Three days after HHS released its 80-page report summarizing 500-plus responses on what’s required to build a nationwide network of interoperable health data exchange, HHS Secretary Mike Leavett announced on June 6 a multipoint plan for the private sector to join the reds in transforming “health care as we know it.”

Leavett announced the formation of the American Health Information Community (AHIC), a public-private collaboration of up to 17 members that will advise HHS on “how to make health records digital and interoperable, and assure that the privacy and security of those records are protected.” At the same time, Leavett firmly pushed the reds into a leadership post, saying that more than one-third of all U.S. healthcare is paid by the federal government, and that it should demonstrate leadership in the areas of architecture, standards and certification for future interoperability.
AHIC was designed for an initial two-year life span, with an option to extend up to five years. After that, AHIC will be sunsetted and HHS expects that a private-sector healthcare IT initiative will take over the AHIC role, adopt “additional needed standards, certify new health information technology and provide long-term governance for health care transformation.” Leavett summarized the government’s leadership role by saying that “once the market has structure,” efficiencies, healthcare innovations and improvement in care delivery would be the purview of patients, providers, medical professionals and vendors.
Beyond formation of AHIC, Leavett also promised that HHS soon will issue four RFPs around creating processes for setting standards, IT certification, architecture for an Internet-based nationwide exchange of health information and privacy/securities policies. He anticipates a federal spending of $200 million in two years, including HHS’s dedication of $86.5 million in fiscal 2005 and the $125 million requested by President Bush for fiscal 2006.