[Senate Hearing 111-603] [From the U.S. Government Publishing Office] S. Hrg. 111-603 HEARING ON AGING IN PLACE: THE NATIONAL BROADBAND PLAN AND BRINGING HEALTHCARE TECHNOLOGY HOME ======================================================================= HEARING before the SPECIAL COMMITTEE ON AGING UNITED STATES SENATE ONE HUNDRED ELEVENTH CONGRESS SECOND SESSION __________ WASHINGTON, DC __________ APRIL 22, 2010 __________ Serial No. 111-17 Printed for the use of the Special Committee on Aging Available via the World Wide Web: http://www.gpoaccess.gov/congress/ index.html ---------- U.S. GOVERNMENT PRINTING OFFICE 57-982 PDF WASHINGTON : 2010 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 SPECIAL COMMITTEE ON AGING HERB KOHL, Wisconsin, Chairman RON WYDEN, Oregon BOB CORKER, Tennessee BLANCHE L. LINCOLN, Arkansas RICHARD SHELBY, Alabama EVAN BAYH, Indiana SUSAN COLLINS, Maine BILL NELSON, Florida GEORGE LeMIEUX, FLORIDA ROBERT P. CASEY, Jr., Pennsylvania ORRIN HATCH, Utah CLAIRE McCASKILL, Missouri SAM BROWNBACK, Kansas SHELDON WHITEHOUSE, Rhode Island LINDSEY GRAHAM, South Carolina MARK UDALL, Colorado SAXBY CHAMBLISS, Georgia KIRSTEN GILLIBRAND, New York MICHAEL BENNET, Colorado ARLEN SPECTER, Pennsylvania AL FRANKEN, Minnesota Debra Whitman, Majority Staff Director Michael Bassett, Ranking Member Staff Director (ii) C O N T E N T S ---------- Page Opening Statement of Senator Herb Kohl........................... 1 Opening Statement of Senator Bob Corker.......................... 2 Opening Statement of Senator Ron Wyden........................... 3 Opening Statement of Senator Susan Collins....................... 5 Panel I Statement of Mohit Kaushal, Digital Healthcare Director, Federal Communications Commission, Washington, DC...................... 7 Statement of Farzad Mostashari, Senior Advisor to the National, Coordinator for Health Information Technology, U.S. Department of Health and Human Services, Washington, DC................... 17 Panel II Statement of Eric Dishman, Intel Fellow, Intel Corporation, Global Director of Health Innovation and Policy Digital Health Group, Senior Policy Advisor, Continua Health Alliance, Senior Fellow, Center for Aging Services Technologies, Washington, DC. 40 Statement of Robin Felder, Professor of Pathology, Associate Director, Clinical Chemistry, The University of Virginia School of Medicine, Charlottesville, VA............................... 61 Statement of Richard Kuebler, Telehealth Department Head, University of Tennessee Health Science Center, Memphis, TN..... 68 APPENDIX Mr. Dishman's Responses to Senator Kohl's Questions.............. 81 Dr. Felder Response to Senator Kohl's Question................... 83 Statement from Americans Telemedicine Association................ 84 Comments Submitted by Mark Reisinger, Geisinger Health System.... 87 (iii) HEARING ON AGING IN PLACE: THE NATIONAL BROADBAND PLAN AND BRINGING HEALTHCARE TECHNOLOGY HOME ---------- -- THURSDAY, APRIL 22, 2010 U.S. Senate, Special Committee on Aging, Washington, DC. The Committee met, pursuant to notice, at 2:03 p.m. in room SD-562, Dirksen Senate Office Building, Hon. Herb Kohl (chairman of the committee) presiding. Present: Senators Kohl, Wyden, Corker, and Collins. OPENING STATEMENT OF SENATOR HERB KOHL, CHAIRMAN The Chairman. Good afternoon. We thank you all for being here. We'd like to thank today's witnesses for joining us, whether in person or thanks to the wonders of technology. We are fortunate to have Senator Ron Wyden chair today's hearing on the National Broadband Plan and the impact it may have on telehealth for seniors. Senator Wyden has always been a very active member and an outstanding member of the Aging Committee. He brings to the table his experience working with the Gray Panthers, in his home State of Oregon. He's known for his passion and leadership on the issue of healthcare. We are very pleased to have him chair this hearing today. As we will hear, communications and medical technology has the ability to keep more seniors healthier, at a lower cost, particularly those who live in remote rural areas. There are a number of health systems and organizations in my State of Wisconsin that are putting telehealth technologies to work, such as ThedaCare, Wheaton Franciscan Healthcare, Marshfield Clinic, as well as Aurora Visiting Nurse Association. Thanks to funding made available in last year's stimulus bill, the Federal Government is making efforts to expand our national broadband network so that more doctors and patients can take advantage of these technologies. Through the Judiciary Committee, we are working to ensure that this is done in a way that fosters competition amongst broadband providers. Unfortunately, despite the spread of broadband, several stumbling blocks stand in the way of widespread adoption of telehealth technologies in the home. Senator Wyden and the witnesses he has invited today will shed light on this timely issue, and hopefully suggest some potential solutions. I'm sorry that I'll not be able to stay very long at this hearing, as I have other obligations and prior commitments. But, I have full confidence in Senator Wyden, and I thank him very much for his contributions to this committee. We turn, at this moment to the committee's ranking member, Senator Bob Corker. [The prepared statement of Senator Herb Kohl follows:] Prepared Statement of Senator Herb Kohl Good afternoon. First, I'd like to thank all of today's witnesses for joining us, whether in person or thanks to the wonders of technology. We are fortunate to have Senator Ron Wyden chair today's hearing on the national broadband plan and the impact it may have on telehealth for seniors. Senator Wyden has always been a very active member of the Aging Committee, bringing to the table his experience working with the Gray Panthers in his home state of Oregon. He is known for his passion and leadership on the issue of health care, and we are so pleased to have him hold today's hearing. As we will hear today, communications and medical technology has the ability to keep more seniors healthier at a lower cost, particularly those who live in remote rural areas. There are a number of health systems and organizations in Wisconsin that are putting telehealth technologies to work, such as ThedaCare, Wheaton Franciscan Healthcare, Marshfield Clinic, and the Aurora Visiting Nurse Association. Thanks to funding made available in last year's stimulus bill, the federal government is making efforts to expand our national broadband network so that more doctors and patients can take advantage of these technologies. Through the Judiciary Committee, we are working to ensure that this is done in a way that fosters competition amongst broadband providers. Unfortunately, despite the spread of broadband, several stumbling blocks stand in the way of widespread adoption of telehealth technologies in the home. Senator Wyden and the witnesses he has invited today will shed light on this timely issue, and hopefully suggest some potential solutions. I'm sorry that I cannot stay very long, as I have other obligations and prior commitments. But I have full confidence in Senator Wyden, and I thank him once again for his contributions to the Aging Committee. I'll now turn over the gavel. OPENING STATEMENT OF SENATOR BOB CORKER Senator Corker. Mr. Chairman, I want to thank you for having this hearing. Certainly, Senator Wyden always has lots to talk about when it comes to innovation. So, I think all of us, especially after the debate we've had over the last 14 months, know that one of the things we still haven't addressed is cost. That hopefully the kind of things we're talking about today, and we'll learn from and then expand on--hopefully, these are the kind of things that help us move ahead into the future so that people throughout our country have access to quality healthcare, and yet it's being done at a much lower cost. So, I'm glad we're able to review the impediments to some of the breakthroughs today. I want to thank you both for calling this hearing. Certainly the wonderful witnesses that we have, not only here, but through, again, great technology, from other places. So, thank you very much. The Chairman. Thank you, Senator Corker, well said. Senator Wyden. OPENING STATEMENT OF SENATOR RON WYDEN Senator Wyden. Thank you very much, Mr. Chairman, and for all of your leadership and, particularly, putting the field of aging on the side of innovation. All through the health reform debate, when we talked about the future of healthcare reform, you constantly kept coming back to the question of how we look, not just over the next few years, but into decades ahead. This gives us a chance to do that. I thank you very much for your leadership, and it's a pleasure to be able to serve with you. To my friend Senator Corker, we talk often about healthcare, and I think one of the other two aspects of this hearing that you two illustrate is how important it is that the big issues, like healthcare, be dealt with in a bipartisan way. We didn't get enough of that in the healthcare reform, but there are a lot of us who believe, in the years ahead, there are going to be a lot of opportunities to prosecute this question of the future of American healthcare in a bipartisan way. You, Mr. Chairman and Senator Corker, set a very good example for it. I thank you both for always making sure, in the Aging Committee, we don't get lost in some sort of petty partisan kind of discussion. I thank you both. Today's hearing is about how new healthcare technologies that use a high-speed Internet connection can better meet the health needs of America's seniors. These new technologies can save the older people a trip to the doctor or, in tragic instances, to the emergency room. I'm of the view that a number of these technologies will save Medicare money in the years ahead. So, for the purpose of this hearing, I'm going to call these new technologies ``e-care.'' It is also a subject that the Federal Communications Commission is focused on. I want to take a minute to just talk a little bit about the possibilities for e-care. I'm going to use a couple of devices to highlight it. I'm old enough to report that I always call them ``gadgets.'' But, what we're talking about, folks, for example, using is a device like this. It isn't on the market just yet. But, what this is, is, in effect, a high-tech Bandaid. It attaches to a patient's skin, and it's loaded with drugs that are administered in the exact way the physician prescribes; that's wirelessly. That means that a doctor can vary the dose, based on the information the doctor receives. The patient doesn't have to go into the doctor or the pharmacy to change his or her prescription. So, then we go to the next device. We call this, I guess, some version of a Health Pal. This device connects to other devices that would measure a patient's blood pressure and glucose levels, obviously areas that any physician treating a diabetic patient wants to know about. It then wirelessly uploads the data to an electronic medical health record that is monitored by a healthcare professional. So, then we go to one of my favorites, a third device. In effect, this is a product that's available on the commercial market now. So, what you do here is, you, in effect, put your finger in it, something along the lines of what I'm doing. This particular product measures the pulse and the level of oxygen in a patient's blood. So, right here in this small device is critical information for those patients who have cardiovascular disease. Then, this device transmits the data to what the physicians call their ``SmartPhone'' in an electronic medical record. So, then you get a readout that, in effect, confirms to your spouse that you have been eating properly and exercising. So, the last device that I would bring before the committee politely, if I could characterize it, attaches to a patient's chest to monitor the heart. This will, in effect, produce data that uploads to a physician, enabling that physician to call the patient if there is a problem. So, this small device can help prevent a heart attack among America's seniors. Now, many of these devices are targeting the population that have chronic conditions. These are the folks who might make up perhaps 10 percent of those on Medicare, but whose care each year accounts for up to 85 percent of all Medicare spending. I'm of the view that e-care could be a huge step forward in improving the care for older people and lowering costs to Medicare as a government program. At the same time--this is a matter that Senator Corker and I, I think, talked about during our times of negotiating how we might pursue cost containment. I want to make clear that I'm not of the view that everybody ought to be able to run up with a gadget and say, ``OK, let's now make this eligible for Medicare reimbursement.'' This is going to have to involve a program to really scrutinize the cost-effectiveness of the various products, and what they will do for the patient. We know that Don Berwick has been nominated to head an important office in this area, the Federal Medicare Program. I think that he ought to examine e-care as one of his top priorities. The reason I feel so strongly about this is that the Medicare reimbursement system is fundamentally flawed. We saw, in the course of the Medicare Reform debate, that, in many respects, it rewards inefficiency and it generally only pays the older people when they go, in person, to the physician's office. So, in effect you have a system that literally rewards volume, rewards people who come in, whether or not that might be the appropriate approach. You will have, in my view, if that persists, greater expense for Medicare and the taxpayers than you would have if you looked to the kinds of technologies that I've offered the committee here today, that could allow people to be cared for, I think, in a more constructive way at home; produce better quality and more timely care at a cheaper price to taxpayers. So, among other things, I hope today's hearing will help spark rethinking the way Medicare pays doctors. At this point, Medicare barely acknowledges the existence of e-care. Medicare spends over $400 billion a year; about 2 million is spent on these kinds of technologies. In particular, I think these e- care technologies could reduce hospital readmissions, which