THE PRESIDENT: Thanks a lot. Thanks for coming. Please be seated.
Thanks for the hospitality. I'm really pleased to be here in the
great city of Baltimore. Governor, I'm proud you're here. Thanks for
greeting us at the airport -- I mean, at the heliport. Thanks for
bringing the First Lady. Thanks for bringing the Lieutenant
Governor, as well. I'm proud you all are here. (Applause.)
I'm also proud to be with -- in
the presence of a man I still call governor, Governor Schaefer. I'm
proud you're here, Governor. (Applause.) He said he didn't care a
whit about seeing me, he just wanted to make sure I gave his best to
mother. (Laughter.) Still a plain-spoken fellow, aren't you? But,
Governor, thanks, you're doing a great job for the state of
Maryland. Congratulations on the newest Ehrlich. (Applause.)
Dutch Ruppersberger is with us today. Congressman, where are you?
Oh, thanks for coming. Listen, I'm -- here's the thing about the
congressman -- he cares deeply about the people who wear the
nation's uniform. He's very much involved with programs to kind of
lighten the load for our troops who are sacrificing and are working
for a free world. Dutch, I'm proud of the job you've done. I know
you've recently received the USO Merit Award. Well deserved, and
congratulations. Thank you for doing that. (Applause.)
I want to thank George Owings and Larry Kimble, who are Veterans
Affairs folks here for the state of Maryland. One is incoming, one
is outgoing; both care deeply about the veterans of this state. I
appreciate so very much Nelson Sabatini, who is Department of Health
and Human Services here in Maryland, for caring about the health
delivery systems of your state.
We're going to talk about some interesting opportunities today
for our health care system to be modern, to deliver -- help it
deliver quality service at lower cost. This is going to be -- I
think you'll find it an interesting dialogue. I'm certainly looking
forward to it.
Before we begin, though, I want to thank the people who work here
at this hospital, work for the VA. I appreciate your service to our
country. I appreciate your care for those who have worn the nation's
uniform. I see we've got folks here who have worn and are wearing
the nation's uniform. For those who have worn the nation's uniform,
thank you for setting such a good example for the brave men and
women. (Applause.) For those who are wearing the nation's uniform, I
appreciate so very much your service.
We're changing the world. We have an obligation and a duty to
protect our country. And in so doing, we're changing the world for
the better. We understand that freedom is the deepest need of every
human heart, and that free societies are peaceful societies. And a
peaceful society in the heart of a region that has fostered terror
and hatred is in our short-term and long-term interest. And for
those who wear the uniform, thanks for what you're doing. You have
stepped up at this historic time. And the country is more secure for
it, and the world will be more peaceful for your service.
(Applause.)
Yesterday, I talked about ways
for us to make sure America stays on the -- stays a leader in the
world, particularly when it comes to technology and innovation.
That's what we want. We want to lead. We're not interested in
following. America is a nation where the entrepreneurial spirit is
strong, where the focus of the government, in my judgment, is right.
We're willing to spend research money. I see Elias Zerhouni is with
us, who's head of the NIH. Elias, thanks for coming. I'm confident
that when you spend research money at the NIH, we're laying the
groundwork for what will be a better tomorrow.
Yesterday, I talked about energy. One way for us to stay on the
leading edge of an innovative society is to introduce ideas like a
hydrogen-powered automobile, put money behind it and research behind
it so someday, Governor, we're able to drive around with water as
the bi-product as opposed to that which is currently coming out of
the tail pipes in America. It'll make us less dependent on foreign
sources of energy when this technology comes to be, which is vital
to make sure America is on the leading edge of technology and
innovation. It'll help improve the environment.
I talked about the need for us to spread broadband technology
throughout our entire society if we want to stay competitive and
innovative, that we've got to have broadband in every household in
America by the year 2007. And there's way to do that with the
government having to provide all the capital. We ought not to tax
access to broadband. If you want something to flourish, don't tax
it. (Applause.)
