Skip to main content

Case Study: IT implementation in Kaiser Inc.

Many health care companies are on the cutting edge of medicine, but they lag behind in the use of information technology (IT) and the Internet. Loading old steel filing cabinets with medical and insurance records is typical of these health care companies. These massive documents are stored in huge rooms and shipped around the country by the truckloads. Today, many health care companies have adopted a more healthy approach with the help of IT and the Internet. In a US$ 2 billion project, Kaiser Inc. is launching a massive technology initiative. The objective is to move all its operations to the Internet. Kaiser Inc. plans to develop a digital medical record of all its 9 million members. The record will be linked to the company's 361 hospitals and 10,000 doctors, nurses, etc. The heart of the system will be an Internet site. Separate Internet sites will allow doctors and health care administrators the ability to order a wide array of supplies and equipment. The Kaiser CEO, Mr David, believes that the Internet 'will be the central nervous system for tying all the elements needed to care for patients better'. The new Internet strategy also aims to improve the bottom line for Kaiser. In 1998, Kaiser Inc. made losses of around US$ 288 million. Some blame the disappointing loss on underestimating the amount of care the company needed to give to patients. The new Internet system would also help to reduce costs. Kaiser Inc. hopes that the vast Internet system will allow it to compare a doctor's bills that vary substantially. The idea is to fine-tune the standard treatment that would reduce cost. Kaiser also hopes that the new system will cut paperwork and record-keeping costs.


1. Explain Kaiser's move to take the help of IT and the Internet. In your opinion, is it a positive move? Why or why not?

Kaiser’s move to take the help of IT and the Internet was absolutely fine. Since unnecessary cost & expenditure is going over the record keeping that is also not yet centralized. So moving over Internet will make it centralized, accessible from anywhere, and maintenance of their server only. So I think it is a positive move. Because in the long run it’ll pay off the investment made on centralized server based database. For instance, say until now they have N numbers of records of their patients then how much it would become after a decade. It could be 10 to 50 times of N. Then in that case keeping the records of past and present would have become much more costlier than what it is now.

2. Do you think Kaiser's Internet initiative is aimed primarily at improving patient care or is it to reduce costs? Give reasons to support your answer.

Kaiser's Internet initiative is aimed primarily at reducing costs of file storage and accessibility. But after implementing it world-wide, it made more easy for other people like doctors, caretakers, etc. to keep a tab on patients health and his past history of medical records. So indirectly it is about improving patient care.

3. In your opinion, what operations of Kaiser Inc. should be moved to the Internet? Discuss the future scope of improvement in Kaiser's system.

Operations involving patients records, that will include history of medical checkup, past diseases, and treatments, records of doctor’s who have treated it, etc should be moved over Internet first as it is involved with the patients care. After that doctors records should have been moved. Following which the medicine records. At last there would have been other data related to infrastructure, management, etc. be moved.
By regular upgradation of the software/website providing user centric data as well as analyzed data will make lots of improvements in Kaiser's system in future.


Popular posts from this blog

What is the responsibility of business towards society? Why is social responsibility at a low pitch in India?

Responsibility of business towards society
A society consists of individuals, groups, organizations, families etc. They all are the members of the society. They interact with each other and are also dependent on each other in almost all activities. Thus, it has certain responsibilities towards society, which may be as follows:
to help the weaker and backward sections of the societyto preserve and promote social and cultural valuesto generate employmentto protect the environmentto conserve natural resources and wildlifeto promote sports and cultureto provide assistance in the field of developmental research on education, medical science, technology etc.
In other words, the responsibility of business towards society are:
Protection of environment.Better living conditions like housing, transport, canteen, crèches etc.Promotion of sports and culture.Opportunity for better career prospectsRegular supply of goods and servicesProper working conditions and welfare amenitiesGoods and services at…

Explain the meaning, relevance and features of the Competition Act, 2002.

In 1969 Govt. has passed an act and it had given the name monopoly and restrictive trade practices (MRTP). It became popular with the name of MRTP 1969. This act has many provisions to control the monopoly and to promote the competition. It has defined RTP and also explained the powers of MRTP commission. But its scope was very narrow and Govt. of India has made new act called competition act 2002. On the place of MRTP ACT 1969 after this MRTP act 1969 was fully repealed.

Explanation of Competition Act 2002
Competition Act 2002 states that Indian traders must not do any activity for promoting monopoly. If they will do any activity in the form of production, distribution, price fixation for increasing monopoly and this will be against this act and will be void. This act is very helpful for increasing good competition in Indian economy.

Under this act following are restricted practice and these practices are stopped by this act.
Price fixing: If two or more supplier fixes the same price…

How is data and message security ensured in e-business?

The data and message security ensured in e-business via:

Encryption: This technology deploys a public key and a private key infrastructure to ensure security. The public key can be distributed but the private key remains only with the user and the service provider. So, it works just like the username and password system of your e-mail account.Digital signatures: This technology requires a recipient’s password to decode the encrypted data. The sender’s authentication gets confirmed through a digital certificate, issued by credible authorities such as Verisign and Thawte.Secure socket layers (SSL): This process involves both public key and digital certificate technologies to ensure privacy and authentication. To initiate the process, a client asks for authentication from the server, which is done through a digital certificate. Then, both the client and server design session keys for data transfer. The session will expire following any modification or prolonged period of inactivity.Firewa…