could, in turn, save the Medicare program from substantial costs, in the years ahead. Now, what all these devices and technologies require is access to a high-speed Internet connection, what is commonly referred to across the country as ``broadband.'' So, that's why today's hearing is also going to consider the national broadband plan that was developed by the Federal Communications Commission and delivered to the Congress last month. That was a plan that was mandated by the Congress, and it demonstrates that high-speed Internet is the backbone of e-care. The broadband plan is the blueprint for how to make a high-speed Internet connection as ubiquitous as a phone line or an AMFURTHERMORE signal. Now, in the 20th century, infrastructure that enabled the movement of goods, people, and protons is what separated developed countries from the developing ones. In the 21st century, broadband infrastructure will be a central component of the competitiveness of any country and its producers. According to the broadband plan, one in three Americans do not have broadband at home. The United States lags far behind other countries in the adoption of broadband and e-care that would improve healthcare and save hundreds of billions of dollars in health costs. So, there are big, big traffic jams and unpaved roads on the information superhighway that is called the Internet. That is holding back improvements in healthcare for those in rural and tribal areas. Seventy percent of small physician offices which aren't located in metropolitan areas don't have access to an affordable broadband service that is available in the metropolitan areas. Many of these providers have to pay three or four times the price for the same broadband service that an urban provider pays. I'm of the view that Congress and the Federal Communications Commission ought to deploy significant public resources to deliver broadband to areas where the private market has not yet been able to deliver the service. Moreover I believe that rural healthcare providers ought to receive assistance in purchasing broadband services if they are not affordable in their area. Only when the country has a reliable broadband infrastructure and policies in place to encourage the development and deployment of innovations in healthcare will it be possible to transform the healthcare system that is today all about ``sick-care'' into one that finally focuses on healthcare and keeping our folks well. Achieving that will allow America's older people the ability to more comfortably age in place. Let us turn now to colleagues who have a longstanding interest in this. I know Senator Collins and I talk often about healthcare, and continue to have an interest in a number of bipartisan healthcare reforms. Senator Corker, would you like to say anything else, to begin? Senator Corker. That's the longest opening statement I've ever given so---- Senator Wyden. Well, I---- [Laughter.] I tell you, you're a role model for us, and we thank you for it. Senator Collins, any remarks. OPENING STATEMENT OF SENATOR SUSAN COLLINS Senator Collins. Thank you. Thank you, Mr. Chairman, for calling this important hearing to examine the ways that we can unlock the value of broadband to bring telehealth and other patient monitoring technologies into the home. According to the National Broadband Plan that the FCC submitted to Congress last month, the development of the broadband network and health information technologies has the potential to truly transform healthcare, simultaneously enabling better outcomes and lowering costs. The FCC found that increased use of electronic health records and remote patient monitoring, alone, could reduce healthcare costs by more than $700 billion dollars over the next 15 to 25 years. Moreover, in addition to the significant cost savings, these technologies have the potential to improve the quality of life for our seniors dramatically by allowing them, as you've pointed out, ``to age in place'' in the comfort and security of their own homes and their own communities. A recent study of remote patient monitoring programs at the Veterans Administration found that it resulted in a 19-percent reduction in hospital admissions, a 25-percent reduction in bed days of care, and an 86-percent patient satisfaction rate. Moreover, the average cost per patient was $1600 per year, as compared to more than $77,000 a year for nursing-home care. Mr. Chairman, the benefits of these technologies, both in terms of cost savings and quality of life, are clear. They assume particular significance in rural States, like mine, the State of Maine, which have serious shortages of primary care and specialty physicians, and where patients often have to travel long distances to receive healthcare services. Yet, the United States continues to lag far behind other industrialized nations in the adoption of these critically important technologies. This afternoon's hearing will give us the opportunity to examine whether implementation of the National Broadband Plan will provide for more widespread adoption of these technologies. It'll also give us the opportunity to identify barriers to using telehealth and remote patient monitoring devices that rely on a broadband connection. Finally, it will help us to determine what more the Federal Government can do to increase access to these new and rapidly developing technologies. Again, thank you, Mr. Chairman, for calling this afternoon's hearing. Senator Wyden. Thank you very much, Senator Collins. I think--all three of us represent States with substantial rural areas, and I think this is particularly important, to highlight your point, that this can compensate for the distance from a lot of major health facilities. Senator Collins. Absolutely. Senator Wyden. I appreciate the points. Let us go now to our first witness, who, due to the challenges of the airlines, is going to speak to us from London. I note that he comes today to talk about technology, through the use of modern technology. We welcome Dr. Mohit Kaushal. He is the Digital Healthcare Director at the Federal Communications Commission. He led the healthcare team that contributed to health sections of the broadband plan delivered to the Congress. This was mandated by the Recovery Act. He's also an ER physician by background. Why don't we begin with you, Doctor? STATEMENT OF MOHIT KAUSHAL, DIGITAL HEALTHCARE DIRECTOR, FEDERAL COMMUNICATIONS COMMISSION, WASHINGTON, DC Dr. Kaushal. Senator Wyden and others on the Senate Special Committee on Aging. I hope you can hear me.---- Senator Wyden. We missed a little bit of your first few words, but we're hearing you now. Dr. Kaushal. Great. So, thank you for the introduction. As you said, I head up the healthcare team for the National Broadband Plan at the FCC. As you know, Congress mandated that the FCC prepare a National Broadband Plan. The plan also recommends how broadband can be harnessed to tackle important national purposes, including healthcare. Improving America's health and America's healthcare system is one of the most important tasks for the Nation. Healthcare already accounts for 17 percent of U.S. GDP; and By 2020, it will top 20 percent. This is due to many factors, but one of the most important is that America is aging. There is a direct correlation between the elderly and chronic disease---- Senator Wyden. Doctor, we just lost you. Can you hear me? Dr. Kaushal. I can hear you perfectly. Senator Wyden. OK. If you can back up one sentence. We just lost you, about a sentence ago. Dr. Kaushal. Got it. So, healthcare already accounts for 17 percent of U.S. GDP; and by 2020, it will top 20 percent. This is due to many factors, but one of the most important is that America is aging. There is a direct correlation between the elderly and chronic disease, which already accounts for 75 percent of the Nation's healthcare costs. By 2040, there will be twice as many Americans over 65 as there are today. But, there's a set of broadband-enabled health information technologies, both now and emerging, that can mitigate many of these issues and reduce the cost of care while improving clinical outcomes--to the study that claims that remote monitoring could generate net savings of approximately $200 billion over 25 years, from just four chronic conditions. Although economic studies like these are open to criticism due to the difficulty in quantifying savings, the Veterans Hospital System has implemented its Care Coordination Home Telehealth Program, which has resulted in improved clinical outcomes and significant cost savings. Even though these technologies hold great promise, the U.S. lags behind other developed countries in health IT adoption, with one study ranking it in the bottom half on every metric used to measure adoption. The plan identifies some of these barriers that prevent the use broadband-enabled health solutions, and provides specific recommendations that government should undertake to remove them. So, with respect to the e-care technologies that enable ``aging in place,'' these barriers and subsequent proposed solutions fall into three main categories. Firstly, the connectivity gap; broadband is either missing or too expensive in some cases. Second, misaligned economic incentives; the prevailing fee-for-service reimbursement system pays for volumes rather than outcomes, and hence prevents many of these technologies from being paid for. Third, outdated regulations, created back when our only interactions with physicians were in their offices, not via remote monitoring and videoconferencing. So, let me now discuss each one of these briefly. The first issue is connectivity, including both broadband at home, as well as connectivity to health providers. With respect to the home, the plan estimates that 14 to 24 million Americans do not have access to broadband where they live, even if they want it. It's hard to identify what proportion of this is over 65, but what we do know is that the over-65s are poor adopters of broadband, estimated to be 35 percent, as compared to the national average of 65 percent. My focus and my team's focus has been primarily on the connectivity issues for healthcare providers. It is imperative that hospitals and physician offices have adequate connectivity, as any care that will be delivered to an individual's home will likely originate in a healthcare facility of some description. Our analysis highlighted that some providers are not served by existing mass-market broadband infrastructure, and others are facing large disparities in the price of broadband. The plan addresses this issue by proposing a revamp of the FCC's Rural Healthcare Program, which, capped at $400 million per year, is the largest sustainable fund for healthcare connectivity within the government. Second, although the connectivity supply problem is an issue, the greater barrier is on the demand side of the equation. Within a fee-for-service reimbursement system, providers bear the costs of health IT implementation and changes to their workflow, but don't fully capture the economic gains they create through improved clinical outcomes. The plan recommends that well-understood use cases of e-care technologies should be incented with outcomes-based reimbursement. In addition, novel technologies should be tested for their clinical efficacy, as well as within novel payment models, in order to ascertain their economic value. Senator Wyden. Doctor. If you wouldn't mind, I--I've just been summoned, because the Budget Committee is trying to wrap up, and apparently they can't do it unless I arrive. Could I impose on my colleagues, Senator Corker and Senator Collins, who I know will very ably handle this is my absence? Senator Corker. Absolutely. Senator Wyden. Very good. We'll see you shortly. Doctor, my apologies. I'll get back as soon as possible, to all our witnesses. Thanks. Dr. Kaushal. Thank you very much. So, let me continue then. Given that it will take many years to implement an outcomes-based payment model, reimbursement should be expanded for e-care technologies that will prove systemwide expenditure reductions under CMS's fee-for-service model. Third, there are a range of regulations that prevent e-care solutions from being adopted. State licensing, credentialing, and privileging rules prevent physicians from providing remote broadband-enabled care. Patient safety must be addressed by ensuring that physicians are suitably skilled, but regulations must not hinder the innovation and gains promised by health IT, and should, therefore, be reevaluated. In addition, there is a great deal of regulatory uncertainty regarding the convergence of telecommunication and medical devices, which is preventing private-sector investment and innovation. Further regulatory transparency within the area must be provided to industry. The FCC and FDA both recognize this need, and we're working together to address it. So, in conclusion, there are multiple barriers that must be resolved in order to develop the ecosystem of broadband-enabled health IT. Technology alone will not solve our healthcare challenges. It must be coupled with payment reform, innovation in service delivery, and improved regulatory transparency before we will recognize the benefits of all these technologies. Thus, any government approach to solve these issues must be coordinated, not only across the government, but with the private sector and the entire healthcare community. I thank you all for giving me the opportunity to speak today. [The prepared statement of Dr. Kaushal follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Senator Corker. Thank you very much for that outstanding testimony, and especially in different time zones and different places. Our second witness is Dr. Farzad Mostashari, if I pronounced it correctly. Dr. Mostashari serves as Senior Advisor with the Office of National Coordinator of Health Information Technology at the U.S. Department of Health and Human Services. His latest work has been on the implementation of health IT provisions and the American Recovery and Reinvestment Act. He holds both a medical degree and a master's in public health. Congratulations. We welcome you here and thank you for your testimony. STATEMENT OF FARZAD MOSTASHARI, SENIOR ADVISOR TO THE NATIONAL COORDINATOR FOR HEALTH INFORMATION TECHNOLOGY, U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES, WASHINGTON, DC