VA hospital may have infected 1,800 veterans with HIV: A process problem RFID fixes

via cnn.com

I can tell you from deep reviews of the VA and civilian hospitals that i many cases, the VA has better processes. They are just in the news a lot more because (a) they are under a microscope using Federal money; (b) they treat our most important population: our veterans; and (c) they are one f the largest healthcare systems in the US. Our Veterans deserve only the best case and usually they get it at the VA.

But, again, being under the microscope, they get in the news fairly often. In this case, a VA hospital is in hot water for not properly cleaning some of their dental equipment. They have had to send notices to 1,800 vets that they may have acquired HIV, Hep B or C. If this sounds familiar, its because it is. Last year, the VA was cited for similar issues in colonoscopies.

In fact, Mobile Aspects pioneered a solution for cleaning processes with RFID 2 years ago (iRIScope). One customer, the Hospital of the University of Pennsylvania is using the system to track the cleaning, use and storage of over 200 scopes in 6 locations. With RFID, all the data is gathered automatically, and proactive alerts are sent out in "bad" situations. Further, our RFID scope tracking system literally has lights that glows red, and locks down the cabinets, if a potentially dirty scope is placed back into storage.

The dental issue at this VA is similar. The VA deserves recognition for having a dental tool cleaning protocol (most hospitals wouldn't). However, someone broke protocol. Subsequently, they had to send a notice to 1,800 veterans because their manual records are hard to decipher. This is where RFID comes into play - without the user logging anything, we see that someone didnt do a step properly and we immediately log it and send out an alert. If there is a downstream issue, instead of sending a notice to 1,800 veterans, the hospital only needs to send out a notice to the 100 veterans that the improperly cleaned tool was used on.

Properly implemented in an extremely simple to use manner, RFID logs every step and creates alerts right at the point of potential error. Additionally, if an error does still occur, there is good, actionable data at the users fingertips. This is the power of RFID to heal hospitals.

Posted via email from Suneil Mandava's Posterous

Want To Know What A Hospital Charges? Good Luck. Need RFID for good, actionable data.

Transparency in healthcare? We all know it only exists months after a surgery is performed and it is often inaccurate. Unless I was at one of Mobile Aspects' member hospitals, if I was paying for my own surgery (I am thankful to have good Healthcare Insurance), I would definitely hire a consultant to review my bill and argue with the hospital. I can tell you hospitals have very poor estimates of cost - they dont gather data well. As shown in end results, the data is poor and inaccurate.

Before, they would estimate supplies being used in a case - this estimate came from data hand entered into their systems (read: poor data with many typos). Then the operating room charge (often $100/minute or more) is another poor estimate of human resources and cheaper supplies used in the case. No one was looking, who cared if it was accurate?!

But steps are being taken. Our client hospitals saw the problem and wanted to get a much better view and deliver better service to their patients. With our RFID data gathering systems, they are getting a much richer, real-time, accurate view of their costs per case. They know exactly what devices were used on a case, the supplies, the length of the case, the doctor performing the case, etc. All without having to hand enter one piece of data! Our systems gather the information automatically. Now, our member hospitals are able to give clear estimates to patients, based on the physician. At some of our member hospitals, even the physician is given a receipt of all items used in the case: its sitting in his inbox before he scrubs out!

Its not going to change that there is variability from patient to patient, and you dont know until you are in the case with the patient on the table. However, you can give ranges of costs to the patient before they enter based on good, actionable data.

Posted via email from Suneil Mandava's Posterous

How Data Travels From a Wireless Device

How Data Travels From a Wireless Device

How Data Travels From a Wireless Device

How does that picture you just sent your buddy get from your phone to his computer, exactly? Surprisingly enough, not through pixie dust and unicorn dreams! Here's how it really works.

This infographic from Time Warner Cable shows just how involved the process is, and acts as a good reminder that sending something "wirelessly" actually often involves, well, a whole bunch of wires. [TWC Untangled via Business Insider]

Send an email to Brian Barrett, the author of this post, at bbarrett@gizmodo.com.

