor property buying - particularly with interest only loans - is likely to trigger a fresh regulatory crackdown on banks as part of the government's efforts to boost affordability for actual home buyers.
With the May budget due to unveil a series of measures that would "reduce the burden" on those looking to buy or rent a house, Mr Morrison indicated that so-called macroprudential restraints on lenders introduced in 2015 were no longer working as effectively as they were in 2016.
"There remain pressures that have built up again over the last few months," Mr Morrison said in Canberra on Monday.
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Housing market is in an environment of 'heightened risk', but it's not 'the B-word'

Sarah Danckert
Published: March 20, 2017 - 4:07PM
Australia's banking regulator says the country's housing market is in an environment of "heightened risk", but he won't say there's a housing bubble.
Australian Prudential Regulatory Authority chairman Wayne Byres told a Sydney conference that he wouldn't use "the B-word" to describe the housing market.
"I don't use the B-word. I refuse to use the B-word. It implies a binary, that's too simplistic," Mr Byres said speaking at the Australian Securities and Investments Commission annual forum.
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  • Updated Mar 20 2017 at 6:34 PM

Bank regulators backed by Morrison to unleash new crackdown on lenders

Regulators are preparing to impose a fresh wave of constraints on the banks to slow investor lending growth, crack down on interest-only loans, and force buyers to stump up more equity on purchases as they scramble to manage a rampant property boom.
Warning that financial and economic risks have grown in recent months, particularly across east coast property markets, the nation's top financial regulators and Treasurer Scott Morrison unleashed co-ordinated calls for fresh restraint from banks.
"Watch this space," declared Australian Prudential Regulation Authority chairman Wayne Byres on Monday, speaking just hours after Mr Morrison urged APRA and the Australian Securities and Investments commission to use "the levers that they have".
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Treasurer Scott Morrison says there’s no proposal to allow super raid to buy homes

Treasurer Scott Morrison insists the federal government has no proposal to allow first-home buyers to tap their superannuation for a deposit.
Former Labor prime minister Paul Keating has slammed the idea of allowing young people to raid their superannuation, warning it would “pull the backside” out of the system.
Liberal MP John Alexander, who chaired a parliamentary committee into housing affordability, let slip the government was considering the proposal before the May budget.
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We will lose jobs in the future, but it's not all doom and gloom

Ross Gittins
Published: March 21, 2017 - 10:38PM
I can't remember when there's been so much speculation about what the future holds for working life. Or when those who imagine they know what the future holds have worked so hard to scare the dickens out of our kids.
Getting on for 100 years ago – 1930, to be precise – the father of macro-economics, John Maynard Keynes, wrote an essay, Economic Possibilities for our Grandchildren, in which he calculated that if technological progress produced real economic growth per person averaging 2 per cent a year for 100 years, by then people would enjoy a comfortable standard of living while needing to work only 15 hours a week.
He was writing during the Great Depression, so I doubt if many people believed him. He was right, however, to predict the Depression would end and growth would resume, powered by continuing advances in technology.
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Australians not so happy about economy

- on March 21, 2017, 5:56 pm
Australia is one of the happiest nations in the world, but ask people what they think about the economy and their smiles will quickly turn to a grimace.
A United Nations report has found Australia to be the joint-ninth happiest country on Earth with New Zealand.
However, new figures show confidence in the Australian economy has dropped to its lowest level in almost a year, weighed down by rising unemployment and the continued weak pace of wages growth.
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  • Updated Mar 22 2017 at 7:53 PM

Childcare deal leaves $4b in budget cuts in limbo

The federal government has secured Senate support for its childcare reforms in a deal that has left the fate of a net $4 billion in budget savings in limbo, and at risk of being dumped altogether.
The long-stalled childcare package rolls the existing childcare rebate and childcare supplement into a single means-tested payment that will significantly benefit families on lower incomes by skewing the benefits towards them.
Families on combined incomes over $350,000 may miss out altogether due to demands made by crossbencher senators David Leyonhjelm and Derryn Hinch that in return for their support, these people receive nothing.
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Politics ensures Reserve Bank's housing pushback already failing

Michael Pascoe
Published: March 23, 2017 - 12:15AM
The bad news about the regulators' new attempts to hose down housing investment enthusiasm is that they are, at best, second rate. The Law of Unintended Consequences is always at work, ensuring damage elsewhere in the economy, while the most effective tools for the present circumstances remain locked in Treasury's cupboard.
The first punch of this new round of whack-an-investor is NAB and Westpac increasing investors' rates by more than owner-occupiers'. The impact? NAB's 25 point rise will cost investors a little more to service existing loans, so they'll be spending a little less elsewhere in the economy. And it shaves investors' borrowing power for new purchases, so they are more likely to go after cheaper properties – which is where first home buyers tend to concentrate.
Does it do anything to increase housing supply? No. Does it reduce demand? A little bit but it's marginal and not where you'd like it to. And, like the 2015 macro-prudential squeeze, the impact tends to wear off. Thanks to negative gearing the taxpayer will pick up half the tab for investors in the top tax bracket anyway.
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How Turnbull can kill stamp duty and produce a budget to remember