Dr. Mostashari. Thank you, Ranking Member Corker, Senator Collins. I'm Dr. Farzad Mostashari, as you said, Senior Advisor to the Office of the National Coordinator for Health Information Technology. Thank you for the opportunity to testify before you on HHS's efforts to harness telehealth, to transform healthcare and improve health, and support aging in place by America's seniors. The American Recovery and Reinvestment Act of 2009 made a historic investment in health information technology, providing up to tens of billions of dollars in incentive payments for certain Medicare and Medicaid providers who adopt, and are meaningful users of, certified electronic health record technology. These are unprecedented, outcomes-oriented investments. The goal is not just for providers to purchase and install health information technology, but to make improvements in health and healthcare through use of health IT. This means our goals are to increase healthcare quality and safety, reduce disparities, engage patients, improve efficiency of care, and enhance care coordination. It's abundantly clear that telehealth can make substantial contributions in all of these areas and help elderly patients remain in their homes and avoid costly and unnecessary hospital admissions. As Senator Collins pointed out, the Department of Veterans Affairs has dramatically decreased unnecessary hospitalization through a wide-ranging effort to help veterans manage chronic conditions at home. Hospital use decreased 25 percent overall, and 50 percent for patients in highly rural areas, by linking 32,000 chronically ill veterans with healthcare providers and care managers through video phones, digital cameras, messaging, telemonitoring. There are also many private-sector examples of these innovations. Using home-based monitoring and Web-based care to improve medication management, an effort at Group Health in Washington State almost doubled the number of hypertensive patients with controlled blood pressure and made care more convenient and responsive to patient needs. Kaiser Permanente has reported on increased use of e-visits, increasing primary care capacity. Technologies for telehealth and e-care, and the payment and delivery structures to support them, are evolving rapidly in the marketplace. New offerings combine telehealth technologies with innovative service delivery platforms that have the potential to transform care for the elderly, making it more responsive and available to support aging in place. I'll give one example. A company named American Well partners with health plans to deliver just-in-time video- supported e-Care to patients with an Internet connection. The model leverages a large network of patients and providers, who can connect securely on the Internet, along with existing plan licensing arrangements, provides malpractice coverage, and takes advantage of distributed excess physician capacity. A wide range of initiatives and programs across HHS aim to support innovation in telehealth in three areas: video consultation services, remote patient monitoring, and secure sharing and reading of patient information, like radiographic images. Secure sharing and remote reading of patient information, professional interpretations of tests or specimens that require practitioner reviews, need not be done at the same place that the care is delivered. Radiographic images on high-speed channels can improve care coordination and reduce the risk of medical errors. This already occurs widely under Medicare, and is treated no differently than services provided onsite at the medical facility where the patient is located. Many radiological and pathological services, including reading X- rays, interpreting EKGs, examining tissues specimens, are routinely provided in this manner. Video consultation services that require face-to-face contact can occur across sites of care, or in patient homes, addressing geographic and other barriers to care, including low mobility. Medicare pays for telehealth services for beneficiaries seeking care in certain rural and non-urban provider sites, including critical-access hospitals, rural health clinic, and federally qualified health centers. This includes telehealth services provided by physicians and nonphysician practitioners; for initial and followup inpatient consultations; office or other outpatient visits; and pharmacologic management, among other clinical services. In addition, States are encouraged to use the flexibility inherent in the Medicaid program to create innovative payment methodologies for services that incorporate telehealth technology. Home monitoring can place daily metrics of patient's health, weight, blood pressure, other vital measures in patients' and providers' hands, improving chronic-care management and patient engagement; avoiding unneeded hospitalizations for patients with heart failure and other chronic conditions. CMS already pays for some examples of this with home-event cardiac monitoring and Holter monitoring. The Health Services and Resources Administration funds six telehealth networks focused on improving outcomes and access for seniors through telehealth care and telehome monitoring. Initial evidence of the impact of HRSA's telehealth programs is encouraging. From 2006 to 2007, the number of patients achieving glycemic control, a key indicator of successful diabetes management, rose from 34 to 42 percent. Since 2004, AHRQ has awarded over $260 million in grant funding for health IT, including 23 telehealth projects in 16 States. For example, supported by funding from AHRQ, patients at Saint Vincent Hospital, in Billings, MT, share realtime information about weight, blood pressure, and blood sugar with physicians across phone lines with the simple touch of a button. I heard, this morning, from Cleveland Clinic about their dramatic shift away from episodic to continuous care using these methodologies. While there is evidence that certain telehealth applications can improve care and reduce certain unnecessary costs, more information and experience is needed about which strategies are most effective, and under what circumstances; how to integrate telehealth with traditional healthcare delivery, and reduce barriers to adoption; and how to assure privacy and security of health information shared through these technologies. Patient safety issues will be carefully considered by the Food and Drug Administration to address the challenges and safety risks of using medical devices that were not designed for use in this setting, or by lay users in the home. Over the upcoming months and years, there will be considerable investment in innovative care-delivery models and payment approaches that can foster telehealth. New models for deploying and integrating telehealth technologies will be developed and tested through the HITECH Beacon Community Grant Program. This initiative will support at least 15 vanguard communities, many of them predominantly rural, with high levels of electronic health record adoption to lead the way in demonstrating concrete and measurable improvements in areas such as patient experience, health disparities, and national high-priority health conditions, such as blood pressure and diabetes control, and reducing unnecessary hospitalizations. Many applicants propose to integrally involve telehealth in these efforts. But, most significantly, looking forward, the Affordable Care Act allows providers to utilize a series of new and innovative delivery system and payment reforms, such as accountable-care organizations, bundled payments, and value- based purchasing, which incentivize high-value healthcare that focuses practitioners on the quality, not quantity, of care. As providers do so, we expect that the use of innovative telecommunications technology in medical care will be fostered. The new Center for Medicare and Medicaid Innovation has given explicit authority to test innovative payment and service delivery models, which may include care coordination for chronically ill individuals at risk of hospitalization through telehealth, remote patient monitoring, care management, and patient registries. These new payment approaches mean a move away from fee-for- service payment toward a more outcome-oriented approach, as Senator Wyden suggests. This allows for adoption and use of technologies and care delivery approaches that improve care, engage patients, and reduce unnecessary spending. We don't yet have all the answers. They will come from continued market-based technology innovation, paired with more results-oriented payment and thoughtful study to capturing the lessons and evidence from ongoing efforts. Thank you for the opportunity to testify today. [The prepared statement of Dr. Mostashari follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Senator Corker. Thank you very much for your testimony. A matter of fact, since we typically start here with the other side of the aisle, I'm going to start with you. Even though---- Senator Collins. Uh-oh. Senator Corker [continuing]. We're on the same side of the aisle. Senator Collins. Does that mean you consider me to be a Democrat? Senator Corker. Not at all. Senator Collins. I hope not. [Laughter.] Senator Corker. You're a great partner. Senator Collins. Thank you, Mr. Chairman. How's that sound? Senator Corker. Very good. Senator Collins. I thought it might. I'd like to discuss, with our witnesses, a couple of challenges to telehealth and monitoring, using broadband technologies. One of the problems is, this technology holds the greatest promise for rural areas and senior citizens. Yet, if you look at rural areas and senior citizens, those are the two categories where broadband and digital literacy is the lowest. Rural areas tend to have been left behind. I know we're trying to fix that. Seniors tend--not all of them, but as a group-- tend to have a lesser degree of digital literacy than younger Americans. The cost issues perhaps can be solved through subsidies, but those cultural issues and infrastructure issues are more complicated. So, I'd like both of you to comment on the challenges faced by the lower rate of digital literacy among seniors, and the lower availability of broadband in our rural areas. As I said, it's ironic, because that's where telemedicine could be most helpful. Director, why don't we start with you. Dr. Kaushal. Great. I only picked up a part of that question, I'm afraid--you're talking about--and the elderly, and then some of the complex issues that they face, correct? Senator Collins. I was talking about the fact that the senior population is less likely to have access to broadband technologies in their homes. Dr. Kaushal. Right. Let me just talk about some of the statistics that some of my colleagues at the National Broadband team came up with after a lot of analysis. So--you're very correct--so, the national average for adoption of broadband is 65 percent. The over-65s, on average, are only 5 percent, in terms of adoption of broadband. This is due to multiple reasons, but digital literacy leads the way, at 29 percent. The relevance of digital content is second, at 26 percent. Cost is third, at 22 percent. This is very different than the national averages of other age groups. So, they have very specific reasons why they're not adopting these technologies. We spent a lot of time thinking through that. Then the other issue is just, in rural areas, there's just--penetration of broadband. So, the plan, in its totality, has come up with a number of proposed recommendations to solve these--both supply and demand-side issues. So, if we talk about the infrastructure side first--as you know, one of the goals is to promote -00 percent penetration of 4 megabits per second down, and 1 megabit per second up. It will do that in a number of ways. First of all, making it just easier to access poles and rights-of-ways for the private sector. Also, lower the cost of deployment trenching is very expensive, so proposals to allow--if the ground is opened up, for whatever reason, that fiber should be laid there. Then, on the adoption side, which we all think is a much more complicated issue, although the adoption is lower than average in the over-65s, there's a huge disparity within that group, as well. So, what really is required is a lot of research. A number of centers are doing this, and we've worked with a couple of them. How do we provide innovative solutions? Healthcare is one of them. By providing applications to let the elderly manage their conditions better, to stay in contact with their loved ones, we really feel that adoption will be increased. Then, go back to the question of reimbursement. Physicians and providers really have to be incented to trial and test as many of these technologies as possible within this elderly population. Unfortunately, by just doing one, won't solve the problem at all. We have to really push forward on all these different avenues. The issue is complex, as you outlined. Senator Collins. Thank you. Doctor. Dr. Mostashari. I think the supply issues will, we trust, be dealt with. I agree with you, that the demand side is a key issue. As Dr. Kaushal pointed out, people have to have a reason for getting online. I applaud the broadband plan's strategy, focusing on rural health providers. For every primary care physician with an electronic health record who adopts technology, there are thousands of patients--elderly patients, patients with chronic conditions--who will have a reason to go online. My parents use the Internet faithfully to be in touch with their providers, to look at their lab results, to ask for a refill, to ask a question. It is those--enabling those health providers to use electronic health records, to have patient portals that will create the demand on the side of the elderly, those with chronic conditions. So, I think that the approach that the broadband plan takes, in terms of focusing on the health sector, is appropriate. Senator Collins. Thank you. Mr. Chairman, do you want me to continue, or do you want to switch off? Senator Corker. Well, let's just go back and forth. Senator Collins. Sure. Senator Corker. I was very interested in what you were saying about being able to share capacity, if you will, in the medical system by using this type of technology. If somebody doesn't have that much of a load, they could deal with a patient. But, I also understand