Friday, August 5, 2005

Brandy Baker / The Detroit News Chris Waters, left, and Paul Johnson of Covisint discuss an online project that the firm is doing with Blue Cross Blue Shield. The goal is to for hospitals, insurers and patients to access data on one site.

Covisint teams up with Blues

Venture aims to cut spending, increase safety through statewide online health care site.

By Sharon Terlep / The Detroit News

Health care online Blue Cross Blue Shield of Michigan is teaming with tech company Compuware Covisint to offer a plethora of health care services information online. Patients, insurance companies, individual doctors and health systems can access the information. Some of what's expected to become possible with the pairing: • Patients can create an online medical profile to bring to their doctor instead of filling out forms with each visit. • X-rays and other medical records can be transmitted electronically between hospitals, doctor's offices and labs that are in different health care systems. • Claims can be filed and checked online by doctors and insurers. Privacy concerns have made this difficult. • Doctors can prescribe medication online, helping to ensure accuracy by eliminating the pen-and-paper method of prescribing. Comment on this story Send this story to a friend Get Home Delivery

Covisint was supposed to ride the Internet boom into the 21st century with a vision hailed by many as innovative enough to slash costs for automakers and revolutionize business of purchasing of auto parts.

It was supposed to be the next big thing, one that would culminate in a billion-dollar IPO. But the company tanked as the nation's tech bubble burst. Instead of closing shop, though, the Compuware-owned online purchasing exchange is trying to reinvent itself by delving into the world of health care information sharing.

Covisint said Thursday it will work with Blue Cross Blue Shield of Michigan to create a statewide online gateway to the health care system, the firms said Thursday.

The venture aims to cut millions in wasteful spending and improve patient safety by enabling hospitals, doctors, insurance companies and patients to access data and services at one online site. The companies say the venture will help cut administrative costs that comprise up to one-third of health care spending.

The companies didn't release financial information on the deal. Blue Cross says it's part of the insurer's commitment to spend $200 million to $300 million to become more high-tech over the next few years.

Covisint's move comes as more states are realizing the savings made possible through online systems that link hospitals, physicians' offices and independent clinics.

"We'll be able to use this technology to go after a very big problem," said Covisint President and CEO Bob Paul. "We decided to get very, very focused on what it is we are uniquely able to bring to the market."

Launched amid much hype in 2000, Covisint was created to build an online communication system to allow auto suppliers and manufacturers to swap auto parts online.

The company never came close to realizing its goal of using online auctions to revamp the way auto suppliers and manufacturers interact. Suppliers, fearful the service would drive down profits, never warmed up to Covisint.

Since then, however, Covisint has remade itself and has had success in selling its services to small auto suppliers.

The venture with Blue Cross is expected to rival in scope the company's business with the auto industry business, Paul said. Covisint has had its sights on the health care industry for more than two years, he said.

The first services will go online this summer, with more being added during the next couple of years.

Covisint's part in the deal is to provide the Blues with the platform to securely transmit health information over the Internet. The online infrastructure that's already in place for the auto suppliers will be the basis for the system.

Blue Cross, Michigan's largest insurer with more than 4.7 million members, will develop the programs to be used and work to get health care providers across the state on board with using it. Medicare and Medicaid will also use the system.

Health care has been slow coming to the vast world of communication technology, bogged down by privacy concerns and monolith organizations resistant to change. Only 13 percent of hospitals use electronic records, and 14 percent to 28 percent of physicians are wired, according to a survey last year by the Michigan Department of Health and Human Services.

Today, at least 15 states have some form of electronic health record or networking initiative under way, according to the eHealth Initiative, a national effort to get health care institutions wired up. It reports 23 states are considering some kind of data sharing or networking initiative.

Services offered under the Covisint-Blue Cross pairing will be far reaching. Patients can create their own medical profile to bring with them to the doctor instead of filling out separate forms with each visit. Results from X-rays and other tests can be beamed across the state between health care providers, saving the time and costs of having to retake tests or wait for information to be shipped.

"Hospitals are already doing this, but everyone would like to see that happening throughout the entire health care system," Blue Cross spokeswoman Helen Stojic said.

Gov. Jennifer Granholm lauded the pairing. The technology "can play a key role in lessening medical errors, improving safety and reducing costs," she said Thursday in a prepared statement.

You can reach Sharon Terlep at (313)223-4686 or sterlep@detnews.com.