Peter Martin
Published: March 22, 2017 - 11:45PM
The myth about budgets is that they can achieve much at all.
In decades to come few will be remembered for anything other than the introduction of Medicare, the national disability insurance scheme and the goods and services tax.
But in six weeks' time the government will have an opportunity to actually do something that will last; something far more important, and more transformative, than the apparently doomed plan to cut the rate of company tax.
It's an idea from the Greens, but that's a plus. It gives it a good chance of getting through the Senate.
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  • Mar 23 2017 at 10:03 AM

Reserve Bank trapped by housing, says PIMCO

PIMCO's Australian head Rob Mead says indebted Australian households have caught the Reserve Bank in a trap. 
While the US Federal Reserve may have put its foot firmly on the brake if it needs to slow its economy a slight tap by the RBA may prove too jarring. 
The reason the central bank is trapped, he says, is because Australians have taken on more debt at low interest rates, making households "highly sensitive to even small upward changes in the cash rate."
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WA GST return hits 34 cents, blows hole in budget, leaves Treasurer Ben Wyatt 'horrified and furious'

March 24, 2017
The new West Australian Government has been handed a major budget blow, with the state set to be hundreds of millions of dollars worse off due to a lower than expected GST allocation.
Treasurer Ben Wyatt admitted it would be virtually impossible to meet Labor's pre-election commitment of bringing the state budget back to surplus by 2019-20, following the revised figures from the Commonwealth Grants Commission.
WA had been expecting to get 38 cents out of every GST dollar raised in the state in 2017-18, but that has now been revised down to 34 cents.
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Treasurer Scott Morrison pushes crackdown on investor loans

Eryk Bagshaw and James Massola
25 Mar 2017, 6:14 a.m.
Treasurer Scott Morrison has urged financial regulators to crack down harder on loans to real estate investors amid revelations that foreign buyers are spending $8 billion per year on new homes in NSW and Victoria, locking out owner-occupiers.
The call came as the Treasurer and his state counterparts met on Friday to find solutions to problems of housing affordability exacerbated by a return to the market of investors after earlier attempts to contain them had "worn off".
"I have been concerned, over the last couple of months, that the measures that were put in place a few years [ago] have worn off and it is now for the council of financial regulators to determine what the next step is," Mr Morrison said on Friday.
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  • Updated Mar 24 2017 at 11:00 PM

Malcolm Turnbull vows no surrender on company tax plan

The federal government will not give up trying to implement its full package of company tax cuts after the Senate votes next week to allow only the first phase of the 10-year plan – a tax cut for small business.
Ending a week of uncertainty during which the government has declined repeatedly to say what it would do after next week's Senate vote, Mr Turnbull said companies would start leaving Australia if the nation allowed its company tax rate to become increasingly uncompetitive against global rivals.
It is understood Mr Turnbull has reaffirmed to colleagues that the government has no intention of walking away from the tax plan which was the centrepiece of its economic strategy going into the last election. 
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Don't buy into the 'money illusion': Here's what's happening to real wages

Ross Gittins
Published: March 25, 2017 - 12:15AM
Economists may not be much chop at forecasting how fast the economy will grow in the next year or two, but that doesn't mean they haven't learnt a few things about how economies work that the rest of us could benefit from knowing.
It helps us get a better handle on the future if we remember the macro-economists' rule that economies move in cycles, not straight lines.
So something that's been going down will, one of these days, start going back up, and vice versa.
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Turnbull government shifts focus to school funding after childcare reforms pass Parliament

Matthew Knott
Published: March 24, 2017 - 3:04PM
The Turnbull government is aiming to use the successful passage of its childcare reforms, which redistribute subsidies from wealthy to low-income families, as a springboard to overhaul the way schools are funded. 
The government is examining trimming funding to "over-funded" private schools and redistributing money to needy public and non-government schools as part of the new funding model.
Education Minister Simon Birmingham will shift his attention to schools after the Senate passed the government's $1.6 billion childcare package on Thursday night. 
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Health Budget Issues.

Medicare rebate freeze may go in May budget

  • The Australian
  • 2:40PM March 19, 2017

Rachel Baxendale

Health Minister Greg Hunt has given strong indications the Turnbull government will unfreeze the Medicare rebate as part of the May budget.
In the wake of Labor’s damaging “Mediscare” campaign in the lead-up to last year’s federal election, Mr Hunt reiterated the government’s “rock solid” commitment to strengthening the scheme.
Mr Hunt said there were four pillars to the government’s national health plan, namely Medicare, hospitals, mental health, and medical research.
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Home doctor services save taxpayers millions. It's foolhardy to scrap them