that what you do is very complex, that it's really not just science, but also art, knowing the patient, sort of following through with a patient. How much of that, if any, is diminished where you actually-- especially in this case of not just using this technology, but sharing physicians that may not have familiarity with the patient, themselves? Dr. Mostashari. I think that is--it's a very perceptive point. Clearly, having a patient-centered medical home is an important aspect to provide continuity of care and the knowledge of the patient. The home doesn't necessarily need to be provided by one provider, though. One of the, I think, important innovations that is happening is, through the use of information technology, making sure that everybody who touches the patient has access to all the information. Not necessarily all the medical information, at least; not necessarily the years of relationships that have built up between the patient and provider, which is critically important, but at least all the medical facts are available to everybody who touches the patient. That is one of the really important advantages of electronic health records, compared to paper--their availability, wherever and whenever the provider needs them. Senator Collins. Let me follow up on an issue that many hospitals in my State have brought to my attention. As part of last year's Recovery Act, Congress made a major investment of some $19 billion to increase the meaningful use of electronic health records on the part of both hospitals and physicians. Hospitals can collect an initial bonus, and an extra payment each time a Medicare patient is discharged. But, a number of the smaller financially strapped hospitals in my State are struggling to find the funds necessary to build the infrastructure that they would need to meet the meaningful use or criteria. These are the ``tweener'' hospitals, we think of them as. They're too big to be critical access hospitals, or they don't qualify as critical access hospitals for other reasons. But, they're not large enough to enjoy any economies of scale or to have the resources to do the investments that are needed. If these smaller hospitals fail to meet the meaningful user criteria, then they not only are ineligible for any of the bonus payments, but they'll actually, eventually, be subject to penalties. Are you aware of any assistance, any grant programs or sources of Federal funding, that could help these hospitals cover their initial startup costs? I will tell you, when they first started coming to me, I said, ``Oh, we put all sorts of money in the stimulus bill for this purpose, $19 billion.'' I thought surely that would be a source of funding, but it's proving not to be. Dr. Mostashari. We are carefully looking at all sectors in the marketplace, and quite concerned that digital divides not develop in any of the critical sectors, whether it's safety nets, critical-access hospital, rural health hospitals, small practices, primary care practices. There are many, many, many segments within our healthcare--diverse and heterogeneous healthcare environment that could face significant challenges, whether it's because of the lack of capital and access to capital markets, or human resources, technologic know-how. We have put in place many programs to support different slices of those communities. We are expecting the marketplace to step in, for example, on the credit side with the hospitals, who are--as a group tend, to be more financially capable than, for example, small practices. I take your point about the tweeners, that there may be hospitals that are bigger than the critical-access hospitals, and smaller and less financially robust than the larger centers. Recently, the House and Senate passed the extension of the meaningful-use payments to hospital-based outpatient providers who could--and those are additional dollars that the hospital-- could be directed toward the hospital, on the outpatient side, building out their information systems and EHRs. So, we do have, through the Regional Extension Center Program, which is our single largest investment from ONC's onetime ARRA expenditures--we have established network of Regional Extension Centers to help provide project management, technical assistance know-how, education to primary care providers and smaller practices, community health centers, and we recently added a supplement for critical access and rural hospitals with fewer than 50 beds. So, we will continue to monitor. If it emerges--we're doing--working with the American Hospital Association on surveys to monitor the rates of adoption and meaningful use among hospitals, and if something emerges--a gap there emerges, we will be constantly looking for ways to improve that. Senator Collins. Thank you. Senator Corker. Director Kaushal? Are you tuned in? Dr. Kaushal. I am. Senator Corker. Good. I didn't know if you were operating your BlackBerry or listening to us. I just thought---- [Laughter.] I'd check. You mentioned something that all of us talked about a great deal over the last year, and that was paying for outcomes. Obviously, you know, in our fee-for-service program right now, there's really not a real way to deal with this type of technology in that sphere. Yet, all of us, I'm sure, have been down on the Senate floor, at one time or another, talking about the fact that our payment system needs to be based on outcomes. But, could you describe a little bit how that might work? Just--you know, not 8 pages, but a paragraph or two about how that might work in this sphere. Candidly, even in the traditional sphere of physician services. [No response.] OK. So, you might want to start again, or maybe not--take the mute button off, possibly, if---- Dr. Kaushal. Can you hear me now? Senator Corker. You're at---- Senator Collins. Yes. Senator Corker. Yes, sir. Dr. Kaushal. Hello? Senator Corker. Yes, sir. Senator Collins. We've got you back. Dr. Kaushal. Great. So, as I was saying--on this, because-- the recommendation that--. I think Farzad was spot-on, in terms of--we need to really trial and experiment with many of these technologies to understand the economic impact,--accountability--organization. These are a range in different payment model pilots which are being undertaken. What we suggested is that these technologies explicitly be trialed in those pilots to understand whether they do result in improved economic outcomes. We don't want to carte blanche reimburse for every single technology, because that would bankrupt the system. We have to really understand what works or not. Then the next step is, if things work, there has to be a mechanism to implement them, which is what some observers see out there as some of the disconnect over the last couple of years. Then the second way--my second point to answer the questions that there are already great news cases out there. We've already talked about the VA and the great data that they received. News cases from systems like that should be analyzed to understand what worked, what didn't work, and is there a method to translate them into outcomes-based reimbursement, perhaps by the extension of meaningful use? The important caveat there is, of course, that the VA is an integrated healthcare system and has a very different incentive mechanism. Senator Corker. So, if I might ask you the same question, just following up it seems to me that, at present--I think all of us would love to see a system that, instead of paying for volume, paid for outcomes, but it's hard to find that, right now, isn't it? Dr. Kaushal. Sorry, I. [Laughter.] Dr. Mostashari. You know, there's the famous story about the drunk looking under the street lamp for his keys, and, you know, they asked him, ``Where--did you lose them here?'' He said, ``No. But, it's--the light's good over here.'' That's been a limitation in our ability to measure quality--for so long has been the information that we had access to in order to measure quality. I believe that the healthcare ecosystem will be a dramatically different one if we succeed--and I believe that we will succeed, in the next 5 to 10 years--of creating a health IT infrastructure that can collect information--structured information electronically about the things that matter, that really affect health and patient satisfaction and care coordination, and that we will be able to use that health IT infrastructure to produce meaningful quality measures that can form the basis for payment innovations. So, I think this--the environment is changing. In many ways, HITECH was the first and important cornerstone for that to develop. Senator Collins. Just one final question. We've seen, in the past few years, an increase in cybercrime. We've seen breaches of Internet security that have caused people to be subject to identity theft and lose personal financial information. While the development of broadband networks and health technologies clearly has the potential to transform healthcare in a very positive way, doesn't it also raise some new concerns about the privacy and security of some of the most sensitive personal information that anyone has--that is, their medical records? How do we address those concerns? Whoever I can hear. [Laughter.] Dr. Kaushal. I'll take--computing as applied to other industries. There've been huge gains, both in terms of productivity and the--. But, you're very correct, healthcare has a very specific security and privacy issue. Having said that, so does finance. The reason some of the real unknown questions, when we think about, What does constitute a medical grade network?--and this is one of the regulatory uncertainties when we do think about this convergence--so, this is one of the major topics the FDA and we are working on. We're right in the early stages, but we hope to really define the privacy and security issue in a much more tangible way. Senator Collins. Thank you. Doctor. Dr. Mostashari. It is No. 1, two, and three, in terms of concerns that we have to be attentive to, and leave no stone unturned in doing so. There are policy, clearly, issues that need to be determined. We're working with the Health IT Policy Committee that was created under the HITECH legislation and has been tremendously helpful in setting a framework for us, not only in meaningful use, but also now we're moving into the privacy and security realm. We have to work with practices. Ultimately, it's not just about the--whether you have the right policies, it's not about whether you have the right laws, it's not about whether you have the right technology, it's about whether they're implemented. So, the best technology in the world, or the best policies in the world do you no good if, in the provider's office, they don't use the technology appropriately. That's one of the things that, in addition to technology innovation--we just awarded a research award to 20 investigators from 12 topflight universities around--on our security research. We're working diligently. We have, now, a chief privacy officer for the Department of Health and Human Services, and the Office of National Coordinator. So, we're really tackling it from a policy side, from a research side, from a technology side, from a standards perspective, around encryption, around identify assurance, and so forth. We're merging these activities with the--over all the administration activities around cybersecurity. But, we're also looking at on-the-ground--boots-on-the-ground in the doctor's offices and using the Regional Extension Centers as a key point of education to make sure that the practices do a risk--a security risk assessment and take steps--practical steps to reduce the risk of the network. Senator Collins. Thank you. Thank you, Chairman. I yield. Senator Corker. We thank you both for your testimony, and I appreciate your input. We look forward to our staffs following up with you in the future. Again, thank you for doing what you're doing to advance something that I think we all think is very promising. So, thank you. I'll say goodbye to our friend in London. I hope you have an enjoyable evening. With that, we'll bring the second panel up. But, thank you, Doctor. Thank you, Director. [Pause.] So, I want to welcome each of you. I apologize for the way this hearing is. This is kind of the way things are in the Senate, especially when votes ended 3 hours ago, and a lot of people ran to airports and to do other things. But, you're testimony is all part of a public record. When we advance legislation here, we have to have hearings that take place. Our staffs follow up. So, this is all for good. Let me introduce each of you. Our first witness on the panel is Eric Dishman. Mr. Dishman represents the Continua Health Alliance, a consortium of industry leaders in the field of telehealth and e-care technologies. Mr. Dishman is a longtime, well-known advocate for personal healthcare and innovation. We thank you. Our second witness is Dr. Robin Felder. Dr. Felder is a Professor of Pathology and Associate Director of clinical chemistry at the University of Virginia School of Medicine. He served as a founding Director of the Medical Automation Research Center, MARC, from 2002 to 2008. He holds a Ph.D. in biochemistry. Thank you. As you can imagine, I'm especially proud to introduce our third witness, Richard Kuebler. Mr. Kuebler is telehealth department head at the University of Tennessee Health Science Center. We thank you for the advancements you all are making there in this field. He has worked in telehealth for over a decade, and can share the experience of providers using this technology. So, we welcome all three of you. Thank you for your testimony. STATEMENT OF ERIC DISHMAN, INTEL FELLOW, INTEL CORPORATION, GLOBAL DIRECTOR OF HEALTH INNOVATION AND POLICY, INTEL DIGITAL HEALTH GROUP, SENIOR POLICY ADVISOR, CONTINUA HEALTH ALLIANCE, SENIOR FELLOW, CENTER FOR AGING SERVICES TECHNOLOGIES, WASHINGTON, DC Mr. Dishman. Great. Well, thank you, Mr. Chairman. It's great to be here. I have been working on aging-in-place technologies for the last 20 years of my life. I'm really thrilled to have this testimony today. It's ironic. Almost 6 years ago to this day, I spoke to this very same committee, to a different Congress, and said a lot of the same things I'm going to say today. I'm going to repeat them today, with a bit more urgency, given that we're moving quickly toward 2017 and the