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Posted via email from Suneil Mandava's Posterous

RFID fixes charge capture problems in hospital operating rooms: we need to see Goldilocks

The health insurance industry is fraught with problems from end to end. The industry has a lot of checks and balances against inaccurate charge claims by hospitals. This has been built up over a 50 year period so that (a) insurance providers can catch errors and (b) the insurance industry can cut costs by denying claims.

In an operating room setting, 40+ percent of a claim comes just from implants and supplies alone. The average hospital typically has a one size fits all charge for the lower cost supplies (they may also bill that as part of the OR room charge). But the real cost of supplies in in implants (hips, knees, stents, heart valves, etc). Hospitals use extremely manual processes to charge for the expensive implants : often taking stickers off of product, placing on to a charge sheet and after the case typing these into a billing system.

This leads to tremendous error: about 15-20% of supplies and implants billed in the OR are incorrect. This can be as minor as getting the size of an implant wrong to as major as not billing for a stent or billing for too many stents. The reason has nothing to do with any incompetency by people working in the OR (on the contrary, these are highly trained, skilled and smart people). The problem is the OR is a high stress environment (we call it the 'Warzone' of the hospital) and manual systems break. Imagine trying to scan a barcode or peel a sticker off a stent in the middle of the case with a patient coding and a doc yelling!

The hospitals and patients come out on the losing end of this system. If too much is billed, the health insurance industry has many checks and balances in place to catch and deny the claim - costing the hospital and patient months of paperwork to correct and refile. Insurance companies live in plush office buildings, not a stressful hospital, so this is easy for them. If the hospital misses a stent and doesn't charge for it, the health insurance provider's cost is reduced by $2,000, so they won't correct it. The hospital just lost $2,000 and the information about the implant is not on the patient record.

Mobile Aspects' RFID systems ensure accurate, reliable, real time information when it comes to these supplies and devices. In the OR environment, staff simply scan the barcode of the patient before a case starts. Anything then removed from our shelf is automatically captured and sent to the billing system. If any devices are not used, it is simply placed back on our shelves and the charge is credited in real time. This leads to Goldilocks charge capture: not too much, not too little, but just right (and just right every time). And when 40% of the case cost is implants and supplies in the OR, we better all ensure we get it just right.

From The New York Times:

DIGITAL DOMAIN: See You in 6 Months. And Your Insurer Is O.K. With the Bill.

Instant electronic processing of medical insurance claims has long been discussed, but its adoption has been slow.

http://nyti.ms/cfxRUs

Posted via email from Suneil Mandava's Posterous

The House always wins: Why Rx Insurance is likes being inefficient

Great article from the NYTimes this weekend discussing how claims processing works in the healthcare industry. The whole industry is setup to have incomplete, inaccurate information and late payments. This is to the benefit of insurance providers. They can always fall back on 'systemic problems' rather than taking blame when things go wrong. It is nearly impossible to read an insurance report and find a problem (though i bet more than 25% of claims have a problem), but the insurance providers can blame anyone else in the system.

There is $300-$500 billion of waste in insurance processing: where do you think all that money goes? There are no drivers pushing them to make this a better process - much like Blockbuster actually wanted you to return movies late (15% of their video rental business came from late fees), the insurance industry likes all this lag in the system. The House always wins under these circumstances.

From The New York Times:

DIGITAL DOMAIN: See You in 6 Months. And Your Insurer Is O.K. With the Bill.

Instant electronic processing of medical insurance claims has long been discussed, but its adoption has been slow.

http://nyti.ms/cfxRU

Posted via email from Suneil Mandava's Posterous

US Healthcare Quality comes down to the basics: Uninsured More at Risk Even in Hospitals

A new study finds that even after they have heart attacks or strokes and are admitted to hospitals, the uninsured are more likely to die than those who carry private insurance.

A gap persisted even after the researchers adjusted for disparities in the patients’ underlying health, socioeconomic status and other factors.

Researchers analyzed more than 150,000 discharges of working-age Americans, ages 18 to 64, who were hospitalized for heart attack, stroke or pneumonia. The data was drawn from the 2005 Nationwide Inpatient Sample.

