Comparing the chip industry to medical care

1 Aug
2005

Reasoning By (Mis)Analogy: Should Hospitals be Compared to Microchip Factories?

My friend Roy Poses does a wonderful job of analyzing an editorial from last week’s JAMA. The editorial, written by the former chairman of Intel Corporation, should never have appeared in JAMA. This former chairman tries to make the claim that medical care could improve rapidly with EMR acceptance.

As Roy points out, the writer has no concept of health care. Unfortunately, too many critics of health care have no clue concerning the extent of the tasks we face every day. In the chip industry, one can control almost all the variables. In health care, we are delighted if we can find a single variable which we can try to manipulate.

Roy finishes (in typical Roy fashion):

Maybe he really got to the point nearer the end, when he pushed for more and quicker implementation of the electronic medical record. “When it comes to operational efficiency, nothing illustrates the chasm between the 2 industries better than a comparison of the rate of implementation of electronic medical records with the rate of growth of e-commerce.” This comparison is hard to fathom. EMRs, to be useful, need to digitally categorize data that is very hard to organize. No one yet knows how to store, for example, the contents of the medical history in anything other than a text file. Yet an electronic medical record that consists mostly of text and image files may be no easier to manipulate than a paper chart. E-commerce, on the other hand, must simply keep track of stereotyped transactions. (Readers of Health Care Renewal have seen why the EMR may not be as much of a panacea as its promoters proclaim.) But selling more EMR systems may increase the demand for Intel’s chips.
I have no objection to inter-disciplinary work. And health care can obviously benefit from insights from other fields. But why are we in health care constantly berated by people based on bearing such bad analogies as those proposed by Grove?

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3 Responses to Comparing the chip industry to medical care

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jamesgaulte

August 1st, 2005 at 10:01 am

I agree completely.The editorial should not have been published.Andy Grove is obviously a brillant,accomplished former CEO of a big time high tech company but his comments suggest he has no concept of the medical profession or what should be done to improve health care.I had planned to pen a post critical of the editorial but Dr.Poses was quick on the draw.

Avatar

SteveSC

August 1st, 2005 at 3:08 pm

I don’t have ready access to JAMA, and don’t care to spend $12 bucks just to look at the editorial, so I can’t respond to specific items that Dr. Poses read. On the other hand, his rant is a clear example of why much of health care is of questionable quality. Too many doctors believe that, just because they understand (hopefully) how one or more human body systems work, and also work inside of the health care system, they are total experts on how the health care system and all of its subsystems work. They therefore turn up their figurative nose at any ‘outside interference.’

As a physician who practiced clinically (yes, actually talking to and touching real patients) for over a decade, and who also went to the ‘dark side’ and did management consulting with health care companies and even one chip manufacturer, I can say that there are many aspects of manufacturing excellence that could benefit health care quality.

Scheduling techniques adapted from auto manufacturing (Toyota) can reduce ER waiting time while at the same time improve the ER physician’s ability to take more quality time with patients. Similar processes can reduce both the wait for an outpatient office visit and reduce the number of no-shows. The maligned EMR has huge potential–just think of one example: ready access to all medications the patient is on, and a simple subroutine that would flag any potential interactions as soon as a prescription is entered and before it is filled.

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Daniel Newby

August 1st, 2005 at 5:07 pm

I haven’t read the editorial and I’m not a doctor, but I would think carefully about anything Andy Grove has to say.

“In the chip industry, one can control almost all the variables.”

Wouldn’t that be nice. When a new chip factory is put together, nothing works, and nobody knows why. Every step of the process is intentionally up against the limits set by the laws of physics. It’s black magic and voodoo all the way. What they do is measure every aspect of the outcomes and procedures. That data is analyzed and the manufacturing procedures are ruthlessly refined. Ego and politics are strongly frowned upon, because the company is losing a couple of million dollars EVERY DAY the plant isn’t selling chips. Gradually the factory starts to make more and more working chips. If they do a good job, the plant becomes profitable. Refinement continues forever, to cut costs and improve chip performance.

The essential thing is the closed loop feedback cycle: information -> analysis -> improvement -> information -> and so forth. If the plant were, for instance, dispensing an incorrect chemical 0.01% of the time, this would be discovered and fixed in the normal course of business; if the boss discovered on his own that this problem existed, there would be hell to pay. If a process engineer discovered that a $50,000 machine would be cost effective, the purchase order would be signed ASAP.

Compare this to hospitals. Very little is measured. What is measured is locked away in unanalyzable handwriting. Budgeting concentrates on costs and tends to ignore returns. PR tends to ignore returns too, so there is little competitive advantage. Epidemiology is considered exotic. Oddball drug interactions and rare effects are invisible for lack of computer-readable data.

“No one yet knows how to store, for example, the contents of the medical history in anything other than a text file.”

How silly. Diagnoses have long been encoded with computer-readable numbers. Drug regimens and analytical test results are equally trivial to store in a computer. Likewise for number of visits, treatment cost, time of day of procedures, number of days of hospitalization, specialist types consulted, analog scales for symptoms, number of days off work, a simple disability metric, and so forth. Even limited data like this is an statistical gold mine that can drive process improvements. But if you don’t measure it, you’re flying blind.

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