E-knowledge in health care: a strategic imperative

The Health Insurance Portability and Accountability Act (HIPAA, Public Law104-191), signed by President Clinton on 21 August 1996, is definitely providing a strong push for the US health care sector to embrace various e-commerce initiatives. The Act aims to improve productivity of the American health care system by encouraging the development of information systems based on the exchange of standard management and financial data using EDI. It also requires organizations exchanging transactions for health care to follow national implementation guidelines for EDI established for this purpose. While this Act specifically emphasizes the need for the health care environment in the US to embrace EDI, it is clear that such an Act impacts and encourages the adoption of various forms of e-knowledge management systems by respective players in the health care arena. This paper presents the case of Kaiser Permanente, Ohio and their development and use of MARS (medical automated record system); an e-knowledge management system in health care. This system has enabled Kaiser to enjoy many strategic benefits that before the implementation of this system could not have been envisaged. The system also enables Kaiser to be well positioned in terms of HIPAA.