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

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'

3

Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
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

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

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 health benefits of saunas: backed by research and experts 
HealthHealth
The health benefits of saunas: backed by research and experts 
By Katie MooreMay 22, 2026
7 hours ago
Kaged Whey Protein Isolate Review (2026): Our Honest Opinions
HealthDietary Supplements
Kaged Whey Protein Isolate Review (2026): Our Honest Opinions
By Emily PharesMay 22, 2026
9 hours ago
Gabrielle Judge, a content creator known as “Ms. Anti Work"
SuccessWorkplace Innovation Summit
Founder of Ms. Anti Work says her ‘lazy girl job’ allowed her to only work a few hours a day—and she built her media company on the side
By Emma BurleighMay 22, 2026
17 hours ago
What is red light therapy?: Our experts break down the new wellness trend
HealthHealth
What is red light therapy?: Our experts break down the new wellness trend
By Katie MooreMay 21, 2026
1 day ago
Legion Recharge Creatine Review (2026): Expert Tested
HealthDietary Supplements
Legion Recharge Creatine Review (2026): Expert Tested
By Christina SnyderMay 21, 2026
1 day ago
Clinical Psychologist Daniel Wendler
ConferencesWorkplace Innovation Summit
A ‘proudly autistic’ workplace expert says putting neurodivergent employees in a typical office is like dropping a polar bear in Austin, Texas
By Tristan BoveMay 20, 2026
2 days ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
1 day ago
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
Success
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
By Preston ForeMay 20, 2026
2 days ago
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
3 days ago
Pay transparency is exposing a bigger problem: Most companies can't explain why they pay what they pay
Workplace Culture
Pay transparency is exposing a bigger problem: Most companies can't explain why they pay what they pay
By Sydney LakeMay 20, 2026
2 days ago
McKinsey partner says up to 50% of work hours could be transformed within the next 5 years
AI
McKinsey partner says up to 50% of work hours could be transformed within the next 5 years
By Emma BurleighMay 21, 2026
1 day ago
A 'proudly autistic' workplace expert says putting neurodivergent employees in a typical office is like dropping a polar bear in Austin, Texas
Conferences
A 'proudly autistic' workplace expert says putting neurodivergent employees in a typical office is like dropping a polar bear in Austin, Texas
By Tristan BoveMay 20, 2026
2 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.