The study found that uninsured patients who had heart attacks were 52 percent more likely to die in the hospital than the privately insured, and those who had a stroke were 49 percent more likely to die in the hospital.

“We thought there would be some disparity and a little bit of a difference, but we were surprised there were such significant differences,” said Dr. Omar Hasan, a hospitalist at Brigham and Women’s Hospital in Boston who was the lead author of the study, in the Journal of Hospital Medicine.

One reason, Dr. Hasan suggested, may be that patients who have trouble getting care may have more advanced disease.

“We know for a fact that people who are uninsured delay seeking care,” he said.

The pattern continues: In the US, driving better healthcare and bringing down costs start and end with the basics. This new study points out how our system catches disease much to late in the process. For those that are uninsured, almost by definition, they dont have annual checkups and preventative checkups. Therefor, diseases are caught much too late, are very expensive to treat, and lead to a much higher level of patient mortality.
Education is going to be paramount as the new healthcare bill kicks in. People without insurance for decades, all of a sudden will have insurance. However, their behaviors wont change all of a sudden. They are used to going to the ER's as their first point of service. Further education will be required on how to access the healthcare system. To the non-user, it can be mindboggling.

Posted via web from Suneil Mandava's Posterous

Eliminate waste in Healthcare by focusing on the basics: $3.6 trillion could be saved

Key cuts to healthcare waste saves $3.6 trillion

Maggie Fox, Health and Science Editor
WASHINGTON
Mon Jun 14, 2010 12:01am EDT

WASHINGTON (Reuters) - The U.S. healthcare industry can cut $3.6 trillion in waste over 10 years with a few common-sense steps to eliminate fraud, errors and to encourage efficiency and healthier behavior, according to an analysis by Thomson Reuters.

Politics  |  Health

Recommended changes include giving patients a medical "home" to better coordinate care, eliminating a culture of fraud, encouraging patients to ask about healthcare costs, and rewarding quality improvement initiatives.

Such changes could reduce waste by 5 percent a year, adding up to $3.6 trillion over 10 years, according to the report.

"Last year, we published a report concluding that the U.S. healthcare system wastes $700 billion a year," Bob Kelley, vice president for healthcare analytics at Thomson Reuters, said in a statement.

"This new report describes a possible path for significantly reducing that waste."

Kelley and colleagues at Thomson Reuters, parent company of Reuters news agency, asked clients what they were doing that worked. They also read published studies on ways to cut waste.

The report, available at factsforhealthcare.com, outlines some of the best measures.

They include:

* Encouraging everyone to manage their own health through personal behavior to prevent diseases, early detection and appropriate care for chronic diseases.

* Using a simple checklist approach to prevent medical errors, which cost $50 billion to $100 billion a year. For instance, Dr. Peter Provonost at Johns Hopkins University in Baltimore estimates his checklist he uses when inserting a catheter to deliver medication, called a central line, reduced infection rates from 11 percent to zero. This prevented 43 infections and eight deaths and saved the hospital $2 million.

* Reducing opportunities for fraud. A George Washington University report estimated that in 2007, fraud accounted for 5 percent to 10 percent of the $2.3 trillion in healthcare spending.

"The goal is to change the culture of fraud," the report reads, adding that while most providers submit legitimate bills, "the public and the provider community need to be better educated about how fraudulent payments directly reduce resources available to patients for legitimate and necessary healthcare services."

* Reduce fragmentation in the delivery of care, better coordinating care among specialists and cutting administrative costs.

* Create a "culture of performance improvement" that promotes the quick dissemination and adoption of best practices.

"New Jersey's five largest health plans and five physician groups have created a pilot program allowing hospitals and physicians to communicate with health plans and address administrative tasks through a single Web portal," the report reads.

Electronic records are key, the report said. "The Minnesota Department of Health estimates that when fully implemented, a law requiring the standard, electronic exchange of routine healthcare business transactions will save the state more than $60 million per year," it reads.

