Pharma industry touts cure for data security ills

Medical research often leads to unexpected breakthroughs in other peripheral areas.

Based on the success being enjoyed by a project developed among a handful of leading pharmacy industry players, some experts say that you can add enhanced data security to the long list of advancements attributable to the health care industry.

Founded in 2001, RxHub was the brainchild of three of the nation's largest pharmacy benefits managers (PBMs) -- companies responsible for handling the unseen legwork necessary to allow pharmacies to dole out prescriptions to eligible consumers, and for customers to employ their health care benefits to cover related expenses.

Those companies -- AdvancePCS (since acquired by CVS-Caremark), Express Scripts, and Medco Health Solutions -- were looking for a way to better facilitate the massive volumes of data transfer needed to match customers with their medical, insurance, and payment records to cut costs and eliminate potential mistakes.

In creating RxHub, a joint venture that serves as an electronic clearinghouse responsible for gathering the medical and benefits data needed to serve customers, people involved with the project claim that the pharmacy companies also pioneered an information-sharing model that other businesses may want to emulate to relieve their own data security headaches.

At its core, RxHub claims to be a universal communication framework that links health care providers, insurance companies, the PBMs, and local pharmacies for the purpose of sharing electronic records and prescription data.

One of the most attractive side benefits of the venture, backers claim, is that it in addition to streamlining that process, the effort has also helped the partners pilot a new manner in which to access and correlate sensitive information to protect the interests of the many businesses and customers they serve.

Rather than forcing any of the firms in the prescription drug food chain to create additional databases for the purpose of providing records to their various external partners, RxHub serves in a data transport role that mines information from all the sources in real time to process transactions, without ever aggregating the information itself.

Built around master data management software provided by vendor Initiate Systems, the RxHub infrastructure allows the involved parties to perform all the records validation work necessary for pharmacies to verify prescription and payment information in a matter of seconds, without demanding that anyone in the ecosystem create or retain any additional records.

In doing so, the system allows the companies to live up to the demands of regulations, including the Health Insurance Portability and Accountability Act (HIPAA), while protecting themselves from potential data leakage incidents, RxHub executives said.

"The idea was to create a hub for all of this sensitive data without ever creating a master database where the information itself would be stored; we're more like FedEx, we look at the routing information, handle the package, and get it there reliably," said JP Little, chief executive of RxHub.