As well, we've got to make sure that regulatory policy in
Washington is conducive for the spread of broadband. For example,
one of the things that's probably going to need to be done is they
need to build towers on federal lands in order for over-the-air
internet services to work out into the remote regions of our
country. They don't need a bunch of paperwork and hassle in order to
build a tower on federal land. There's a lot of things we can do to
reduce the bureaucratic hurdles necessary to make sure that
broadband is plentiful. And not only plentiful, but there's
competition so that you get better quality and better price.
But today we're going to talk about a third avenue, that's to
make sure America is innovative and is a leader in the world. And
that is how to make sure our health care system works better. And
there are some fantastic ideas as to how to do that.
The way I like to kind of try to
describe health care is, on the research side, we're the best. We're
coming up with more innovative ways to save lives and to treat
patients. But when you think about the provider's side, we're kind
of still in the buggy era. I told a story yesterday of a guy in
Kalamazoo, Michigan. His young daughter has a case of leukemia, and
he had to -- she had to see a lot of specialists. But he had to
carry her files around every time she saw a specialist, in order to
expedite care to make sure she was getting the best care.
And the health care industry is missing an opportunity, if
patients, in order to make sure they get quality care, have to carry
files from one specialist to the next. It's like IT, Information
Technology, hasn't shown up in health care yet. But it has in one
place, in one department, as you're about to hear, and that's the
Veterans Department. (Applause.)
So here's what we're here to talk about. We're here to talk about
how to make sure the government helps the health care industry
become modern in order to enhance the quality of service, in order
to reduce the cost of medicine, in order to make sure the patients,
the customer is the center of the health care decision-making
process.
And we've made great progress. There's a role for the federal
government. One thing is the federal government has got to make sure
the privacy rules are strong. You're going to hear us talk about
medical -- electronic medical records. And that's exciting. But it's
not so exciting if you're a patient who thinks somebody could snoop
on your records, to put it bluntly. I'm not interested in having my
-- well, it's too late for me. (Laughter.) My medical records are
pretty well known.
But for those people -- there's a lot of people in America who
say, good, I want there to be good information technology in the
health care field, I just don't want somebody looking at my records
unless I give them permission to do so.
And I fully understand that. And your records are private, if
that's the way you want them to be. But there's a way to address
this, the privacy issue. And there's a way to make sure that the
federal government's role is helpful in expanding information
technology. And that's what we're going to talk about.
Tommy Thompson is the head of the -- the Secretary of Health and
Human Services -- is a strong advocate about the spread of IT
throughout the health care industry. I think he's got -- I know he's
got the proper perspective of the role of the federal government in
encouraging not only the federal agencies, but the private sector,
to adopt these strategies in a way that is positive for the American
consumer and cost beneficial for society.
You hear him talk about standards. I told him when he starts
talking about standards, make sure it's the kind of language we all
understand. See, that's part of the problem. The medical terminology
is really different from English, and is different from one office
to the next. And so when Tommy is talking about standards, I think
he'll help you understand how we can help with standards.
At any rate, we're doing some smart things at the federal
government, and the federal government can lead because we're
spending a lot of money in health care. We're a large consumer on
behalf of the American people. Think about it -- Medicare, Medicaid,
veterans' benefits, federal employee health insurance plans, I mean,
there's a lot of money going through the federal government, and
therefore it provides a good opportunity for the federal government
to be on the leading edge of proper reform and change.
Tommy, thanks for your service. Let her go. (Applause.)
* * * * *
THE PRESIDENT: Thanks, T, good job. It's estimated that they
spend $8,000 per worker on information technology in most industries
in America, and $1,000 per worker in the health care industry. And
there's a lot of talk about productivity gains in our society, and
that's because companies and industries have properly used
information technology. If properly used, it is an industry-changer
for the good. It enables there to be a better cost structure and
better quality care delivered, in this case in the health field.
And yet the health care industry hasn't touched it, except for
certain areas. And one area that has is the Veterans Administration.
You're about to hear an example from our Secretary and the
administrator of this hospital and the assets here in Baltimore
about forward-thinking by people who care about the patients they
serve. I know the veterans who are here are going to be proud to
hear that the Veterans Administration is on the leading edge of
change. That's what we expect. The taxpayer's money is being well
spent.
