Weaver, Terri R.
What is Cloud Computing?
Cloud computing is the next generation of the internet as we know it today. Cloud computing consists
of web-based hardware and software resources made available on the Internet that is managed by a
third-party provider. It provides computing essentials as a service. These services typically provide
access to advanced software applications and high-end networks of server computers.
Also known as ‘the cloud’, it is when you take applications and run them on infrastructures
other than your own. It provides a means through which everything from computing power to
computing infrastructure, applications, business processes to personal collaboration can be
delivered to you, as a service, whenever and wherever you need it.
Figure 1 - (Covered Cloud Solutions)
Insurance
Insurance, as we know it, is a promise to pay for a specific loss in exchange for periodic
payments (premiums). It is designed to protect an individual, company or entity (the insured) in
the event of an unexpected loss. Some lines of business (LOB) are required by law and others
are optional. Examples of LOB’s are as follows:
 Auto
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 Disability
 Life
 Health(care)
Insurance, Healthcare and ‘The Cloud’
The adoption of cloud computing in the insurance industry is still in its early stages. There are
only a small number of vendors that offer services tailored to the needs of the insurers.
However, this is starting to change and the advances in the industry have led to ‘the cloud’.
Figure 2 - (Cloud Collaboration in Healthcare) (Cloud Collaboration in Healthcare)
The healthcare industry is starting to move to ‘the cloud’, despite the belief that compliance
and security issues would slow them down. The major reason for moving toward cloud
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computing is the need to increase storage. According to the research firm Markets and
Markets, the cloud computing market in healthcare is expected to grow to $5.4 billion by 2017.
Organizations within the healthcare are looking to cloud computing in order to increase its
business agility as well. Cloud computing provides a great solution that drastically reduces the
IT services delivery time. Companies can begin with public, private or hybrid cloud deployment
models that help them best meet their specific requirements.
Despite this growth, many in health care are still pushing back on cloud computing, citing
security and privacy issues. But others are finding better security models and technology in the
cloud. Moreover, most health care organizations moving to cloud computing are doing so to
reduce operational costs, because many have very limited budgets -- a powerful motivation
that will overcome the overblown security and privacy excuses. (Linthicum, Health care and the
cloud are finally coming together, 2013)
Business Agility
According to Wikipedia, business agility is the ability of a business to adapt rapidly and cost
efficiently in response to changes in the business environment. Agility is a concept that
incorporates the ideas of flexibility, balance, adaptability, and coordination under one umbrella.
In a business context, agility typically refers to the ability of an organization to rapidly adapt to
market and environmental changes in productive and cost-effective ways (Business Agility). In
healthcare, the indicators on the agility side include an active identification of products and
services which improve care, reduce cost, improve revenue as well as manage risks.
Healthcare organizations are facing a lot of challenges when it comes to delivering quality
healthcare services that face upcoming changes in regulations as well as shareholder
expectations. Delivering consumer/shareholder expectations, providing the best care and
managing increased policies and procedures is extremely challenging in this environment.
Agile healthcare organizations have the ability to identify important products and services
within the environment. They can also bring quality healthcare products and services to market,
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improve customer satisfaction as well as increase the existing revenue. Adapting to new
policies and procedures is also a benefit.
Figure 3 - (Subramanian, 2010)
Agile organizations have a high degree of risk-and-reputation responsiveness. They can
anticipate and quickly adapt to new policies operating requirements. They can also respond,
effectively, to the unexpected impact or negative events. Cost-management burdens result
from the increasing demand for services as budgets decrease. Particularly in the United States,
incoming healthcare reform will add an increase in the number of new insured’s to the
healthcare system. In addition, providers will have to put more attention to overhead reduction
due to due to a decline in government reimbursements.
Healthcare distributors are essential to the healthcare system as suppliers of the products and
services which enable the care needed. Although they are different, they share many of the
same business goals as providers, such as creating a valued brand and providing quality in the
products and services in a demanding environment.
HEALTHCARE & HIPPA
With both industries’, healthcare and insurance, needing some of the same data, ‘the cloud’
could benefit both as long as they meet the Health Insurance Portability and Accountability Act
(HIPAA) requirements. Some examples of that data could be as follows:
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
Demographics

Doctor Visit Results

Prescribed Medicines
Health Insurance Portability and Accountability Act, of 1996, provides national standards to
protect the privacy of personal health information (HIPAA). It improves the efficiency and
effectiveness of the health care system. HIPPA does the following: (Health Insurance Portability
and Accountability Act)

Provides the ability to transfer and continue health insurance coverage for millions or
American workers and their families when they change jobs

Reduces health care fraud and abuse

Mandates industry-wide standards for healthcare information on electronic billing and
other processes

Requires the protection and confidential handling of protected health information
Protecting the confidentiality, integrity, and availability of electronic protected health
information (ePHI) is the essence of the HIPAA Security Rule. Since data centers typically store,
transmit or process ePHI, they must comply with the HITECH standards and citations to meet
HIPAA compliance. The same risk analysis, administrative safeguards, physical safeguards,
technical safeguards and ongoing due diligence apply just as much in the data center as in a
provider’s facility. (Perspectives, 2012)
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Figure 4 - (History of Healthcare)
The privacy rules of HIPAA, gives patients control over the way that their healthcare
information is used; including data that is put into their medical record, discussions with a
provider regarding treatment, as well as billing and any other confidential information. Under
this act, patients allowed to request copies of medical records, make corrections, and decide
whether they would like to give permission for their data to be shared.
When it comes down to healthcare and our data, privacy is very important. It is necessary for
us to make sure that patient data is on LOCKDOWN…even while using a secure Internet Service
Provider. THIS IS THE LAW!
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BIBLIOGRAPHY
Business Agility. (n.d.). Retrieved from www.wikipedia.org.
Cloud Collaboration in Healthcare. (n.d.). Retrieved from http://www.hyperoffice.com/.
Covered Cloud Solutions. (n.d.). Retrieved from http://www8.hp.com/.
Health Insurance Portability and Accountability Act. (n.d.). Retrieved from http://www.dhcs.ca.gov/.
HIPAA. (n.d.). Retrieved from http://www.webopedia.com/.
History of Healthcare. (n.d.). Retrieved from http://www.healthcarehistory.org/.
Linthicum, D. (n.d.). Retrieved from www.healthdatamanagement.com.
Linthicum, D. (2013, February 12). Health care and the cloud are finally coming together. Retrieved from
http://www.infoworld.com/.
Perspectives, I. (2012, June 29). Health Care: What HIPAA Means for Data Centers. Retrieved from
http://www.datacenterknowledge.com/.
Subramanian, K. (2010, September 10). Enterprises Consider Business Agility As A Primary Driver
Towards Cloud. Retrieved from http://www.cloudave.com/.
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