IBM Datacap buy is a health care play

By | August 11, 2010, 7:35am PDT

Summary: Datacap will be able to integrate with IBM’s FileNet into a complete library acquisition strategy.

The biggest problem many clinics and hospitals have with health IT is what to do with their old paper records.

The standard protocol is to keep the paper files around for months, until all patients have been seen, input current values into an electronic record, then file the paper. (Edited screen capture from Datacap.com.)

So what happens if one of these patients has to go into the hospital? You either send along the paper file or you have incomplete records. And then there’s the doctor’s handwriting to contend with.

What often happens is the hospital opens its own electronic file. Those tests you took a few years ago may all have to be repeated. Your primary care doctor’s knowledge of you may be lost.

Or what happens when an insurer questions a payment? Right now we may not get to argue about it until we get to court, when the original from the doctor’s file is entered into evidence.

IBM wants to cure that through its purchase of Datacap. Datacap, based in Tarrytown, NY, just 23 miles from Armonk (12 miles if you prefer the scenic route on Saw Mill Parkway) is already sporting the IBM logo on its Web site.

Datacap will be able to integrate with IBM’s FileNet into a complete library acquisition strategy. Among its existing health care customers are Blue Cross of Arizona and the Chicago Department of Public Health. It has a presence on both the seller and buyer sides of health care.

For a hospital associated with medical clinics, this means IBM can now take the clinic’s old files, once new files have been started on most patients, and automate the back catalog. For insurers, they can now take those files as-needed, when doctors want to justify expenses.

It almost goes without saying that this is another example of the big trend we noted some weeks ago — mainline computing vendors getting into the health IT market, surrounding it, eventually gobbling it up.

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Disclosure

Dana Blankenhorn

Dana Blankenhorn has been a journalist, writer and part-time futurist for over 30 years. At the present moment I run only a personal blog in addition to my ZDNet open source blog. DanaBlankenhorn.Com has the subtitle The War Against Oil. In the past I have used it to write about political history, e-commerce, personal matters, some ideas related to open source, and The World of Always On, which is the idea of using sensors, motes and RFID to turn WiFi links into platforms for applications which live in the air. My IRA account at Schwab holds a few tech shares, most notably some Intel and Applied Materials, but there are no open source companies in it. I don’t even own any CBS stock.

Biography

Dana Blankenhorn

Dana Blankenhorn has been a business journalist since 1978, and has covered technology since 1982. He launched the Interactive Age Daily, the first daily coverage of the Internet to launch with a magazine, in September 1994.
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RE: IBM Datacap buy is a health care play
DanaBlankenhorn 11th Aug 2010
@cornpie In the piece I noted hospitals and insurance companies as the primary buyers. I think the hospitals will use it to bring their clinics more fully into their systems. And I think prices will become more competitive.
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Have you checked out the prices for Filenet licensing lately? Yes, it probably works great if you are Bluecross, but can my local GP afford it? And if they can, will the hospital be using it too?
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RE: IBM Datacap buy is a health care play
DanaBlankenhorn 11th Aug 2010
@cornpie In the piece I noted hospitals and insurance companies as the primary buyers. I think the hospitals will use it to bring their clinics more fully into their systems. And I think prices will become more competitive.

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