Democrats in Congress passed a healthcare reform bill in March that largely focuses on health insurance. Republicans say the plan is too expensive at a time of monstrous federal budget deficits, but President Barack Obama has argued it is possible to use reform to save money.

"Great effort was expended to provide a balanced and specifically apolitical viewpoint equally weighing the concerns of patients, providers, payers, and purchasers," the Thomson Reuters report reads.

(Editing by Philip Barbara)

Comments

Jun 14, 2010 6:27am EDT

No mention of the biggest waste of health care funds – the US private health insurance industry. We could save $400 billion annually with a single payer plan for this nation. It would much more efficient than the suggestions listed.

macman2 Report As Abusive

Jun 14, 2010 7:06am EDT

Obamacare will never work unless we turn the health insurers into non profit entities.

Storyburn_has Report As Abusive

Jun 14, 2010 9:24am EDT

Our healthcare and insurance industry are the same as banking and mortgage filled with greedy management plus some unethical doctors. They take advantage of the inefficiency and ineffective of our governemnt and bureaucratic system. Basically they have been milking tax payers money for years.

gwng99 Report As Abusive

Jun 14, 2010 12:01pm EDT

Even if no other reforms come to pass, it is absolutely necessary to take a hard look at the DME (durable medical equipment) racket. In our city, a block of these fraudsters was shut down after an investigation. When a $14.99 pair of support stockings turns into a $75.00 pair after the amount of latex in the stocking turns it into DME, something is fishy. It’s the same with the scooters, walkers, etc. Billions could be saved if prices were reasonable and realistic.

CalGal Report As Abusive

Jun 14, 2010 12:29pm EDT

Keep call insurance companies greedy – - what about calling government incompetent and wasteful? * * *

Why do lefties keep insisting that going to a single payer system will save money? What about the billions of dollars of fraud that is built into the Medicaid and Medicare because Congress tells it what to do? What about the poor record keeping systems they have so they can’t keep track of their payments?

jimmy37 Report As Abusive

Jun 14, 2010 3:40pm EDT

Jimmy37-
The fraud in Medicaid and Medicare is not due to congress telling it what to do, but hospitals and doctors double and triple billing as well as billing for services not rendered. The poor record keeping is only a piece of the puzzle.

indieinfla Report As Abusive

Jun 14, 2010 8:34pm EDT

“Kelley and colleagues at Thomson Reuters, parent company of Reuters news agency, asked clients what they were doing that worked. They also read published studies on ways to cut waste.”
No industry experience, just 3rd party analysis and this constitutes a story that is newsworthy? Trying to grab headlines?
Why not actually do some thorough research of people in the industry?

buckeyecal Report As Abusive

Jun 15, 2010 12:05am EDT

The billing process, as it exists now, is perhaps the single biggest contributor to fraud and abuse. Lack of effective regulation allows fraud to occur. As a response, the fiduciary intermediates unilaterally claim fraud on what are basically random claims. This results in dissatisfied providers while unfairly enriching the billing entities. The incentive is to increase collections by whatever legal means, and this involves knowing which loopholes to use, rather than relying on good medical care and acting in the interest of the patient. No other nation has the insurance industry so entrenched in health care. The insurance industry is largely responsible for our healthcare system, and this is based largely on legalized corruption and greed. When we realize that our system is not the best in the world, we will begin to make progress.

JUANDEMTY Report As Abusive



 

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Its a funny thing in US healthcare - we do the complex incredibly well, but we cant do the simple basics well at all. We can practically cure cancer, but we lose biopsies all the time. Reuters came out with a study echoing this. Atul Gawande is pioneering the idea of checklists in the hospital. Doctors and nurses may not like it, but it is needed. There are so many resources that need to come together for a successful surgery, at the right time, and the right place that is incredibly hard to run things from mental notes anymore. Much like car seats for babies - you are protecting the baby when the drive goes well. You are protecting for that one in a million chance when things go bad. When there are 300 million patients, many more million surgeries, one in a million aint that great of odds anymore.
The report focuses on other basics - early detection and prevention of diseases (a common theme of mine is that the earlier a problem is found out, the cheaper it is to fix and the better the outcome), eliminating fraud (more transparency in all billing will help here), and focusing on best practices.
I like how these are framed as common sense solutions. While I dont know if I believe we can drive $3.6 trillion of waste out solely from fixing these issues, I do believe they are a great place to start to get the ball rolling and quickly.

