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July 20, 2009 4:00 AM PDT

Are the stars aligning for telemedicine's succcess?

by Marguerite Reardon
  • 12 comments

The current health care crisis has some experts saying that telemedicine's time has finally come.

While technology companies have been touting the use of virtual technology to allow doctors to remotely examine and monitor patients for decades, up until recently the business case for deploying these expensive systems was hard to justify. But now as lawmakers in Washington, D.C. look for ways to fix the broken health care system, technologies, such as high-definition video conferencing and telepresence, are getting a second look.

A patient is examined remotely by a doctor using Cisco's HealthPresence system.

(Credit: Cisco Systems)

Last week, technology giant Cisco Systems and a major U.S. insurer UnitedHealth Group announced a partnership in which UnitedHealth will use a Cisco product called HealthPresence to develop a national program to allow doctors to treat patients remotely. The program will initially focus on providing people in remote and under-served areas with health care. But Cisco and UnitedHealth representatives say eventually the program could be expanded throughout the country.

Part of the reason that telemedicine hasn't taken off in a big way in the past has been cost. While technologies, such as telepresence may eventually reduce the cost of providing health care services, initially they are expensive to deploy. For example, Cisco's high-end telepresence conferencing system that is sold to large companies to replicate a boardroom costs upward of $300,000.

And because these systems require the use of high-definition audio and video, which must be transmitted over an Internet connection between doctors and patients, these systems require significant amounts of bandwidth. This means that without ubiquitous broadband access throughout the country, the cost benefits and usefulness of the technology is limited.

Still, the rising cost of health care and predictions that these costs could cripple the nation, have increased the urgency for nontraditional solutions. This change in attitude coupled with the Obama administration's plan to reform the health care system has stirred more interest from almost every big technology company in the country.

Intel and General Electric are working on a home monitoring system. Google and IBM have also announced an in-home system that transmits data from devices such as blood-pressure cuffs and glucose meters via the Internet. And Cisco and Polycom have retrofitted their corporate telepresence systems to provide near-real-life interaction between patients and doctors.

And they all believe that the health care industry is finally ready to spend big bucks on expensive new technologies today to help stem rising costs for tomorrow.

"What is different right now is that the health care system in this country is being asked to deliver service more effectively and efficiently without increasing the available resources," said Nick Augustinos, senior director with Cisco's Internet Business Solutions group for global health. "So what's needed now is a health care system that can scale. And that is what telepresence and other remote monitoring technologies can do by extending the natural reach of doctors and clinicians in a nontraditional way."

The partnership between Cisco and UnitedHealth is an important milestone in the telehealth movement because the companies will be working together to solve not only the technical and clinical hurdles that come with deploying this technology, but they will also be trying to solve the business problems for delivering health care.

"This is why we partnered with an insurance company, so that we could understand the business model to build a solution that will deliver effective, efficient care at a lower cost," Augustinos said. "And the truth is that if we didn't approach it that way, then we'd have wonderful technology that could provide excellent care to lots of people, but no one would want to buy it because they wouldn't want to pay for it."

One of the challenges in deploying telemedicine has been the fact that insurance companies have been more likely to reimburse traditional face-to-face doctor visits rather than procedures done remotely using telemedicine. But with the partnership between UnitedHealth Group, which insures some 70 million people in the U.S. and Cisco , it looks like insurance companies may be realizing the economic benefits of scaling the health care system virtually.

"Health care is a business," said Bob Preston, vice president of solutions marketing at Polycom, another major telepresence provider in the health care market. "And if medical groups and health insurers can offer services to more patients via telepresence, while reducing their costs, they can increase their revenue."

Using high-definition cameras and monitors, telepresence technology creates a "conferencing" experience that is so intimate people think they are in the same room with the people on the other end of the teleconference. Cisco and Polycom, two of the leading telepresence equipment providers on the market, have adapted technology they developed for large companies for use in medical environments.

Typcially, these solutions are scaled-down versions of the high-end telepresence systems, but they also include adapters for medical devices that can provide vital sign monitoring, such as blood pressure, pulse rate, oxygen saturation and temperature, as well as interfaces for stethoscopes and otoscopes for examining ears.

Cisco has designed its "HealthPresence" system as a small telepresence room, or "pod." And Polycom offers a variety of products that range from full telepresence rooms to a mobile telepresence cart that can be wheeled from room to room in a hospital or clinic.

