[Weekly Compilation of Presidential Documents Volume 40, Number 18 (Monday, May 3, 2004)]
[Pages 697-702]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks in a Discussion on the Benefits of Health Care Information 
Technology in Baltimore, Maryland

April 27, 2004

    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.
    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. 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, and congratulations on the newest Ehrlich.
    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.

[[Page 698]]

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.
    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 dialog. 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. 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.
    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 
byproduct, as opposed to that which is currently coming out of the 
tailpipes 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 ways 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.
    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're going to 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 the tower on 
Federal lands. 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.

[[Page 699]]

    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. Except 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 
that you're about to hear from, and that's the Veterans Department.
    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 patient, the customer, 
is the center of the health care decisionmaking 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 
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. No, your 
records are private if that's the way you want them to be, but there's 
the ways to address this, the privacy issue. And there's the ways 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'll 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 it's 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.

[Secretary of Health and Human Services Tommy G. Thompson made brief 
remarks.]

    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.

[[Page 700]]

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 taxpayers' 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.

[Secretary of Veterans Affairs Anthony J. Principi made brief remarks.]

    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?
    Dennis 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, explain what this means--if you 
can possibly share some stories with us. You're doing a great job, by 
the way.

[Mr. Smith, Director, VA Maryland Health Care System, made brief 
remarks.]

    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]

[Mr. Smith made further remarks.]

    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 startup 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 
barcoding, and how that affects----

[Mr. Smith made further remarks.]

    The President. How do you deal with the privacy issue? In other 
words, there's some suspicious character around that doesn't----
    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

[[Page 701]]

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 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?

[Dr. Marlene Miller, Director, Quality and Safety Initiatives, Johns 
Hopkins Children's Center, made brief remarks.]

    The President. Yes, see, the VA has got an advantage because all the 
administrators work for the 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 intrahospital 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?

[Dr. Miller made further remarks.]

    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 5, I should get a warning flag, and say, ``Look, do you 
really mean this?''
    The President. But what you said about the weight, 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 the 
standards right, Tommy.

[Secretary Thompson and Secretary Principi made brief remarks.]

    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

[[Page 702]]

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've 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, health care will be better, 
the cost will go down, the quality will go up, and there's no telling 
whether other 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--this is 
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.'' But let's 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.

Note: The President spoke at 1:50 p.m. at the Department of Veterans 
Affairs Medical Center. In his remarks, he referred to Gov. Robert L. 
Ehrlich of Maryland, his wife, Kendel, and their newborn son, Joshua; 
former Gov. William Donald Schaefer of Maryland; George W. Owings, 
secretary-nominee, and Lawrence J. Kimble, acting secretary, Maryland 
Department of Veterans Affairs; and Nelson J. Sabatini, secretary, 
Maryland Department of Health and Mental Hygiene.