Posted via web from Suneil Mandava's Posterous

Case of process vs treatment: Why Patients Aren’t Getting the Shingles Vaccine

This is a microcosm of one ofthe big issues in US medicine: we do big expensive treatments well, but not basic fundamentals. In this case, it is reimbursement getting in te way of shingles vaccines that would eliminate the problem for millions of Americans. Instead of spending $100 per person to eliminate the problem, we spend $10,000 - $15,000 and clog up our healthcare system in treating it down the line. In engineering and development there is a rule of thumb: it cost 1x to solve the problem in design, 3x to solve in development and testing and 8x to solve the problem once deployed. I would have to think it's even more exaggerated in medicine when comparing solving at the PCP's office vs when the disease manifests itself and must be treated.

From The New York Times:

DOCTOR AND PATIENT: Why Patients Aren’t Getting the Shingles Vaccine

Most doctors recommend immunizations against flu and pneumonia for older patients, but they do not do the same with the shingles vaccine.

http://nyti.ms/aU6Nup

Posted via email from Suneil Mandava's Posterous

Don't boycott BP stations. Just hurting family run biz. We must continue to reduce need for oil overall

From The New York Times:

YOUR MONEY: Punishing BP Is Harder Than Boycotting Stations

Telling oil companies that you’re not going to take it anymore requires a change in lifestyle.

http://nyti.ms/cZ1fhh

Posted via email from Suneil Mandava's Posterous

No spin from the Coast Guard: Cap Said to Recover 10,000 Barrels of Oil a Day

From The New York Times:

Cap Said to Recover 10,000 Barrels of Oil a Day

The increase indicated engineers are making some progress in stanching the flow, Thad W. Allen of the Coast Guard said.

http://nyti.ms/9HTrfV

Posted via email from Suneil Mandava's Posterous

Great Firewall gets 4Square: China Blocks Foursquare After Users Check in to Tiananmen Square

Thanks, John: Former UCLA basketball coach John Wooden dies

Hospitals leaving items in patients after surgery - Is RFID the answer?

Drill bits, screws, sponges, clamps, needles, catheters, electrodes. These are some of the things accidentally left inside patients after surgery at California hospitals.

These instances are referred to as "never" events, meaning they are never supposed to happen. But even though they are reported in a small percentage of surgeries, they occur with alarming regularity.

Surgical equipment inadvertently left inside patients after procedures and operations accounts for the second-most-common preventable adverse event in acute care, behind serious pressure ulcers, or bed sores.

In the latest fiscal year, California hospitals reported 197 cases of "retained foreign objects" for a total of 350 incidents over the past two years. They accounted for 14 percent of all preventable errors reported during those two years. That's out of 2,446 adverse events reported in California from July 1, 2007, through Dec. 31, 2009, according to the state Department of Public Health.

In 29 of the cases involving a retained foreign object, the state deemed the problems serious enough to issue fines, according to public health officials. Three years ago, a new law gave state public health officials the authority to issue administrative penalties for violations that put patients at risk of death or injury.

Reducing mistakes

The state intends to use $800,000 of the almost $3 million in such hospital fines that have been collected since 2007 to research how to help hospitals reduce their chances of leaving objects behind after a surgery or procedure. The funds have been approved, but will not be available until after a state budget is signed.

"We really want to drive change. Penalties are one way of driving this change," said Kathleen Billingsley, deputy director of the state public health department's Center for Health Care Quality.

Billingsley said that many hospitals have begun making significant improvements to their quality systems in response to their mistakes.

San Francisco General is one such hospital. This year, the hospital was hit with a $25,000 fine for a 2008 case in which a surgical sponge, the most common object left behind after any procedure, was discovered in a patient three months after she had endured more than eight hours of surgery to treat two types of cancer.