The way it works is that a doctor sits on one side of the telepresence connection, while a medical professional mans the booth or cart on the patient side of the connection. This technician sets up the call and uses the medical equipment to examine the patient as directed by the doctor.

Cisco HealthPresence Pod

(Credit: Cisco Systems)

Then the equipment sends data and images gathered during the examination via an Internet connection to the doctor. The doctor can control the camera to zoom into different parts of the body. At the same time, electronic medical records and other data can be viewed by the doctor on a separate computer screen.

While high-definition cameras and screens have made it possible to diagnose many illnesses and injuries, there are still limitations. For example, the experience doesn't allow doctors to actually touch patients, which in some circumstances can help them more accurately diagnose an illness or injury. But for many minor injuries and ailments, telemedicine works very well, experts say.

Depending on the type of service that is being offered, the professional on the patient side of the call could be a trained technician, or he or she could be a registered nurse or general practitioner doctor.

"Nurses and doctors are in short supply in some places, so depending on what level of care that is being provided, the HealthPresence system can be manned by less expensive resources," Cisco's Augustinos said. "By using a lower cost professional or technician, the insurer or medical group providing the service can maximize their resources."

The private medical group NuPhysicia is using Polycom's mobile Practioner Carts to provide walk-in health services at Houston-area Wal-Mart Stores. Instead of using higher paid nurse practioners at the retailer's clinics, the group is using paramedics and remote doctors over the telepresence system to see patients.

The first implementation of the Cisco/UnitedHealth Group partnership is to provide a mobile medical service called Connected Care. Working with an organization called Project HOPE, Connected Care will have a mobile truck or van that travels through four counties in New Mexico offering basic health screenings and treatment for chronic ailments, such as diabetes.

Cisco and UnitedHealth Group have already tested their Connected Care program with Cisco's own employees. In a pilot program launched last year, more than 300 Cisco employees in the company's San Jose, Calif., headquarters used primary-care physicians in Los Angeles via the telemedicine system. Now the companies have expanded the trial to Cisco's Raleigh, N.C., campus where 4,000 employees will have access to five primary care physicians in Cisco's corporate health care center in San Jose.

These trials follow another pilot program that Cisco conducted last year at the Aberdeen Royal Infirmary in Scotland. So far the results have been good. In addition to Cisco's own employees being satisfied with the service, Cisco reported last week that roughly 93 percent of people who received care via the telepresence system in the Aberdeen trial said they would recommend the service to someone else.

Polycom's telepresence gear has also been used to serve people in rural communities. The Cherokee Health Systems has been using the mobile telepresence system to provide medical care to 17 rural school clinics in Tennesse with only two nurse practitioners. And NuPhysicia has used Polycom gear to provide medical care to workers on offshore oil rigs.

The Polycom Practioner Cart

(Credit: Polycom)

"There is a huge shortage of general practitioners especially in rural areas," Polycom's Preston said. "And as the population ages and people become more immobile, telepresence solutions can help provide access to doctors to people who would otherwise have to travel long distances to see someone."

But Cisco's Augustinos points out that telemedicine is not just for providing medical services to people living in remote areas. It can also be used in urban settings where access to health care professionals is readily available, but where patients must sit in waiting rooms for hours to be seen because demand is so high.

Using presence technology, the Cisco HealthPresence product allows doctors to search the database in a given medical group or ecosystem to find a doctor or specialist anywhere in the country who is available at that moment to see a patient. This allows for a more efficient and cost-effective way to run an urgent care clinic that often sees walk-in patients.

Augustinos explained that the concept is similar to using an 800 number to contact a any service provider's customer support. People call the number, and they are asked to identify the problem or issue they're having so the call can be routed to appropriate pool of operators.

In this case, patients willing to see the first available doctor would be triaged and a doctor, who meets the patients criteria, would be contacted via video-conference to examine the patient.

Another scenario where HealthPresence is useful is when a doctor is examining a patient in his or her office and if he detects a problem during an examination that requires consultation with a specialist, he can look to see who is available in the network. Instead of writing a referral and having the patient schedule an appointment with a specialist, the doctor can dial-in the available specialist for the consultation right then and there.

Augustinos believes that using telemedicine in this way can help lower overall medical costs.