And one of the reasons why the Veterans Administration is doing
so well in changing, kind of, behavior, as well as making sure the
backlog for veterans cases has been reduced, is because of our
Secretary -- a Vietnam vet, a really decent guy, and who is doing a
fabulous job, Tony Principi. (Applause.)
* * * * *
THE PRESIDENT: Thanks. I'm real proud of the job that you're
doing here. Our job is to set the strategy. Smith's job here is to
make sure they put it in place. (Laughter.) Dennis Smith, as I've
told you, runs the show here. Tell us how this happened. I mean,
first of all, how long have you been working for the Veterans
Administration?
MR. SMITH: Thirty-one years.
THE PRESIDENT: Thirty-one years?
MR. SMITH: Yes, sir.
THE PRESIDENT: You don't look that old. (Laughter.)
MR. SMITH: Thank you.
THE PRESIDENT: Maybe because you don't spend a lot of time in
Washington. (Laughter.) Explain your job, explains what this means
-- if you can possibly share some stories with us. You're doing a
great job, by the way.
* * * * *
THE PRESIDENT: I presume it's cost effective?
MR. SMITH: It is.
THE PRESIDENT: I mean, think about a system where you had to take
each individual x-ray and put it in a shelf and get somebody to take
it out of the shelf, and put it back in the shelf, and probably had
to duplicate it just in case somebody wouldn't lose it. So when you
hear him talk about cost-effectiveness and productivity increases,
this is what we're talking about. This system, when it gets advanced
beyond the VA, will save American consumers a lot of money. If we're
wise about how we use technology, we can save money.
Anyway, sorry to interrupt. (Laughter.)
MR. SMITH: That's quite all right. (Laughter.)
THE PRESIDENT: The man knows the chain of command. (Laughter and
applause.)
* * * * *
THE PRESIDENT: Let me ask you, was it hard to get all the records
computerized in the first place? I mean, somebody is listening out
there who is running a hospital in Dallas, Texas. Are they going to
say, gosh, this is such an overpowering start-up that it makes no
sense to do so?
MR. SMITH: Well, with the VA, we kind of started years ago with
this. We started with physician-order entry. And we had packages. We
had a lab package. So we brought lab on board, where the physicians
would order their lab work, and that would be automated. And then we
went to various other systems. So it was gradual that we did it. It
is a daunting task for the hospital sector to bring in a
computerized medical record all at one time. So no doubt, but it has
to be done, Mr. President. We have to do it.
THE PRESIDENT: The goal I set is most people ought to be covered
within a 10-year period -- it's not like, in 10 days, or 10 months
-- this is something that is going to take time to get there. Tell
me about the pharmaceuticals, the distribution of drugs, the
bar-coding, and how that affects --
* * ** *
THE PRESIDENT: How do you deal with the privacy issue? In other
words, some suspicious character around that's --
MR. SMITH: Well, the nurses all have codes to get into the
system, so you have to have a security code to get in. So before --
you can't just go up to a computer. We have these on medication
cards, laptops. So they have to type in a code to get into it. So we
know -- the system knows that if I was a nurse, Dennis Smith is in
the system, and I'm visiting Mr. Principi in his room, and click on,
it will know that I'm administering the drug and who the patient is.
It brings all that up. It's a very secure system. We've built
security into this.
THE PRESIDENT: Good. You're doing a great job.
MR. SMITH: Thank you, Mr. President.
THE PRESIDENT: Thanks a lot. One of the things that's
interesting, one of the challenges we face in our society --
Governor Ehrlich understands this -- is we've got to make sure we
train people in the health care field who understand what they're
doing when it comes to computers and information technology. There's
a lot of jobs available in the health care field.
And the community college system turns out to be a great
laboratory for enhancing people's skills. And I appreciate your
support of the community colleges here in Maryland, giving people a
chance to learn a new skill to meet the challenges of the -- when I
say, challenges of the 21st century, here's one -- figure out how to
use IT in a constructive way to save costs and improve quality care
and to save lives.
I suspect 20 years ago people who were in the health care field
simply could not envision the use of computers and broadband and the
Internet to make the field modern. And our education system has got
to reflect that, Governor. I appreciate your understanding.