demographic crisis that we face. Senator Corker. I wasn't here then. I thank you for repeating things. Mr. Dishman. I have---- [Laughter.] I will come back 6 years from now, but I hope we've made progress by then, and I believe we will have. Before I introduce myself, I want to introduce two technologies to you, because in--frankly, they're more important than I am. The first is this small device here. We probably--if I look around this room and took a survey, a large number of us would have an experience with a loved one--a parent, a grandparent--who have had a fall in their home. Falls, in the United States, cost about $44 billion, annually. One out of three people over the age of 65 fall each year. It's a classic problem that leads people to institutionalization, if not death. I believe, I don't know, but through our research, we're trying to discover, that 70 to 80 percent of falls could be prevented in the first place through some simple technologies like this. I've had this in my pocket. It's been tracking not only my number of steps per day, but also micro movements that are looking at, ``Am I becoming more unbalanced and more unstable, or changing the rate of speed in my walking norms around the kitchen, or around the home, or around the hallways of Congress?'' This kind of data's never been collected in the real world before. We're collecting this kind of data with hundreds of households in Oregon, where I live, and hundreds of households in a lab in Ireland. The hope is that by collecting real-world data, not bringing patients into a clinic encounter and saying, ``Are you feeling more unstable on your feet?'' and, ``How have you been doing with falls in the last few weeks?'' when they can't remember that. That real-world data will help us understand and prevent the vast majority of those falls from ever happening in the first place. I want to give you a second example. This is a laptop-sized device. If you know much about Parkinson's disease, about 1.5 million people in United States with Parkinson's, costs us about $27 billion annually. The disease is incredibly variable. The fact that we are sending Parkinson's patients to a once- every-6-month visit to a doctor, who may or may not capture them, in that exam room for that 15 minutes, with an accurate assessment of how their tremor is really doing and how the disease is progressing, and then we will proceed to give them very expensive medications, that have terrible side effects, is almost unethical, especially when we can use simple technologies at home, where patients could do a series of activities, moving pegs back and forth and speaking into this device, to look at changes that are going on in their voice, and get a much more accurate trend about the disease progression. That's a game-changing, simple technology that could change how we treat Parkinson's today, and prevent a lot of overmedication, and a lot of expense and side effects and hospitalizations. This is work that we did with Andy Grove, the cofounder of Intel, who has Parkinson's, and his foundation. Very promising research. Those three words, ``very promising research,'' are what I would describe for the field right now. Not a lot of products, but lots of very promising research. I've spent 20 years doing social science research of aging-in-place technologies and e- care technologies. At Intel, where I have my day job, we have tested over two dozen in-home pilots, with seniors, of different technologies, like these two that you've seen today. We have lived with and observed 1,000 elderly households in 20 countries, understanding their needs and trying to figure out how e-care technologies could be used in ways that no one's imagining right now. We have funded well over 100 university grants in this area, out of Intel. We have helped to start several not-for-profits, including Continua, that I represent today, which is a not-for-profit advocacy group and standards organization, to make sure that these home-based technologies for e-care are interoperable, and are built on standards and advocate for these. The Continua is now 227 companies strong. That's the good news. The bad news is--I mean, my career is great. My research career is wonderful, and I'm very happy on that regard. Personally, I cannot use these technologies to help take care of my own aging parents, who live far across the country from me in North Carolina, because there are neither the incentives nor the infrastructure to allow their doctors to get this data and interact with them or with me in any compelling way. I can't use the own products and research that my own company is creating to help take care of my own parents. That's why I'm here today. Four big barriers, many of them I'm going to reiterate from things you've heard from other people today. The first is imagination. As I make Hill visits, most policymakers do not understand there's an imagination gap about what is available today already, and what is possible. If they have an imagination for e-care or telehealth or telemedicine, they mostly think about physician-to-physician video consultation, which is certainly part of it, but that's not--that's very different than a Parkinson's device that's helping to track your disease, or a simple wearable technology that may prevent the vast majority of falls. So, we need to do something to help policymakers and your colleagues understand what's possible and what's real today. There's also no agency--and 6 years later, this is the main thing I asked for 6 years ago--no one in Federal Government owns driving the e-care/telehealth agenda. No one owns putting together a national telehealth and e-care strategy. I've worked with the European Union, 10 years ago, and I've worked with nine European countries, who each have their own national strategy for e-care and telehealth to the home, for chronic disease management and independent living. But, we need a national coordinator for e-care, here in the United States, to get our act together and catch up with a lot of what the rest of the world is doing. I often call this the Y2K Plus 20 Commission, because by 2020 we've got a lot of baby boomers retiring, and we need the kind of energy and attention that the Y2K Commission brought, where we brought the private sector, government leaders, and not-for-profits- at an executive level- to own this agenda and move it forward quickly as a national infrastructure. So, imagination is the first. Second--we've talked about it already a little bit--are incentives. We pay for reactive medicine today. With few exceptions, we pay for sickness and injury care, not health; we pay for face-to-face visits. When I show these devices to clinicians and they work on our teams, they're, at first, skeptical of the technology, then they see what it can do, and they say, ``Oh my gosh. I can't treat patients without this data, because I'm flying blind in a once-a-year visit with them. I just hope that I actually have their paper chart or their electronic record in front of me.'' The kind of data that you have doesn't exist in a face-to-face encounter, because you're pulling real-world trend data. Then they have that moment where they say, ``But- I can't use any of this. There's all these reasons why I can't. The most fundamental is- I only get paid, and the whole system only works if you come into my office.'' So, incentives are certainly key to that, and we've heard a lot of that today. The third is investment. Our medical research dollars today in the United States are spent primarily on great drug therapy and diagnostics. We will spend--if you come back to my example with falls--we will spend tens of billions of dollars on the next great piece of hospital equipment, to look at even higher resolution of the bone break that you got from falling in your home, or of creating a new drug that may be incrementally better for painkillers once you've already broken your hip, but we will not spend tens of millions of dollars on interventions that may prevent 70 to 80 percent of falls from ever happening in the first place. That's completely backwards. There is no major funding bucket. My recommendation here is, the United States needs to match what the European Union invested, of 1 billion euros that they invested 3 years ago, into this area of e-care and independent living technologies for seniors. There's no major program at the National Institutes that own this. There are a few grants here and there. But, it's happening by accident, not by intentional strategy. The fourth is infrastructure. You've heard some about broadband today, and there are two kinds of infrastructure I want to close with. Technology infrastructure and broadband being key to that, but workforce infrastructure is the other key. Our infrastructure today is preparing professionals and professional places, clinicians and hospitals. It is not preparing consumers and home to be part of the care force that we need to do in the 21st century. So, one is, we need this next-generation broadband network. We need to make sure that the FCC's broadband plan, which we have to admit is one chapter of a large broadband plan, and is likely to dissipate if somebody does not watchdog this, many of the people who created this broadband plan are not going to be at the FCC in 4 months. So, I keep asking myself, how is this going to be implemented and carried through? Because the very brilliant people who created it will no longer be around. We've got to make sure we follow through and don't let this just be a chapter in the broadband plan, but there's an implementation plan to move this technology all the way to the home. The second is, we have to train--and this is what Europe is well ahead of us in doing--volunteers, family members, and e- care virtual workers, both professionally and clinically trained and nonclinically trained, to use these technologies and integrate it into workflow. It's not the technology alone; it's the technology plus the workforce. So, in conclusion, I'd say, global aging leaves us no choice but to invent these new care models. There is no scenario in which we're going to suddenly create enough doctors and nurses and bedspace to catch up with the age wave, or even to add the uninsured to the current system. We need to do for global aging and what I would call ``gray technologies'' here what we have done for global warming and green technologies. Invest in it. Catalyze it. Make sure that U.S.-based companies are going to catch up and compete with Europe in what's likely to be a large market opportunity. This will help us take care of our own demographic in aging population, as well as help give us an advantage to sell those capabilities to the rest of the world. Thank you. [The prepared statement of Mr. Dishman follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Senator Corker. Great testimony. Mr. Felder. STATEMENT OF ROBIN FELDER, PROFESSOR OF PATHOLOGY, ASSOCIATE DIRECTOR, CLINICAL CHEMISTRY, THE UNIVERSITY OF VIRGINIA SCHOOL OF MEDICINE, CHARLOTTESVILLE, VA Dr. Felder. Senator Corker and your colleagues in absentia, I thank you for the invitation for being invited to present here today. Today's testimony and the accompanying written statement will address how an expanded broadband infrastructure can result in dramatic cost savings, yet higher quality health and wellness in elders, and hopefully add to the well-published VA-system studies we heard about today. Broadband-based telemedicine has the potential to reduce the cost of medicine by well over 50 percent, stimulate economic growth in the medical technology sector, and raise the quality of life for seniors and all Americans to unprecedented levels. Since our elders will generate a high percentage of the estimated 4.2 trillion total annual economic burden of chronic disease by 2023, how is the United States going to deal with this enormous challenge? Advances in telemedicine, sensors communication, information technologies will enable distance-based healthcare that rivals hospital-based care; essentially, the hospital, without walls. In-home monitoring has the added benefits of measuring individualized health, as well as psychosocial status, and continuously reporting it to the individual, primary care providers, and caregivers alike. I don't think we've heard a lot about psychosocial support today. The benefits will include quicker and understandable wellness information and targeted preventative interventions. In-home monitoring may be the key solution that addresses efficient and effective means of care delivery to elders, while allowing them to age in their place of choice, particularly in rural health, which we've heard about earlier this morning. Health-monitoring home environments have been accomplished by wearable sensors and passive sensors embedded in the home environment. I'd like to emphasize that compliance is one of the major challenges with monitoring the elderly today such as getting them to strap on that wristwatch, place that device in their pocket. But, there is a new wave of passive sensing that, simply by existing in your home, you will be monitored for health conditions. For example, sensors embedded in a mattress pad can provide high-quality sleep assessments that rival sleep-lab assessments in hospitals. Continuous monitoring of vibrations in the floor can detect falls and classify them according to the best choice of first responders, either a 911, if it's a concussive fall, or a visit by a care provider that could help deal with falling issues such as stumbling followed by continuing ambulation. Tiny sensors worn in body orifices engineered, so these can be placed and remain for 6 months, can report glucose continuously to cell phones or to the home phone. In other words the elder does not have to be compliant, since there are no buttons to push and no instruction manuals to read. Deploying sensor-based telemedicine does not have to be costly. We conducted, in our group, a case-controlled study comparing monitored versus nonmonitored elders, passively, in a senior living facility in the Midwest over a 3-month period. Our studies demonstrated a 36-percent reduction in billable medical procedures, a 78-percent reduction in hospital days, and a 68-percent reduction in the cost of care. In addition to the reduced cost of care, the efficiency of the caregivers actually went up by 50 percent. So, not