• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
HealthKaiser Permanente

Where High-Tech Meets High-Touch

By
Clifton Leaf
Clifton Leaf
Down Arrow Button Icon
By
Clifton Leaf
Clifton Leaf
Down Arrow Button Icon
September 27, 2017, 6:50 PM ET
Add Fortune on Google for similar content.

If you want a gander at the future of technology in health care, you might take a look at an institution founded in 1945.

I speak of ye old behemoth, Kaiser Permanente. With somewhere close to 11.8 million policy holders, KP is the biggest integrated health delivery system in the country, which means it combines coverage (a health plan) and care—the latter via its 39 hospitals, 677 medical offices, 200,000-plus employees, and the 23,000 non-employee physicians in Permanente medical groups, who contract exclusively with the health plan.

Or to gauge its size in another way, if KP weren’t a not-for-profit entity, its $64.6 billion in 2016 operating revenue would place it at No. 42 on the Fortune 500—right behind Dell, and just ahead of MetLife, Aetna, and PepsiCo. As noted, it’s a behemoth.

But as I said up top, this septuagenarian Brobdingnagian health system has also made a name for itself as an innovator—and notably so in the realm of technology. That hasn’t come by accident. Under the leadership of CEO Bernard Tyson, who took command in 2013, KP has invested heavily in tech, as Kaiser has done from the beginning. (It was one of the first health systems to implement electronic health records.) Of their roughly $3 billion capital spend every year, about 25% is dedicated to technology, with the total IT budget reaching $1 billion, Tyson told me yesterday when visiting Fortune. “It’s a major commitment, as critical as if we were building another hospital or medical office building. That’s how strongly we believe in it.”

Much of this investment is focused on changing the center of gravity of healthcare—a center that has long been the hospital itself. “They built that, and then they built everything in and around it,” says Tyson, “and then everybody had to come in to the hospital [or a doctor’s office]” to get the care they needed. “We’re saying, ‘No you don’t. There are multiple access points and the hospital or doctor’s office is just another access point.’” Technology, says Tyson, can help extend that access to anyone and anywhere, make it more convenient—and, importantly, make it more affordable.

To that end, KP plan members last year had nearly 61% of “visits” with a KP doctor, nurse, or other health provider by way of a mobile device: in many of those cases, a customer simply texted a question and got an answer back, or they just wanted to access their own medical file or view lab results (which they did 45 million times in 2016, an increase of 12% over the prior year). Secure email, likewise, has largely replaced waiting endlessly for a call back from a doctor. Last year, there were nearly 24 million such email exchanges between KP members and caregivers; while customers filled nearly 22 million prescriptions online.

KP doctors, likewise, increasingly see patients by video conferencing—which is to say, in real-time. And the health system can do this without charging a copay because these triage-sessions-by-chat often save the cost of an unnecessary office visit. (“Yes, ma’am, that rash will go away.” “Yes, sir. It’s okay to have your pulse race when you’re running for a train.”) As for medical records, those are available electronically to every KP doctor, for every KP patient—which is sort of a remarkable achievement when you consider how sprawling the health system is. (Kaiser claims it’s “the largest non-governmental medical record system in the world.”)

Of course, there are many who will read the above and shudder. “There, in the maw of technology, is the swallowed soul of human contact!” you might exclaim: “There, in the name of progress and cost-cutting, lies a cold, impersonal future.”

When I pose such concerns to Tyson, he is not oblivious to them. But then he’s also not buying them. His own experience tells him otherwise: that healthcare can be both high-tech and high-touch.

In 2006, Tyson—who was then an EVP at Kaiser, newly in charge of the health plan and hospital operations—had to undergo coronary bypass surgery. Prior to the operation, he lay waiting in his hospital room, as a lot of well-meaning people came in to visit him “to make sure I was okay, and doing what people do,” Tyson recalls. Eventually, everyone except the nurse left the room. “What she saw was, ‘Here’s this guy who’s trying to be strong,’” Tyson says. “But obviously I was scared and she saw the fear. She didn’t say a single word to me. She just put her hand on top of my hand, and then she removed it and walked away. And I calmed down. I will always remember that—because it was the right medicine for the moment. She didn’t have to say a word. She understood. She got it. And she gave me comfort. I’ve told that story many times before. Because it was that one touch that helped me to frame many of the things that I talk about today: that health care is about the human touch. You can’t write a procedure to tell a nurse to do what she did. Technology is important and we leverage it as much as possible, but it is not a substitution for the touch, for the hand, for the moment.”

“We are most vulnerable when something goes wrong with our bodies,” Tyson continues. “And so to have someone that you trust, in the moment that you are putting your life in their hands—to have someone who understands you at that level, as that nurse did—is a connection that I never want to break.”

Technology, says Tyson, can take cost out of the system, create efficiencies, improve care, and make it more convenient and accessible. But it cannot substitute for touch. “The human interaction,” he says, “that’s what healthcare is about in its finest moments.”

This essay appears in today’s edition of the Fortune Brainstorm Health Daily. Get it delivered straight to your inbox.

This post has been updated to clarify Kaiser Permanente’s annual spending on technology.

About the Author
By Clifton Leaf
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Health

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Health

The 6 Best Exercise Bikes of 2026: Fitness Expert Reviewed
HealthDietary Supplements
The 6 Best Exercise Bikes of 2026: Fitness Expert Reviewed
By Christina SnyderJuly 1, 2026
11 hours ago
kean
PoliticsCongress
Tom Kean discloses depression diagnosis behind 4-month absence from Congress: ‘until you experience it yourself, it is difficult to fully understand’
By Mike Catalini, Joey Cappelletti and The Associated PressJune 30, 2026
2 days ago
‘Cop on your wrist’: Wearables offer tons of data, but people are still going to sleep to Netflix and TikTok
HealthBrainstorm Tech
‘Cop on your wrist’: Wearables offer tons of data, but people are still going to sleep to Netflix and TikTok
By Amanda GerutJune 29, 2026
3 days ago
usa
EnvironmentHeat
Long and dangerous heat wave to roast America from Dallas to New York through July 4th holiday
By Marc Levy and The Associated PressJune 29, 2026
3 days ago
France suffers 1,000 additional deaths in just the past week amid record heat wave—and 85% involved people aged 65 and above
EuropeWeather and forecasting
France suffers 1,000 additional deaths in just the past week amid record heat wave—and 85% involved people aged 65 and above
By Kirsten Grieshaber, John Leicester and The Associated PressJune 28, 2026
4 days ago
Peter Rahal speaks on stage in front of a black and purple background.
RetailFood and drink
David Protein CEO says ‘diet trends are over’ because of GLP-1s: ‘What’s next is really hard to predict’
By Sasha RogelbergJune 28, 2026
4 days ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
1 day ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
7 days ago
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
Newsletters
The Supreme Court's birthright citizenship ruling hands the U.S. economy a $7.7 trillion win
By Diane BradyJuly 1, 2026
23 hours ago
Current price of oil as of July 1, 2026
Personal Finance
Current price of oil as of July 1, 2026
By Joseph HostetlerJuly 1, 2026
19 hours ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
5 days ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.