"The thing that drives prices up is an imbalance between supply and demand," Augustinos said. "But if you can more efficiently distribute the resources that exist and optimize those resources, then you can flatten the pricing curve."

But he admitted that no technology, whether it comes from Cisco or anyone else, will be a magic pill to solve all of the health care system's problems.

"We won't solve every ill in health care industry," he said. "But we are suggesting that if you optimize the scarce clinical resources that are available today, you can use the money that is put into the system more efficiently. And that is a start."

December 30, 2008 4:57 PM PST

Networking predictions for the new year

by Jon Oltsik
  • 4 comments

As 2008 draws to a monotonous close, there is still a sliver of time left for me to make my 2009 networking predictions. Yes, money will be as tight as a Minnesota Senate race next year, but there certainly will be a number of bright spots. Here is my list of 10 technology areas to watch in 2009 (in no particular order):

  1. Managed network services. Unlike other IT infrastructure areas (servers, storage, security equipment) large and small organizations have been buying network services for years (think Frame Relay, Centrex, etc.). This comfort level will persuade frugal chief information officers to pad contracts with additional services in 2009. Network service providers like AT&T, BT, and Verizon will prosper as IT managers eschew internal efforts and instead dabble in areas like managed network security, remote access, and WAN (wide-area network) optimization. I expect increasing quarter-to-quarter growth in many managed network services in 2009 and beyond.

  2. Phat networks. While many IT projects will be put on the back burner, I still believe that we will see a lot of network backbone upgrades next year. Why? All of this Web 2.0/IT consumerization stuff generates a lot of traffic and the load isn't getting any lighter. Like it or not, CIOs will have to spring for 10Gb core switches and routers to keep remote and branch office workers productive and happy.

  3. Unified communications. OK, now I'm in buzz-word territory but I see a problem and an opportunity here. The problem is that we are all communicating with each other using a half dozen or so independent technologies. We need to rein this in soon while integrating the concept of "presence" into our communications processes. On the flip side, there is a great opportunity to integrate unified communications into business processes to improve efficiency and service. Imagine how happy you'll be when your service call is answered by a product expert rather than a series of frustrating menus and gatekeepers.

  4. 802.11n. I've been a believer in this next-generation WLAN (wireless local area network) standard for a while. In 2009, we should see significant growth in penetration and revenue. Given improvements in bandwidth and security, I expect to see 802.11n as a replacement for access switches as organizations refresh the network edge. I also anticipate additional manufacturing, health care, and government applications built to take advantage of the 802.11n momentum. Look for HP to become an aggressive competitor in the WLAN space while independents like Aruba and Meru get gobbled up by the likes of Juniper and Brocade/Foundry.

  5. Core network services. I'm talking about services like DNS (domain name system), DHCP (domain host configuration protocol), RADIUS (remote authentication dial-in user service), and IP address management. With all of the networking activity in the past few years, these core services have been a virtually ignored kludge leading to unplanned downtime, security vulnerabilities, and manual operations. This mess must be fixed soon--good news for Blue Cat, Infoblox, and Juniper. Look for Microsoft to stir the pot with a core networking services appliance in 2009 as well.

  6. Application networking. I'm combining two categories here: Application acceleration and WAN optimization. The year 2009 promises to consolidate tons of applications and services in massive data centers running on top of virtual servers. Users and virtual machines will be in a constant state of mobile flux while exchanging enormous files and speaking an ever-growing variety of network protocols. Someone has to play traffic cop to avoid gridlock so A10 Networks, BlueCoat, Citrix, F5, and Riverbed should do just fine.

  7. Telepresence. The use of video conferencing should grow as companies restrict employee travel and equipment prices plummet. Cisco is about to announce a sub-$1,000 SMB platform while carriers are planning managed services offerings. But, telepresence growth will also expose its limitations. Business managers will discover that boring six-hour telepresence sessions are no substitute for actual human contact.

  8. Virtual server and network integration. As physical servers host dozens of virtual guests, and virtual machines move from host to host, networking can get pretty dicey. The way around this problem is tight integration between virtual and physical switches. VMware and Cisco are already working on this but what about the other hypervisors (Citrix, Microsoft) and switching providers? Look for open application programming interfaces and one-off relationships in 2009.

