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Medco CEO: Health IT Provides the Foundation for 'Real' Health Care Reform
Date:3/18/2009

Improving Care, Creating a $680 Billion Annual Savings Opportunity

WASHINGTON, March 18 /PRNewswire-FirstCall/ -- Real health care reform would be difficult, if not impossible, without the transparency that a wired system can deliver, Medco Health Solutions, Inc. (NYSE: MHS) Chairman and CEO David B. Snow Jr. said today in a keynote address at the American Enterprise Institute.

"A wired system will create accountability, where every provider and service across the spectrum of health care can be measured based on their contribution in lowering costs and improving clinical quality," Snow said. "Wiring America's health care system is the key foundational step that will enable as much as $680 billion in annual savings."

Health IT investments will provide comprehensive information that practitioners in the public and private sectors need in solving the challenge of more effectively treating patients with chronic and complex illness, with the potential to reduce health care spending by as much as $350 billion. Meanwhile, transparency with accountability could yield an additional $330 billion in savings by creating the opportunity to engage in a rational conversation in three additional areas: reducing the need to practice defensive medicine, resolving a stalemate related to tort reform and addressing the difficult issues around providing appropriate care in the last years of life.

"This is a critical platform to drive meaningful health care reform that stimulates continuous innovation and delivers sustainable savings," Snow said. "Wiring health care empowers the fundamental capability to measure, examine, evaluate and improve each element and every process in real-time. This, in turn, provides a level of insight and accountability that will improve the quality of service, and ensure payors and pat
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SOURCE Medco Health Solutions, Inc.
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