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Pallone Statement at Health Markup of Health Information Technology Bill

June 25, 2008

Washington, D.C. --- U.S. Rep. Frank Pallone, Jr. (D-NJ), Chairman of the House Energy and Commerce Subcommittee on Health, issued the following opening statement this morning at a subcommittee markup of H.R. 6357, the Protecting Records, Optimizing Treatment, and Easing Communication (PRO(TECH)T) Act of 2008. This legislation is designed to strengthen the quality of health care and reduce medical errors and costs by encouraging the adoption of Health Information Technology (HIT).

The New Jersey congressman introduced the bipartisan legislation yesterday with U.S. Reps. John Dingell (D-MI), Chairman of the House Energy and Commerce Committee, Joe Barton (R-TX), ranking Republican of the House Energy and Commerce Committee, and Nathan Deal (R-NC), ranking Republican of the House Energy and Commerce Subcommittee on Health.

"Good morning. Today the Subcommittee is meeting to mark up the Protecting Records, Optimizing Treatment, and Easing Communication (PRO(TECH)T) Act of 2008.

"Just yesterday, the New York Times editorialized about the disturbing rate at which providers have adopted electronic health records. They go on to say that, 'if this country does not accelerate the conversion from paper to modern technologies, many of the gauzy promises of health care reform made by politicians and health planners will become irrelevant.'

"Modernizing our health care system and moving into an electronic era is part of a national conversation that is occurring well beyond the editorial page of the New York Times. Politicians of both political parties, providers, and patients all agree that HIT holds tremendous promise for improving the performance of our health care system in a way that will increase access, enhance quality and lower costs.

"But we are still a long ways away from achieving the potential that HIT holds. According to a new survey published in the New England Journal of Medicine, only 4 percent of U.S. physicians use comprehensive systems of electronic health records that include key patient safety features, such as prompts when a medication may react badly with another drug the patient is already taking.

"For those doctors who have taken the steps to implement such systems, they say it has revolutionized their medical practices and transformed care. These systems have helped reduce medical errors, assisted with clinical decision making, and improved communication between providers and patients.

"But far too many physicians are unable to take up this technology. For many doctors, the cost of moving to an electronic system is prohibitively expensive. According to most research, an electronic system could cost between $40,000 and $50,000 to implement, with additional yearly costs for technology support.

"The financial barriers are not the only problem. Many doctors are also concerned about making an investment in a system that may be obsolete because it cannot communicate with other providers or does not meet certain technology standards.

"For all of these reasons, we need strong leadership at the national level to improve the implementation and use of health information technology. The bill we are marking up today would accomplish this goal.

"Under the PRO(TECH)T Act of 2008, we establish a process that would help facilitate the secure exchange of health information. Key to this process is the adoption of policies and technical standards necessary for the development of a nationwide HIT infrastructure.

"The PRO(TECH)T Act also includes important provisions to help finance the adoption of HIT. Competitive grants and low-interest loans will be made available to help providers purchase and use HIT systems, with a preference for small health care providers; providers in medically underserved areas; and others that have difficulty in acquiring HIT on their own.

"But this legislation is not just about moving doctors away from a pen and paper system, it is also about protecting patient privacy. Protecting patient information, which is the most sensitive information about a person, has to be a priority as we attempt to facilitate the flow and exchange of personal health data.

"I can say with great confidence that protecting patient privacy is a significant concern to all the members of this Committee, Democrats and Republicans alike. To that end, we have been working hard to incorporate strong provisions in this legislation that will keep sensitive patient information both private and secure.

"In the end, we need to move forward with modernizing our nation’s health care system. Investing in HIT today will help make our system more efficient tomorrow, thereby lowering costs and saving more lives.

"I want to thank my colleagues who have worked so diligently on the development of this draft. Particularly, I want to recognize the work of Chairman Dingell, Ranking Member Barton and Ranking Member Deal, as well as their staffs. Thanks to their efforts, we are finally moving forward with a bipartisan bill that will move our nation’s health care system into the modern era.

"I also would like to recognize the efforts of Representatives Waxman, Markey, Towns, Gordon, Eshoo, Capps, Gonzalez and Rogers, all of whom have been instrumental in the development of this bill. I now recognize Ranking Member Deal for five minutes for the purpose of making an opening statement."