Chris Hazzard
Published: March 22, 2017 - 5:27PM
I'm a home doctor. This year it will have been 50 years since I graduated so I actually predate Medicare and its predecessor Medibank. I remember the days when if a patient did not have the money to pay for a consultation, they had to either rely on the charity of their general practitioner or the honorary system in the public hospitals.
We don't want to get back to that. Our health care system is something we take pride in and cuts to the existing service will have a great social impact on millions of families. 
When thinking about the important decisions the federal government has made over the years, the decision to introduce Medibank (now Medicare) is considered by 63 per cent of Australians as a positive decision, with 79 per cent seeing home visits as an important part of the Medicare system. With budget talks now well under way, we find ourselves at the cusp of policy changes that could have serious repercussions on how home visits are accessed, impacting up to two million Australian families.
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Mental health taskforce announced in major review of services

  • The Australian
  • 10:43AM March 23, 2017

Rosie Lewis

The government will announce a new mental health taskforce to undertake a major review of its primary health networks across the country, in a bid to better target services for all Australians.
Health Minister Greg Hunt will today establish the mental health advisory group, to be co-chaired by Mental Health Australia CEO Frank Quinlan and National Mental Health Commission CEO Peggy Brown, as 50 organisations from the sector descend on Parliament House to advocate for policy changes.
Called the Primary Health Network Advisory Panel on Mental Health, it will for the first time look at how the government’s 31 PHNs are commissioning and planning mental health services, more than two years after they were rolled out and replaced Labor’s Medicare Local system.
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Federal Government announce 1100 medicines to have prices cut including Rosuvastatin

Lanai Scarr, Senior Writer, News Corp Australia Network
March 25, 2017 12:00am
Subscriber only
EXCLUSIVE
SICK Australians will save $500 million over four years and up to $200 a year each on the cost of medicines in an announcement by Health Minister Greg Hunt today.
Drugs to treat diseases and illnesses like breast cancer, mental health, eczema, psoriasis and Parkinson’s disease will have prices slashed in a bid to ease cost of living pressures for millions of Australians.
More than 1100 medicines will have their prices cut from April 1.
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Health Insurance Issues.

Two million to quit or downgrade private health insurance cover research suggests

Sue Dunlevy, National Health Reporter, News Corp Australia Network
March 21, 2017 12:00am
EXCLUSIVE
TWO million Australians plan to dump or downgrade their health cover ahead of premium rises three times the inflation rate that take effect next month.
It will accelerate the dangerous health fund membership spiral which started last year that threatens the long term viability of the health insurance industry.
And it puts the government under even more pressure to reform the industry in the budget to put a brake on a decade of premium rises many times the inflation rate.
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New report reveals which health funds have won and lost customers

Esther Han
Published: March 24, 2017 - 6:30PM
Medibank has topped the list of health funds that have shed the greatest number of members, according to a new report.
The Private Health Insurance Ombudsman's latest State of the Health Funds Report shows that Medibank lost 45,676 customers between June 2015 and June 2016, followed by Westfund, which lost 865, and HCF, which said goodbye to 502.
The biggest winners from the exodus were HBF, which welcomed 49,949 new policyholders, Bupa, which won over 38,235, and NIB, which added 19,501.
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Superannuation Issues.

Your guide to super changes as July 1 looms

  • Will Hamilton
  • The Australian
  • 12:00AM March 21, 2017
With June 30 fast approaching there is now limited preparation time for the new superannuation regime which comes into effect on July 1 this year.
This timeframe now makes looking at the impact of the changes on your current superannuation entitlements urgent. Though there has been wide coverage and much discussion of the changes I am still amazed at how little they are yet understood. It makes a lot of sense to try and offer a ‘‘wrap’’ on the subject, so here goes:
The most significant change is the introduction of a lifetime balance capped at $1.6 million. You cannot ‘‘top up’’ this amount once you cross $1.6m.
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  • Updated Mar 23 2017 at 6:37 AM

Older mortgagees and the super squeeze

A new front is opening up in the housing affordability crisis, with unprecedented numbers of Australians set to drain their superannuation not for living expenses in retirement, but to pay off a mortgage.
Leading economist Saul Eslake will on Thursday warn that collapsing home ownership rates are causing major problems at both ends of the adult life cycle.
The former ANZ chief economist will present research at an event called the Conference of Major Super Funds highlighting the extra age pension costs likely to be associated with a wave of Australians currently aged in their 50s and 60s who will hit retirement and still have housing debt.
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Super staring at a ticking housing time bomb — the mortgaged retiree

  • The Australian
  • 12:00AM March 25, 2017

James Kirby

Most of the angst in relation to housing costs relates to first-home buyers — few, it seems, have looked at the other end of the spectrum … how will it hit retirees?
It’s time to pay attention to this issue because it’s going to have major consequences for investors depending on residential property and pension access … in other words, just about everyone.
Two very important pieces of research released in the past few days pinpoint the issue: economist Saul Eslake has shown that the number of homeowners heading into retirement that still have a mortgage has tripled since 1996 to 45 per cent. Meanwhile, Recep Peker, head of research at Investment Trends, reports the portion of Australians who believe their savings will not carry them through retirement is now the ­majority.
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I look forward to comments on all this!
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David.