only did costs come down, but efficiencies went up for the caregivers. Thus, monitoring technologies can significantly reduced billable interventions, hospital days, and cost of care to payers, and has a positive impact on professional caregivers' efficiency. Medication compliance is also a significant challenge in the eldercare environment. In the near future, small pill- dispensing kiosks will dispense a wide range of medications at home that will facilitate finding the optimal doses that minimize side effects. These broadband-connected medication dispensers will allow the electronic medical record to be automatically updated with regard to medication compliance and efficacy. Nutritional support is often an overlooked factor in managing health and well-being in elders. Lack of proper nutrition can be a significant factor in hospital readmissions. Broadband-based in-home monitoring can determine if meals were delivered, if the elder consumed the meal, and if there are steady improvements in health as a result. Thus, automated nutrition support is one of the easiest challenges to solve and one of the most costly to ignore in the United States. In conclusion, broadband access with passive technologies will enable even those with little interest in their health to be encouraged to adopt healthy lifestyles. Delaying or arresting chronic disease, providing nutritional support, and assuring psychosocial well-being are some of the most proven benefits of home-based passive monitoring technologies. Finally, since home-based wellness results in costs that are 50 percent less than traditional care, it provides a basis for using broadband to revolutionize this Nation's healthcare system. Again, thank you for the invitation to address the committee. [The prepared statement of Dr. Felder follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Senator Corker. Well, Chairman--Senator Wyden, we have our last witness. I want you to know he is from the great State of Tennessee, and I've already introduced him, so I just wanted you to know I was handing back off to you. Senator Wyden [presiding]. I thank my colleague, and thank him very much for ably stepping in. I apologize to all the guests. In the Budget Committee, you're technically sort of there, and you can't be liberated until it ends. [Laughter.] So, I apologize to all our guests. I gather that we have a very thoughtful leader in the field from Tennessee, Mr. Kuebler. Please proceed. STATEMENT OF RICHARD KUEBLER, TELEHEALTH DEPARTMENT HEAD, UNIVERSITY OF TENNESSEE HEALTH SCIENCE CENTER, MEMPHIS, TN Mr. Kuebler. Good afternoon, Ranking Member Corker and Senator Wyden. Thank you for having me here today. I'm grateful for the opportunity to testify regarding aging in place and the associated healthcare technology which has such a significant impact on the quality and dignity with which our citizens receive healthcare. My name is Richard Kuebler, and I am responsible for the telehealth program at the University of Tennessee Health Science Center in Memphis. Our program is nearly 12 years old. It's one of the oldest programs in the country. I, personally, have worked within the telehealth environment for the last 10 years. We see telehealth, telemedicine or e-care work across a myriad of specialties. We use telehealth as a clinical delivery mechanism over distance. Telehealth can be as simple as remote glucometer monitoring or as complex as realtime diabetic retinopathy diagnosis. However, the results are the same. Telehealth as a delivery mechanism for healthcare works. We see a diverse scope of patients. Since Tennessee borders more States than any other State, our providers are able to see patients from any of the eight States bordering Tennessee. Patients see no discernible difference between the levels of care. One provider was actually stunned when, at the conclusion of a consult, the patient stood up to shake his hand, despite being 200 miles away. We've seen telehealth save lives, increase the quality of life, and treat chronic diseases across our State and our region. Telehealth specifically delivered remotely into the home has had a significant impact on health outcomes and cost savings. We, at UT, have the research outcomes that show home- based telehealth used on an at-risk population for congestive heart failure decreased hospital admissions by 80 percent. Hospital readmission rates were reduced by 85 percent, and, as a result, the cost per patient dropped from $10,000 to $2,500. Nationally, there are 5 million hospital stays per year for congestive heart failure, costing approximately $8 billion. The national implications of utilizing telehealth in this single specialty could reduce healthcare costs by $3.8 billion. At the University of Tennessee Health Science Center in Memphis, we've developed the only realtime diabetic retinopathy technology program in the world. Diabetes is an epidemic that affects 21 million of our citizens and 20 percent of Tennessee's population. An additional 7 and a half million people across the country have prediabetes. Diabetic retinopathy is the leading cause of blindness among adults in the industrialized world, and currently in the United States, 400,000 patients are screened for diabetic retinopathy each month. Traditionally, the screening is done as a store-and- forward, and the results are returned, taking as long as several days to a week. The patient then has to be rescheduled, and then the diagnosis delivered. Utilizing digital imaging and highly advanced computer algorithms, developed with Oak Ridge National Labs, we've been able to deliver those results within 90 seconds, drastically saving costs and increasing the efficiency of patient care. Now, there are associated costs with telehealth, not the least of which is connectivity. The FCC, as they mentioned earlier, has several programs which subsidize connectivity into rural and underserved areas, offsetting the cost of rural-based broadband by up to 85 percent. While existing home-monitoring technologies may not be bandwidth-intensive, the access of broadband at home can establish a platform for ancillary medical services, such as clinical videoconferencing, education, and medication management technologies. The expansion of wireless 4G technology or traditional land-based fiber optics will have significant impact on the level of care delivered to the home or the ``last mile.'' Successful business models for telehealth is direct contracting between the service providers, such as UT, the Health Science Center, and Managed Care Organizations. In the case of maternal fetal medicine and pediatric cardiology, providing blanket service for a regional population can provide cost capitation for the MCO while also covering the cost of delivering telehealth services into outlying or even metropolitan areas. However, the most significant barrier to adoption is reimbursement. In the previous real-world examples I gave you telehealth applications with both chronic heart failure and diabetic retinopathy, there is no reimbursement for providing these services. When left to altruism alone, there is little hope of a sustainable business model for telehealth or e-care. In most cases where telemedicine practices are reimbursed, it's done on a lower scale than a traditional brick-and-mortar patient encounter. So, if a provider is reimbursed two to three times as much for a traditional clinical encounter versus a telehealth encounter, which type of healthcare is incentivized? Telehealth is actually disincentivized for both providers and facilities in the current fee-for-service model. While reimbursement varies from State to State, the successes of telehealth implementation, from a billing standpoint, have been the inclusion of telehealth as a traditional method of care. Whether delivery of healthcare into the home or the extension of specialists into rural and underserved areas, there must be an equitable billing mechanism for telehealth to be sustainable. Currently, telehealth is reimbursed as an exception or a ``less than'' method of care delivery. States such as California and Missouri, they've incentivized the practice of telehealth by State Medicaid provisions, which reimburse equally for telehealth services which meet certain technical criteria. Telehealth should be viewed as an accepted level of care, versus an exception to the rule, from a reimbursement standpoint, whether delivering care into the home or treating a patient in a rural or metropolitan clinic. At UTHSC, in Memphis, we've seen the opportunity and radical improvement to healthcare that telehealth can afford. The implications can go far beyond the quality of life for our aging population, preventing hospital stays and nursing-home enrollments. The significant cost of healthcare for our aging population is undeniable, and we have demonstrated that the cost savings exist. Ultimately, a model must be created to ensure that telehealth-care providers are equitably reimbursed; otherwise, there's no incentive to change traditional delivery of care. Telehealth is not a panacea. Like any other form of healthcare practice, there is potential for abuse. However, the potential of healthcare possibilities is almost limitless in the ability to provide quality medical care over distance. Ranking Member Corker, Senator Wyden, thank you for the opportunity to speak with you about the incredible opportunity that faces us regarding advancing the level of healthcare in our State and our country. I am happy to answer any followup questions you may have. [The prepared statement of Mr. Kuebler follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Senator Wyden. Thank you very much. Senator Corker's been so wonderfully patient all afternoon. I think it's just appropriate he start the questions. Senator Corker. Well, I will, then. Thank you. I thank each of you for your testimony and your passion for this particular topic. I hope you don't have to come back in 6 years---- Mr. Dishman. I'm happy to---- Senator Corker [continuing]. For the same---- Mr. Dishman [continuing]. Come back---- Senator Corker [continuing]. Testimony, but---- Mr. Dishman [continuing]. Every 6 weeks, if that's what it takes. [Laughter.] Senator Corker. Mr. Kuebler, the last panel was asked, by Senator Collins, just about the whole issue of privacy. I thought I'd ask you the same. Are there concerns that exist, from your standpoint, as it relates to patient privacy, using this type of technology? Mr. Kuebler. Well, I think the ONC did a great job of addressing the different opportunities for improvement that there are. From a patient adoption perspective, it's been interesting, the fact that the technology becomes relatively transparent after initial adoption. Privacy is the largest obstacle from a patient's standpoint. Senator Corker. Privacy is what? Mr. Kuebler. Is probably the most significant obstacle, from a patient standpoint. But, our patient data shows that in the high 90's--97, 98 percent of patients are equally as satisfied with a tele-encounter versus a face-to-face encounter. Senator Corker. As a person who, obviously, has been highly involved--we look at what happens with supply, and all the various avenues that people have access to something does create greater demand, right? We want everybody in our country to have healthcare and access to good quality care. I know that we talk a little bit about the fact that this is much less expensive, obviously, on a per-visit type of situation. Some of the technologies can prevent other issues down the road that are more expensive. But, is there also a component of this--and I'm not trying to be negative--but, with tremendously expanding access to healthcare, through this type of technology, even though it's at a lesser cost and it sounds like data maybe presents better outcomes--is there also a situation that creates much, much, much larger demand down the road, as broadband becomes more available and as people become more accustomed--our culture becomes more accustomed to using this type of technology? What are some of the issues that come with that? Mr. Kuebler. Well, let me try and tackle that from a couple different directions. From the provider perspective, obviously the goal is to reduce the cost--but from the payer perspective the goal to reduce payments out, or costs. From the provider perspective, there's still an associated cost of doing business in order to be able support the additional medical services that are being provided. So, the goal would be some sort of blending of the two, with agreements that would be directly between the payers and the providers, to make sure that the cost of carrying the additional clinical load is also offset by the ultimate payments out that the payers are putting into the system. Senator Corker. Any other comments in that regard? Mr. Dishman. I mean, I'd say, in our experience--and we've tested this with thousands of seniors, in particular--often frail, who have never used PCs or technologies in themselves-- in their lives. If you think back to email, when we used to do surveys, at Intel, of people, about, ``Do you want email?'' People said, ``No.'' Because it was before everybody had email, they didn't quite understand what it was. When email started, everyone thought, ``Well, it'll replace the telephone. We'll never use the telephone again.'' What we now know is that email is a different way of interacting with each other. It didn't replace the telephone. We use telephone for certain things, and video conferencing for certain things, and email for certain things. These e-care visits are not just a replacement for a face- to-face visit. They're a different kind of visit. I can give you an example from, just last week, a study that we're doing with veterans. Veteran, 90-some years old, woke up and had a rash on his chin, on the side of his face, lives in a rural part of the country, out in eastern Oregon. Today, our system says, to get that checked out, the veteran even has--either just does nothing and sits on it until it gets worse or makes a pilgrimage to a clinic or a hospital, some distance away, and has to schedule a full exam with doctor to get it looked at. With e-care technologies, the notion of a quick, ``Hey, doc. Can you look at this?''