A new analysis of the U.S. health care system by PricewaterhouseCoopers’ Health Research Institute suggests that the ineffective use of heath information technology costs the nation $81 billion to $88 billion annually. The study also cites other opportunities to improve the efficiency of the system, such as reduction of medical errors ($17 billion) and better management of diabetes ($22 billion).

Since 2004, The Rhode Island Quality Institute (RIQI) has been partnering with the state of Rhode Island to lead a community-based effort to design and build a statewide electronic health-information exchange (HIE) under a 5-year, $5 million demonstration grant awarded to the state by the Agency for Healthcare Research and Quality (AHRQ). Rhode Island was one of only six states to receive the grant designed to improve the quality, safety and value of health care.

Now, after intense collaboration among hospitals, physicians, nurses, consumers, insurers, government agencies and employers, we are preparing to launch the Rhode Island HIE within the next year.

The development of a statewide HIE here in Rhode Island will allow patients to authorize their doctors and other health care providers to easily, securely and effectively share information with each other to improve care, help prevent duplicate tests and reduce medical errors.

But, as strong as the case is for the statewide exchange of health information, the case is equally strong that we must safeguard the privacy and security of the patients who choose to use the system. While existing law appropriately permits the exchange of clinical information from provider to provider, the statewide exchange of clinical information among multiple entities warrants extra protections. That is why we have helped draft and introduce The Rhode Island Health Information Exchange Act of 2008. This groundbreaking legislation will ensure that consumer privacy is protected while we create a system that enables our clinicians to deliver higher-quality, safer care.

The most critical elements of this proposed legislation codify voluntary participation for both patients and providers, state oversight of the entity operating the HIE, penalties for misuse of the system, and the development of a community-based commission that has a voice in how the data is used. This proposed legislation is the product of a comprehensive and broad-based community-engagement process that took more than 18 months to complete. To date we have received more than 35 letters of support from consumer-advocacy groups, physicians and other providers, insurers, hospitals, universities, employers, Chambers of Commerce and state officials.

Rhode Island is distinguishing itself nationally as a leader in the use of health-information technology to improve the quality, safety and value of health care. We were the birthplace of SureScripts’ e-prescribing system and currently rank No. 2 nationally behind Massachusetts in e-prescribing.

Now, with this proposed legislation, we hope to lead the nation in efforts to create a set of critical patient safeguards, many of which go well beyond existing state and federal privacy and security protections. It is only through safeguards such as these that health-information technology’s promise of improving quality, safety and value can be realized. •

Laura Adams is the president and CEO of the Rhode Island Quality Institute.