  9. Data center networking. Closely related to virtual server integration, expect to see more specific data center networking equipment from Extreme Networks, Force 10, and glamour start-up Arista Networks. Data center equipment will offer functionality like virtual switch integration, clustering, dense port counts, and support for IP storage. Cisco and Brocade/Foundry will focus in this area while Juniper and HP will aggressively push products and programs.

  10. Real Cisco competitors. Cisco is a well-oiled machine but I see a perfect storm for others to gain share. With organizations looking to save money, technically advanced low-priced alternatives will look extremely attractive. I've already seen Aruba and Extreme win deals like this when Cisco was the incumbent. Along these same lines, the competition has never been stronger in terms of both technology and resources. Finally, as Cisco enters the blade server market, look for HP and IBM to cozy up to others or push their own gear. Brocade/Foundry, HP, Huawei, Juniper and others may gain share at Cisco's expense in 2009.

I'm sure I missed a few items but I'm just about out of time. Happy New Year!

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December 7, 2008 10:49 PM PST

Cisco launches new video initiative

by Marguerite Reardon
  • 1 comment

The online video revolution has begun, and Cisco Systems says it has designed a new strategy complete with new products to help its customers meet the demand.

On Monday, the company, which makes devices that shuttle traffic around the Internet, will announce a new architecture and strategy to help its customers better handle video traffic on their network. CEO John Chambers will be pushing the new architecture and initiative at the company's annual C-Scape press and analyst conference in San Jose, Calif., on Tuesday.

It's no secret that Cisco thinks that video is a big deal. The company spent $6.9 billion to buy Scientific Atlanta three years ago. And it's made other important video acquisitions, such as the purchase of Arroyo in 2006, which developed technology for improving video-on-demand. Also in 2006, it rolled out its telepresence product that uses high-definition video to allow corporate customers to re-create a virtual boardroom to meet with colleagues and customers over a video conference.

But now the company says it will help its customers build what it calls "MediaNets" or networks built specifically for video. Along with a new architecture, the company is introducing new products that will eliminate buffering delays and pixilation issues for video traffic traveling over an IP network.

"We believe there is an opportunity to add a set of new technologies and new devices to the network that are specifically designed for video," said David Hsieh, marketing vice president for Cisco's emerging technologies group. "Video is becoming the dominant source of traffic on networks. And we believe there is a huge opportunity to add new capabilities to make networks optimized for video."

This message will be an easy sell to its service provider customers who are already seeing huge demand in bandwidth from video traffic as people watch video from sites like Hulu.com or YouTube. And as phone companies and cable operators deliver more high-definition video programming of their own over IP networks, they will need even more help managing their networks to make sure they are efficiently using bandwidth. Experts predict that more than 4 billion video streams per month will be delivered through Internet-enabled set-top boxes by 2012.

New products, such as Cisco's ASR 9000 edge router, which is part of the MediaNet architecture, could help these customers better manage their networks to accommodate this surge in video traffic.

But the video push could be a tougher sell for the Cisco's core corporate customers, which so far haven't been big users of video. What's more, companies are already cutting back on their IT spending, and some may not see adding video as a top priority.

"One of the biggest challenges that Cisco faces is making companies realize how video can transform their businesses, " said Zeus Kerravala, a vice president at the Yankee Group. "Cisco needs to sell video to its corporate customers as an important collaboration tool that will change how they interact internally as well as with their the customers and partners."

Indeed, that is what Cisco is trying to do with the MediaNet initiative. CEO John Chambers has already been touting the company's high-end telepresence product as an alternative to face-to-face meetings with clients and partners. The idea is that companies can reduce their costs and improve productivity by meeting virtually instead of flying around the country or around the world. Cisco plans to take this idea down to the desktop level too.

The first product in the new portfolio of products is called the Cisco Media Experience Engine 3000. It's a hardware appliance intended to ensure that video can be delivered to any device on the network. The box, which sits in the corporate network, is intelligent enough to transcode video so that it can be played on any device, such as a digital sign, PC, or mobile handset.

If Cisco succeeds in convincing its corporate customers to jump on the video bandwagon, the company will not only be making additional revenue from a new set of products, but it will also drive demand for its traditional products, such as routers and switches.

"Video chews up a lot of bandwidth," Kerravala said. "So adding video to a network can drive a whole new upgrade cycle, and that means more business for Cisco."

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