--the answer is yes. The doc can do a quick look at this and say, ``Yup, you need to come in, or nope, I can treat you at home.'' So, what we're talking about is not replacing visits with e-visits. We're talking about adding e-visits as one of the tools that doctors can use, when medically appropriate, to mix up care. Because sometimes they need to go into the actual home of the patient, sometimes they need to bring them in, and more often than not they can do it virtually, especially if they have the data. That's been our experience in every study that we've ever done. Senator Corker. You mentioned the other experience you had had with other countries, and how nobody here owns getting this done. Obviously, it's not going to make much progress; you will be back every 6 years if that continues. Mr. Dishman. That's very true. Senator Corker. Can you tell us who you think should own-- which department of which Cabinet? I mean, what's the most logical place, here in the U.S. Government, for the central effort to take place. Second, you mentioned the other European countries that have done it very differently. Well, how do they compare, as far as adoption of this type of technology, to us? Mr. Dishman. The first question I have been thinking about this, and asking questions as I've been in D.C. this week. I think that--personally, what makes more sense to me is, the ONC, the Office of the National Coordinator, is trying to coordinate health IT across all of these groups. I think we need to add an administrator or an executive leader of the Office of National E-Care Coordination, and drive that e-care telehealth strategy. That would make--perfect sense. I mean the challenge that we have is, it's not just the technology. You've got to work on workforce issues, and broadband, and payment reform. So, we need a place to stand where you can coordinate across all these agencies, to tackle that. That would be my best guess, personally. To your second question, the EU, as a collective, and then European countries, in particular, have been focusing on three things. One is their broadband buildout, making sure that their specification for broadband is driven by e-care-use cases. My concern today, is that we are going to drive broadband to the rest of the Nation, but I'm not sure we're designing a pipe that's ready for where we're going, as a country, for e-care, where you can do the kind of ``always on'' secure data collection from the home; have your specialty-care doctor on a high-resolution video--this is happening in South Korea now-- where you've got the senior, the family member, the specialty- care doctor, and the primary-care doctor all on rich video at the same time. That's one of the broadband network in South Korea now, and doable. I'm not sure we're building a pipe that's ready for that. So, before we go dig up rural America and lay fiber, let's make sure that our specification's are going to enable that fundamental infrastructure. The second thing that Europe is working on is workforce. Knowing that they have to train family caregivers to be an active part of the care coordination team, and they've got to train nurses and clinicians on how to integrate e-care technologies into their workflow. They're ahead of us, because they've already developed curriculums for virtual telecare workers and saying, you know, ``What's the right mix of virtual visits for a doctor to do in a day, and in-clinic visits?'' and really starting to understand those kinds of things. The third is really funding the fundamental research. This is the billion euros that they put into what are called ``ambient assisted living.'' Our research, that we fund at Intel, the universities--the hundred university grants that were done, by and large those American researchers are now trying to collaborate and partner with overseas researchers, because there's no program here for them to go up and do larger-scale studies. That's what really worries me, as a citizen and as somebody in an American-based company. I don't want all that intellectual property and that energy and that know-how to, sort of, go overseas. Senator Corker. Well, thank all of you for your testimony. I look forward to pursuing this further. Senator Wyden, thank you. I'm--like you, I've got a 3:30 situation I've got to step to. But---- Senator Wyden. Thank---- Senator Corker [continuing]. We've had some great testimony. I want to thank you for your leadership on this issue. Senator Wyden. Thank you, again, for your patience. I know we're going to work together on it. This is one of those opportunities to get more value for the healthcare dollar. We have talked often about it. Let me pick up on this question that Senator Corker just started into with, really, all three of you, because I think you've got the alphabet soup of agencies. You've got the Center for Medicare and Medicaid Services, that's, you know, CMS. You've got FDA, the Food and Drug Administration. Clearly, the Federal Communications Commission works in communications. I just imagine trying, around here in the U.S. Senate, to watch this get spread far and wide through all of these various and sundry, you know, committees. I sit on the Finance Committee and the Budget Committee, which has a key role in Medicare, which has jurisdiction over the Department, you know, of Health so you can get into some of these issues. But, then you have to send all of this off to the Federal Communications Commission, because this has, clearly, a communications role. I think, for purposes of this afternoon and the lateness of the hour, one of the questions I'd like to ask all three of you is,--it seems to me that right at the heart of what needs to be done is to change this embedded, outdated reimbursement policy for these technologies. Do all three of you agree with that? Mr. Dishman, yes? Mr. Dishman. Absolutely. Senator Wyden. Felder, yes? Mr. Kuebler, yes? All right. The reason I believe its outdated is, it seems to me, by its very nature you've got to have video and audio. It's got to be at remote locations. I mean, it essentially precludes the very benefits that we'd like most to secure for older people, which is the opportunity to age at home. Is that right? Mr. Dishman. Absolutely. Senator Wyden. So, by way of starting this--and I said, on the Finance Committee, where at least we've got jurisdiction over the Department of Health and Human Services--strikes me, that's where you ought to start the revolution, to really start, you know, bold fashion, to get these products out on the playing field. Do the three of you agree with that? [All witnesses nodded in the affirmative.] Senator Wyden. OK. That, leaves the other question of, How do you take the array of alphabet soup agencies and in some way consolidate them so you can get these devices out there in something resembling a timely fashion? Because I see, for example, once we get over reforming this outdated standard, for purposes of Medicare reimbursement, you still have to run the gauntlet, particularly, say, at the Federal Communications Commission; we've got two health agencies involved, you know, under the auspices of the Department of Health and Human Services; and then, you've still got to go off and get into the communications area. So, do any of you have any thoughts about how you'd pull these three agencies together in something that would allow these products to be evaluated in a timely way? Mr. Dishman? Mr. Dishman. Well, I'd--in part say, go where the momentum already is. I mean, I've read the entire health reform bill, actually three times. It was hard, but I did it. Senator Wyden. I read it once. [Laughter.] Mr. Dishman. I've read it three times, because it took that long for me to be able to understand it. But, what I would say is, there wasn't a national strategy on e-care in the bill. But, I would say there are lots of places where there's momentum that we can build on top of. Those are, for me, medical home, accountable-care organizations; Independence at Home, your legislation. Those places create openings, because you're talking about paying for outcomes and putting coordinated-care teams together. We just want to make sure that those teams then have the option of experimenting with the different mixes of in-home, in-clinic, and virtual or e-care visits. I'd say, go where that momentum is. I don't think there's anything precluding us from doing that in those domains. I would say the comparative effectiveness money, we need to make sure we spend some of it comparing e-care to in-clinic care, and not to let all of that money go to just comparing traditional medical devices or pharmaceuticals. So, that would be the last piece--I'll reiterate what I said earlier--we need an executive owner whether it's at ONC or wherever the person is. If we don't have an executive owner who's driving this e- care and telehealth strategy, I don't think we will be continuing these hearings, 6 years from now, and 6 years after that. Senator Wyden. Mr. Felder? Dr. Felder. I'm a---- Senator Wyden. Mr. Kuebler? Dr. Felder [continuing]. Great believer in free enterprise, as evidenced by the explosion of iPhone apps that are medically related. I think what we need to do is just make sure we don't have FDA and others impeding consumer-demand, government expenditures aren't necessary. There is going to be tremendous consumer pull in this area. So, I think the two are going to meet in the middle, but I would venture that the private enterprise approach is going to quickly overtake and swamp out any government initiative in this area. Senator Wyden. Well, I share that view. One of the reasons I want something along the lines of a one-stop process for evaluating these devices and getting them out on the playing field is that I think the genius of the free enterprise system could be impeded because you've got all of the agencies strewn all over Washington with a hand in all this. What Mr. Dishman said is, he'd like to have the health agencies, in effect, take the lead, because that's where the expertise is, and that's certainly going to be part of the debate. But, to realize the genius that Mr. Felder has talked about is--I think you've got to have a one-stop process for getting these products evaluated, balancing the various interests, be it, safety and cost-effectiveness and hard data, on quality, the various interests that we've been talking about all afternoon. Mr. Kuebler, did you want to add anything? Mr. Kuebler. I'd just like to concur with Mr. Felder and Mr. Dishman. Senator Wyden. All right. Let's talk about something else that I think is going to be somewhat of a challenge in this area, and that is that we've all come to love our iPhone applications. We have these-- staggering array of, iPhone applications. But, sometimes I wonder about the implications of somebody reading a restaurant review on Yelp that somebody's e-care data, in effect, then is lost in an Internet traffic jam. I think that we continue to have real challenges with respect to access of essential services. Is it appropriate for the Congress or the Federal Communications Commission to start thinking about priority access in this area of e-care? I mean, in effect, an HOV lane for e-care data for wireless broadband. I come to this having thought a fair amount about it, and I haven't really reached any judgments about how you'd want to do it, but, at some point, Americans are going to ask some questions about whether everybody ought to be reading movie reviews, when somebody who needs, for example, emergency services gets caught in a Internet traffic jam. Any thoughts on this? Talk about trying to balance issues relating to the role of the private sector and the public interest. I think this is right at that intersection. Mr. Felder? I would just go right down the row. Mr. Kuebler? Mr. Kuebler. I think we saw earlier, with some of the burps and hiccups with the video conferencing, some of the issues that can be plagued by going over commodity Internet. So, this--whether you call it a HOV lane or a ``quality of service'' lane, would certainly scale. That is one of the issues, especially in live consults---- Senator Wyden. You'd be for it. Mr. Kuebler. I think it's---- Senator Wyden. You'd be---- Mr. Kuebler [continuing]. Definitely---- Senator Wyden [continuing]. For the---- Mr. Kuebler [continuing]. Something that's worth exploring. Senator Wyden. Yeah. Mr. Felder. Dr. Felder. I'm not sure of the exact infrastructure, but a stable and secure Internet is something we certainly don't have right now, particularly stability. It goes in and out, as we've just seen. Mr. Dishman. I agree, in two ways. There's a practical near-term and a long-term. The near-term is, we need to explore the possibility of accelerating access to people for broadband in today's marketplace for health purposes. If you're coming out of a hospital discharge situation, and you need a broadband-connected telehealth solution to help you recover for that first 30 days, so you don't get a hospital admission, but it takes 45 days for you to stand in line to get the broadband provider to come out and hook it up to your house, then we've got a problem. Longer term, Senator Wyden, I think you're right onto something. We need to be exploring use cases for the technology--lets say, you know, heart rate data for a critical patient needs to be extra sure it gets there well ahead of something like a recipe being exchanged. I'm not an engineering expert, but we need the experts to think through those problems and solve them. Senator Wyden. Mr. Dishman, as you know, I authored the provision in the health reform law, promoting Independence at Home, in effect, launching a variety of programs to address the needs of the highest-cost folks on Medicare, the folks with multiple chronic conditions. You would use a house call team approach. Those that participate in this, the Independence at Home providers, are required to achieve minimum savings of 5 percent, and to show that they can achieve these savings. It seems to me that e-care is a very good way to prove this. I think it's also a good way to get at this issue, that Senator Collins apparently talked about in my absence, that older people are going to say, ``I don't know so much about these products. I'd like to know more about them.'' It would seem to me that the Independence at Home providers would be a natural way to get older people, who chose to do it, comfortable with the products and devices, and be in a