San Jose, CA – Joint Venture: Silicon Valley Network (JVSVN) and three Silicon Valley hospitals announced today the formation of an administrative data exchange network that will significantly reduce the cost of claims processing for participants. The network, a project of Joint Venture’s Smart Health initiative, will begin operation in 2007.
Initial participants in the network include El Camino Hospital, Lucile Packard Children’s Hospital, and Stanford Hospital & Clinics. Each organization will contribute $50,000 to the startup cost of the network, and pay an additional annual membership fee to the nonprofit network to cover the cost of claims transmission. This cost will replace the per-transaction fee currently paid by healthcare providers and insurance carriers. Large healthcare providers can process millions of claims transactions each year. Smart Health expects that several more providers and insurance carriers will become members over the next few months.
Smart Health is currently evaluating bids from potential vendors for the network, which will accept claims data from participants and transmit it in appropriate format to each health insurance carrier. Hospitals, physicians, and insurance plans will benefit from the network.
“This type of collaborative activity is a hallmark of Joint Venture,” said Russell Hancock, JVSVN CEO. Smart Health has brought all the necessary players together – health care providers, employers, and health plans. When you have organizations with conflicting goals and incentives sitting around the table, finding projects where everyone raises their hand and says, ‘This makes sense for me’ is difficult. This project is a win for everyone.”
“Our ultimate vision is a unified electronic patient record that is available to doctor and patient anywhere, anytime” said Chris Dawes, CEO of Lucile Packard Children’s Hospital. “This requires collaboration among competitors, and this network takes us down the path toward that goal.”
“This is a great step for Smart Health,” said Kevin Tabb, Chief Medical Information Officer and Chief Quality Officer for Stanford Hospital & Clinics. “As we become more sophisticated in exchanging data, we can improve the quality of care for everyone.”
“Building a culture of collaboration is a key step in establishing a broad regional health care network,” said Kenneth Graham, CEO of El Camino Hospital.
“We are already looking at ways to extend the network to provide additional functionality,” said David Katz, Executive Director of Joint Venture’s Smart Health. “We believe we can make the business of healthcare much more efficient and less costly for everyone – patients, doctors, hospitals, employers, and health plans. We are also looking at applications like electronic medication management, which can lower cost as well as reduce medical errors.”
About Joint Venture: Silicon Valley Network
Established in 1993, Joint Venture provides analysis and action on issues affecting the Silicon Valley economy and quality of life. The organization brings together established and emerging leaders—from business, government, academia, labor and the broader community—to spotlight issues, launch projects and work toward innovative solutions.
About El Camino Hospital
Located on a 41-acre campus in the heart of Silicon Valley, El Camino Hospital serves residents in the El Camino Hospital District -- Mountain View, Los Altos, Los Altos Hills, and portions of Sunnyvale and Palo Alto - as well as those in surrounding communities. Established in 1961, the hospital has delivered the highest level of medical services to the community for more than four decades. El Camino Hospital is the only hospital in the Bay Area and one of only six in California that has been designated as a nursing magnet hospital by the American Nursing Credentialing Center. Its quality programs and high customer satisfaction rankings have been recognized locally and nationally. Specialties include cardiac care, dialysis, cancer care, maternal child health services, orthopedics, neurosurgery and behavioral health. The hospital is also recognized as a national leader in the use of health information technology to promote patient safety, including barcoding, computerized order entry, electronic medical records and wireless communications.
About Lucile Packard Children’s Hospital
Ranked annually as one of the best pediatric hospitals in the nation by U.S.News & World Report, Lucile Packard Children's Hospital at Stanford is a 264-bed hospital devoted to the care of children and expectant mothers. Providing pediatric and obstetric medical and surgical services and associated with the Stanford University School of Medicine, Packard Children's offers patients locally, regionally and nationally the full range of health care programs and services — from preventive and routine care to the diagnosis and treatment of serious illness and injury. For more information, visit www.lpch.org.
About Stanford Hospital & Clinics
Stanford Hospital & Clinics is known worldwide for advanced patient care provided by its physicians and staff, particularly for the treatment of rare, complex disorders. Learn more at www.stanfordhospital.com