I began raising exploring cloud computing in healthcare in early 2008 (see: Cloud Computing in Healthcare: Key Questions to Ask; Finally, A Clear Definition for Cloud Computing). It looks like we are finally seeing some movement toward this technology some five years later (see: Where Do You Keep All Those Images?). Here is an excerpt from an article in the WSJ on the subject:
Health-care providers are starting to embrace the fast-growing area of technology known as cloud services, the model of shared computing in which data is stored on remote servers that hospitals can access via desktop, tablet or smartphone. Instead of big capital investments in their own storage, they are paying a relatively modest upfront charge and monthly usage fees for cloud services. About 15% of health-care systems in the U.S. are using cloud-based storage for images, according to consulting firm Accenture, which estimates that more than half of the country's health systems will use cloud storage for medical imaging in the next three years. The need for storage is immense and growing rapidly. About 600 million imaging procedures are performed each year by health-care providers in the U.S., including CT scans, X-rays, ultrasounds and MRIs....Hospitals generally are required by law to keep images for seven years, but many keep them longer. They also retain backup copies as part of disaster-recovery planning and to comply with the federal health-care privacy law. As a result, image archives are increasing by as much as 40% annually, according to AT&T. Marketers of cloud services say that by allowing health-care providers to store, view and share patient medical images expeditiously over a secure network, they can help doctors make diagnoses faster, reduce the need for duplicate images and protect patients from the extra radiation exposure of having another CT scan because an original can't be found....[An industry expert]....says that despite the advantages of cloud storage, privacy and security concerns have been a barrier to adoption. At present, most providers store recent images in-house, while older images may be shipped to an off-premises data center. In contrast, [he] says, cloud-storage vendors have multiple storage sites, and the provider "doesn't know where the data is sitting and doesn't have direct oversight into who is looking at it. "Vendors have started to provide customers with assurances that they are in compliance with security standards and patient-privacy laws, he says, and the advantages of cloud storage are likely to be increasingly persuasive, especially on the cost side. "With the cloud you have more recurring costs you can finance out of operating funds, as opposed to digging into your capital fund, and you have way less responsibility for maintaining, upgrading and protecting all this hardware every few years,"....
Here's a key quote from the excerpt above: Vendors have started to provide [hospital] customers with assurances that they are in compliance with security standards and patient-privacy laws, he says, and the advantages of cloud storage are likely to be increasingly persuasive, especially on the cost side. Hospital IT personnel have a high level of concern about safety and privacy issues. If they receive proof from cloud vendors and consultants that these concerns can be addressed, they will be more likely to move their data to the cloud. Moreover, hospitals are now under intense pressure to reduce costs and cloud storage is much less expensive than local storage and, for many, operating funds may be easier to acquire than capital funds.
As I noted in a previous note, hospital CIOs will not be using cloud storage for most clinical information without the cooperation and approval of their EHR vendors (see: Google Launches Renewed Effort in Cloud Computing; Reaction in Hospitals). This is unlikely for the following reason, quoting from this note:
There is no possible advantage for these vendors in bringing a third party cloud computing vendor into their relationship with hospitals. If they were to offer a "remote hosting option," they themselves would provide it (Comments about Cerner's Remote Hospital Option (RHO)).
However and as emphasized in the WSJ article above, the major current storage problem in hospitals is located in the radiology departments and their PACSs; these systems are not supplied by the EHR vendors. Therefore, radiology would be a good place to start testing the functionality and value proposition of cloud storage. Accenture, quoted in the excerpt above, is rolling out a new platform to manage hybrid clouds for radiology departments and predicts wide adoption of the technology by the speciality in three years (see: Accenture Rolls Out New Platform To Manage Hybrid Clouds).