position to use them. So, I think this is kind of a twofer. It gets you launched with Independence at Home, and it also gets at something of an educational effort that's going to have to be part of any e- care program. What are your thoughts? Let me thank you. I consider you sort of one of the godfathers of the Independence at Home effort, since you and many you work with have educated me and our staff on it. I think it's almost an appropriate way to wrap up, because, you know, Independence at Home, in my view, is going to be a significant part of Medicare's future. I mean, if you look at the fact that a substantial number of Medicare patients on any, you know, given day are going to require these kinds of services--and here's an opportunity to really target savings, because we know that there is great opportunities to move away from the model where they have to come to the office--this is the future. So, close, if you would, with an assessment of what Independence at Home can achieve, using e-care. Mr. Dishman. I think an e-care-enabled Independence at Home strategy is the essence of what our health reform is supposed to be doing. My only complaint about Independence at Home is that the Secretary has the option of waiting until 2012 to implement it. I believe there are 60 or 70 organizations across the United States today who are ready and can go do Independence at Home now. Their big challenge is, they can't scale, because they were not going to have enough staff, and they're going to have to use e-care to help them do, themselves. Intel and Continua have been supporters of Independence at Home since day one. A technologized capability brought to that is key. I say we can actually look to the VA here, as well. If you think about the home-based primary-care program that the VA uses to care for seniors with many chronic diseases, who would otherwise be in a nursing home or in a hospital, but in their own home, and you think about the work that's a separate program at the VA, on telehealth, the merger of those two is what we're talking about with Independence at Home. I'm eager to start working to make that a reality, and not wait til 2012 to do that. Senator Wyden. Well, don't completely despair. One of my favorite aspects of the legal consequences of legislation is that no current Congress can bind future Congresses. Let's go out there and show that we can get Independence at Home more accessible and more quickly than people, this year, thought. This isn't going to be the only provision that is going to be sped up. I look forward to working with you on it. Mr. Felder and Mr. Kuebler, anything else you'd like to add? Further thoughts? [The two witnesses shook their heads in the negative.] Senator Wyden. Thank all of you for your patience, again. My apologies. We're going to be working very closely with you. This is an exciting topic. Obviously, you all are on the cutting edge, with so many of these devices, and innovative thinking for innovative products, and we look forward to working with you. With that, the Committee on Aging is adjourned. [Whereupon, at 3:48 p.m., the hearing was adjourned.] A P P E N D I X ---------- Mr. Dishman's Responses to Senator Kohl's Questions Question. I have heard you speak about the many benefits of using health care technology in the home. Are there any disadvantages to using this type of technology for patients and their family members? Answer. Although remote patient monitoring consistently shows improvements in health outcomes, reduction in hospital admissions and length of stay, issues of implementation can occur around four primary categories: 1. Device or instrument calibration, 2. Untrained use of the devices 3. Unauthorized users 4. Lack of personal contact Calibration Although the calibration activity is typically managed as a factor for FDA 510(k) clearance, the devices can and should go through a routine calibration schedule recommended by the manufacturer. (Some may require more stringent settings and some are designed specifically for rugged consumer use and may never need recalibration.) The schedule and need for calibration, or other maintenance, is determined by the manufacturer. This can be a challenge for the patients using the vital sign capture technologies to follow all the manufacturers' guidelines for calibration of their home use devices. The risk of a system not properly transmitting data to clinicians may create not only misinformation that the clinician may use in diagnosis and treatment, but also create a false sense of security by the patients. Training Untrained user issues are also typically handled by the FDA 510(k) clearance process for user design and actual use parameters. Once again, the devices are designed for this purpose in field use and must also be designed with an appropriate user interface for the intended user, taking into account the environment where it will be used, a user's physical limitations and the user's familiarity with technology. For example the blood pressure measurement, asking a patient to push one button to turn on a device and again to do the measurement creates unnecessary complexity for what is essentially a simple measurement. Where it becomes very complex or difficult for the patient is with multi-use instruments with several buttons to push and sometimes several cables to connect or disconnect from the telehealth device. Designing and delivering the correct UI design is essential and required by the FDA. The system may demand that caregivers, already overburdened, also provide technical support. Patients living alone without caregivers might not be able to use a sophisticated system on their own. Thus, the people who need it the most may not be able to benefit or may underutilize the features. They may, for example, not know how to activate a system to report questions at times outside of scheduled health sessions on the system. It is possible that in the course of reporting a symptom on a survey, patients won't be able to provide related symptoms or contextual factors that could come up in conversation with a clinician. This could potentially lead a clinician to overlook a more unique health condition. Unauthorized users In the home setting, one cannot always control who uses the system, particularly when curious family members would like to use the vital sign devices to check their own measurements. Allowing access to devices by children or others can be disruptive to the patients or to the clinician who may be receiving data that is not from the patient. Additionally, using a community device where more than one person inputs data has the potential to be confusing if the data somehow is not clearly tagged to an individual reporter. Several devices already have the capability to manage more than one user which requires effective training to ensure proper use. We are also designing security standards into the guidelines to ensure we have the right person identified, which becomes critical when devices are intended to be shared in multiple locations: work cafeteria, remote clinics, shared facilities, etc. This escalates the importance for secure identification. Lack of personal contact The lack of physical contact with the patient was raised as a disadvantage in one study (Sandberg et al. 2009), and may also be an issue for patients. Sandberg J, Trief PM, Izquierdo R, Goland R, Morin PC, Palmas W, Larson CD, Strait JG, Shea S, and Weinstock RS. A qualitative study of the experiences and satisfaction of direct telemedicine providers in diabetes case management. Telemed J E Health 2009; 15(8): 742-50. Question. What types of training currently exists to teach family caregivers how to deliver complex care using health IT? How successful are these training programs? Answer. The Veterans Administration (VA), which has the largest deployment of remote patient monitoring devices, attributes much of the program's success to the extensive training programs enacted for clinicians, patients and caregivers. Three training centers have been established with discreet responsibility for the major division within the VA for Telehealth: The Rocky Mountain Telehealth Training Center provides training and support to staff involved in the delivery of general-telehealth services, enabling real time telehealth through a telecommunications link. This link allows for instantaneous interaction via video conferencing between the patient and the provider or even between two providers regarding a single patient. Care Coordination Home telehealth training is provided by the Sunshine Telehealth Training Center to provide best practices for communicating health status, and capture and transmittal of biometric data. Care Coordination Store and Forward (S&F) Telehealth training is conducted in the Boston S&F Telehealth Training Center for video, audio and clinical data transmitted to a medical facility. ``Training center curricula are standardized and we emphasize virtual training whenever practical and possible. The three VA telehealth training centers have enabled over 6,000 staff to be trained and have helped sustain a rapid pace of telehealth expansion that makes the VA a recognized national leader in the field of telehealth. The VA has also implemented an internal system to assess the quality and consistency of its telehealth programs at a VISN level that is conducted in each VISN biannually.'' Adam Darkins, MD, Chef Consultant, Care Coordination, Office of Patient Care Services, Veterans Health Administration, Senate Committee on Veterans' Affairs, February 26, 2009 Each mode of telehealth has its own training center, though most staff training takes place over the network. ``The VA has an employee education system,'' Darkins explains. This system provides content and dedicated training to 18,000 computer desktops throughout VHA institutions. There are satellite broadcasts across this network every two months and an annual virtual conference, as well as specialised training for services like telehealth as needed. Last year, the VA trained 1,600 staff for home telehealth, 96% of whom received their training remotely over the agency's vast electronic infrastructure. More than 1,000 employees have been trained on the clinical videoconferencing equipment, 90% of them remotely. Adam Darkins, eHealth Europe, October 12, 2009 Caregiver training through telecommunications and web-based education Training the caregiver through technology is illustrated by the work of Dr. Carol E .Smith, RN, PhD. Her program of research emphasizes practical, cost-effective methods designed to reach family caregivers of diverse ages, education, income, and geographic residence. Her research has demonstrated that relatively low cost technologies can be used effectively to reach and support informal caregivers across all social economic status and age groups from rural and inner city locations. Additionally, one of Smith's family caregiving interactive websites was selected for the International Nursing Scholar's Society Pinnacle Award for excellence in computer- based public health education. The current clinical trial website tests ``virtual nurse caring'' to determine what aspects of nursing can be safely conducted through the internet. http://reporting.journalism.ku.edu/fall06/fred- musser/2006/10/real--time--with--virtual--nurses.html A second example is reported in Telecommunications Technology as an Aid to Family Caregivers of Persons With Dementia by Sara J. Czaja, PhD and Mark P. Rubert, PhD, Department of Psychiatry and Behavioral Sciences, University of Miami School of Medicine, Miami, Florida. (Psychosomatic Medicine 2002; 64:469-476). The results of this study demonstrate how current information and communication technologies can be used to help caregivers meet the challenges of caregiving and improve the quality of life for caregivers. The data reported are based on responses to the usability questionnaire at 6 months from a sample of 44 caregivers. Overall the results indicate that the system is easy to use and the caregivers find it valuable. The most common reason that the caregivers use the system is to communicate with other caregivers, especially those who are not nearby. The caregivers, especially the Cuban Americans, reported that the system facilitated their ability to communicate with family members and their therapist. The caregivers also indicated that they found participation in the ``online discussion'' groups to be very valuable and also found the ``online resource guide'' useful. A third example is found in the work of from a study reported in The Journal of Applied Gerontology 2010, doi:10.1177/0733464810366564), April 7, 2010 in which a small control group 169 patients, evaluated the acceptability and feasibility of telehealth videoconferencing for pre-clinic assessment and follow-up in an interprofessional memory clinic for rural and remote seniors. Patients and caregivers are seen via telehealth prior to the in-person clinic and followed up at 6 weeks, 12 weeks, 6 months, 1 year, and yearly. On average, telehealth appointments reduce participants' travel by 426 km per round trip. Findings show that telehealth coordinators rated 85% of patients and 92% of caregivers as comfortable or very comfortable during telehealth. Satisfaction scales completed by patient-caregiver dyads show high satisfaction with telehealth. Follow-up questionnaires reveal similar satisfaction with telehealth and in-person appointments, but telehealth is rated as significantly more convenient. Predictors of discontinuing follow-up are greater distance to telehealth, old-age patient, lower telehealth satisfaction, and lower caregiver burden. ------ Dr. Robin A. Felder Response to Senator Kohl's Question Question. Can you give us an idea of how much some of the in-home health monitoring devices you mentioned cost for families? Answer. Costs are currently varying widely for eldercare monitoring technologies. For example equipment installation costs are between $200 and $2,000. Monthly monitoring fees vary between $50 and $100. Some of this variance is related to the extent of the issues that are monitored and the degree of interventions that are provided. Market pressures will undoubtedly bring these costs down closer to $250 for basic monitoring equipment and under $100 a month for monitoring services. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]