CISCO Medical-Grade Network

The Medical-Grade Network: Helping Transform Healthcare

Helping Transform Healthcare

Healthcare organizations worldwide are turning to information technology to cope with mounting pressures to reduce costs and improve quality and safety. They are using technology to create an integrated system of care that connects patients, clinicians, payers, and support organizations so that all key stakeholders can exchange information more effectively. The Cisco® Medical-Grade Network (MGN) provides the industry-specific framework required to meet healthcare’s unique needs for interoperability, security, availability, productivity, and flexibility.

Persistent Business Challenges

A number of business challenges confront the healthcare industry. Among these are service quality, safety, rising costs, and a shortage of skilled staff to meet the needs of an ever-expanding number of patients with an increasingly complex burden of illness. Meeting these challenges requires a shift from acute episodic care to preventive and long-term chronic care management. This new care model must be supported by interoperable health information technology and patient-centric care systems.

Minimizing Costs

Controlling costs and administrative waste, while delivering high-quality care, is a primary concern for clinicians and those who pay for healthcare—including insurance companies, employers, patients, governments, and taxpayers. In a May 2006 report, the Centers for Medicare and Medicaid Services estimated that annual health expenditures in the United States would reach $1.9 trillion in 2006, rising to more than $2.4 trillion by 2015. Healthcare costs have risen from 7.2 percent of the gross domestic product (GDP) in 1965 to more than 16 percent today. These costs are projected to be 20 percent of the GDP in just under a decade. Rising healthcare costs are a global concern, with significant increases seen in several countries in the European Union and Canada. According to the Organization for Economic Co-operation and Development, healthcare spending accounted for 10.9 percent of the GDP in Switzerland, 10.7 percent in Germany, 9.5 percent in France, and 9.7 percent in Canada. According to the Centers for Disease Control and Prevention (CDC), chronic conditions account for approximately 75 percent of all U.S. healthcare costs. Uninsured or underinsured patients who have acute conditions usually lack basic healthcare access, and without routine preventive care, their conditions can become chronic. The CDC estimates that by 2013, 56 million people in the United States under the age of 65 (nearly 28 percent of the workforce) will not have insurance.

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