So far you've only heard from the public sector. It probably
makes sense to hear from the private sector today, as well, since
the delivery of health care is -- in the private sector is equally,
if not greater part of people's -- the quality of medicine here in
the country.
Johns Hopkins is one of the really great hospital university
systems in America. It's world renowned. And it's quality care. With
us today is Marlene Miller, Dr. Marlene Miller, I might add. She is
in charge of the Office of Quality and Safety Initiatives at
Hopkins. Tell us what that means, and just give us a sense of the
challenges you face and the challenges we face in encouraging the
spread of information technology to the private sector. Is Hopkins
involved with any of this, or anything else you want to say?
* * * * *
THE PRESIDENT: Yes, see, the VA has got an advantage because the
-- all the administrators work for the same -- same outfit, the same
organization. Hopkins stands alone. I suspect Hopkins doesn't do a
very good job of conversing with M.D. Anderson in Houston. Two
different languages -- no, anyway. (Laughter.)
And so the real challenge in the private sector is to take what
the Johns Hopkins people have done intra-hospital and have it be
able to converse with both large and rural hospitals all across
America. And that's where the federal government can help, like the
development of standards. I guess you support the development of
standards when it comes to talking over the Internet?
DR. MILLER: Absolutely.
THE PRESIDENT: What other challenges do you see?
* * * * *
THE PRESIDENT: Let me ask you something. Are you saying that
these systems are able to build-in a kind of a safety valve? In
other words, automatically kick-out a prescription if it doesn't
meet the logic of the computer program?
DR. MILLER: One aspect of an ideal system, in my mind, is if I
prescribe you 50 milligrams of something, but the 10 prior visits I
prescribed you five, I should get a warning flag, and say, look, do
you really mean this?
THE PRESIDENT: But what you said about the wait, something --
DR. MILLER: Well, it's the same issue in children.
THE PRESIDENT: If you've got small children, it is illogical to
prescribe this much dosage.
DR. MILLER: Yes, the prescription I talked to you about was an
adult-sized dose. No one, had they looked in any textbook, would
have ever given that child that dose.
THE PRESIDENT: Pretty good. That's why you've got to get
standards right, Tommy.
* * * * *
THE PRESIDENT: This is a big challenge for us here in the
country. Think of what we're talking about. We're just talking about
how hospitals talk to each other. Then we've got to get it so the
docs are able to talk to each other. And they've got to buy into
this.
And so the reason why we started this process now is we want to
encourage insurance companies and state governments, doctors
organizations, AMA, and others, to understand the great benefit for
the American people by implementing information technology in the
health care field.
By introducing information technology, the health care will be
better, the cost will go down, the quality will go up, and there's
no telling whether the benefits will inure to our society. In other
words, when we get this done -- and we will, because America is a
land of doers and entrepreneurs; our job is to set the goal and then
to encourage and incent people to achieve the goal -- but when we
get this implemented, America will remain on the leading edge of
technological change. This is the kind of innovation that's
practical and makes sense, that will keep us to be the leader in the
world.
And when we're the leader of the world, it means our people have
a chance to make a better living. See, when you're the leader,
particularly when it comes to innovation and technology, your
society improves a lot. The quality of life goes up. People's pay
goes up. People in America are more likely to realize the American
Dream. It's essential that we be in a society of innovators and
change. And this is an area where there is a huge opportunity.
And I look forward to working with people to achieve this
objective. I want to thank those up here who are doing a good job.
Tony, you all have made us proud. I'm giving Tony the credit, but
you deserve it. (Laughter.)
Marlene, thank you for your vision. We look forward to working
with Johns Hopkins as to how -- to better learn how to encourage
implementation of this opportunity. And when we get it done, we
will. We will. It's America, after all. (Laughter.) And when we get
it done, we'll all be able to say we've done our duty, job well
done. Now we go on to the next issue after this. We'll get this one
right.
Thank you all for coming. We've enjoyed it. I hope you found it
as interesting as I have to listen to the great opportunities in
front of us, some of the challenges that have been overcome, and
recognizing that we've got other challenges to overcome, but our
spirits are high, our spirits are high because this country can
overcome any challenge in our way.
God bless. Thank the healers who are here. God bless the
veterans, as well. (Applause.)