HIPAA Compliant Electronic Medical Record Capture/Management System
The successful outcome of medical processes largely depends on complete, relevant, and timely medical data. Up-to-date and accurate data allows for images of surgical wounds, surgical pathology, and operative techniques to be used in the most efficient ways for patient management. However, while there are technological solutions that could improve medical data storage and retrieval systems, any improvement to medical data systems must include not only technological elements but ethical and legal considerations as well. There are multiple regulations guarding the privacy and integrity of patients' medical data. One of the major regulatory instruments that governs medical data in the United States is the Health Insurance Portability and Accountability Act (HIPAA), which imposes harsh penalties for breaches in patient privacy, data handling, and data security rules as defined in the act. Hence, images of medical data or medical procedures that are not HIPAA compliant must be discarded. To be HIPAA compliant must meet certain standards for image quality as well as accurate accompanying information (such as when and where the image was created) along with an adherence to the strictest standards for patient privacy.
Company X has conceived the idea that there is an opportunity for it to formulate an "image capturing process that is fully compliant with HIPAA regulations." The company has developed an application (app) that runs on standard smart-phone platforms, where this app allows the phones' high-resolution camera to capture the relevant images and then to process them in accordance with HIPAA-process requirements. The company's plan is to market this application primarily to physicians working in hospitals as well as to primary care physicians employed in other settings.
Organization, Market, and Competition Characteristics
As noted above, Company X has determined that the segment of the medical market that would be most likely to buy this application is primary care physicians as well as various physician specialists who work in hospitals. In part because of the enactment of HIPAA and in part because of the systematic changes brought about to the American healthcare system over the last generation due to the pervasiveness of HMOs and more recently PPOs, physicians find themselves with far more clerical responsibilities than their predecessors had to contend with.
Even as the distribution of work has shifted in the medical field, requiring physicians to do more and more of the work themselves, the practice of medicine has become more and more complex with individual patients undergoing far more tests (and far more complicated tests) than their predecessors underwent. This combination of more work and greater medical, technological, and legal complexities had made physicians more open to technologies that will save them both time and money. They thus constitute an ideal demographic segment for this new application.
The financial situation of the company is somewhat risky given that it does not yet have any customers or a product on the market. However, the relatively low-cost of a software start-up counters this fact, making the company's financial future reasonably sound.
Organization of the Technology Personnel
The company is a relatively small one given that it is selling intellectual technology and does not need significant infrastructure per se: It does not need a large factory, for example, or a large-scale distribution system. The company needs its software engineers who, while they have already developed the software, will need to be present to vet the system as it is rolled out. There will necessarily be changes that need to be made for the beta version, and even once the beta version is released there will be the need for future updates that reflect changes in medical practice, software technology, hardware technology (as new phones are released into the market), and in legal regulations concerning patient records.
The company will also include a marketing department. The background of these staff members will include both marketing techniques and a medical background. While there are generalized marketing techniques that the department can rely on, the marketing staff will be far more able to sell the country's product if they can communicate with the physicians if they can do so in a collegial way.
Physicians are used to being pressured by marketers, especially those from drug companies. As a result, they are likely to respond negatively to what they feel is a hard sell. To avoid this response from physicians, the marketing staff must be able to make a firm alliance with the physicians...
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