The surgery required two surgical teams to remove the patient's uterus, fallopian tubes and ovaries, to resection her bowel and colon and to reduce the size of the tumor. There were complications of massive bleeding, and the surgery had to be conducted in two stages over the course of a couple of days.

The surgical teams conducted a routine counting of equipment after the operation, but missed a 4-by-8-inch piece of surgical sponge that had been used to stanch the bleeding. It was later removed, and the patient, who the hospital will not identify because of privacy laws, continues to seek care at the hospital.

"This was a very unfortunate incident and, whether or not there was a fine involved, we would have addressed this very seriously," said Dr. Todd May, chief of the medical staff for San Francisco General.

The health implications of leaving items in patients' bodies varies widely depending on the patient and other complications.

May said the case motivated the hospital to make several key changes. For one, the hospital no longer uses sponges that small for abdominal surgeries. Now patients who undergo surgeries identified as high risk for a retained object undergo a low-dose X-ray to detect anything left behind. Sponges used in those procedures now have a special strip that will show up on the scans.

Inspection before closure

Under San Francisco General's revised policies, any member of a surgical team, including all nurses and technicians, are required to examine the incision before closure and permitted to call for an instrument recount at any time. The hospital has had no further incidents of retained foreign objects.

Other techniques being explored by hospitals include radio-frequency detection systems and bar codes on the equipment, said Dr. Niraj Sehgal, UCSF associate professor in hospital medicine and the associate chairman of quality and safety in the department of medicine.

While some solutions seem simple, no one solution works for all hospitals, Sehgal said. While some technologies can decrease the likelihood of error, medicine is practiced by humans.

"There's an element there that still relies on a human to be perfect," he said, "and humans are not perfect."

The federal government also has begun to focus on "never" events. In 2008, the Centers for Medicare and Medicaid stopped reimbursing hospitals for the cost of caring for patients who experienced "never" events such as retained foreign objects after surgery. The theory is that hospitals shouldn't be paid twice for preventable errors - once for the initial procedure, and again for the follow-up treatment to correct the error.

Since 2007, California has issued 156 administrative penalties to 108 hospitals. These penalties carry fines of $50,000 for the first violation, $75,000 for the second, and $100,000 for the third or subsequent violations at the same hospital.

So far, $4.8 million in penalties has been assessed and $2.9 million has been collected.

Hospitals can appeal the fine by requesting a hearing, but they still must submit a plan to the state explaining how they intend to correct the problem.

'It's unfair and unsettling'

An attorney who represents hospitals that have appealed penalties accused the state of "terrorizing" hospitals.

"There's no statute of limitations, no criteria. You can get a letter a year later saying we're fining you $50,000 for a retained foreign object you reported a year earlier," said Mark Kadzielski, head of the West Coast health care practice for Fulbright & Jaworski. "It's unfair and unsettling to hospitals."

Officials from the California Hospital Association, a trade group that represents more than 400 hospitals statewide, acknowledged that the public reporting of the fines is difficult for hospitals, but they generally support the state's efforts to reduce the number of preventable mistakes.

"We all share the same goals," said Debby Rogers, vice president of quality and emergency services for the hospital group. "Using those funds to focus back on hospitals and areas we can approve is a great idea."

E-mail Victoria Colliver at vcolliver@sfchronicle.com.

This article appeared on page A - 1 of the San Francisco Chronicle

When we started Mobile Aspects, we looked closely at this problem. In discussing with several physicians and hospitals, a few conversations pointed us in the direction of solving the problem of surgical instruments and other items left in patients. We decided not to pursue this route for several business and technological reasons. However, I know of a few companies solving this problem with RFID (including another Pittsburgh based company called ClearCount). I tend to think RFID should be used in hospitals where it will solve patient safety and workflows issues AS WELL AS generate actionable data. However, this maybe a rare case where just having the former is good enough.

Posted via web from Suneil Mandava's Posterous

BP and Exxon share prices after oil spills: | The Economist

Happy w/ new AT&T data plans - my iPhone data usage has fallen >50% with addition of iPad 3G

iPhone and iPad data plan changesPaul Sakuma/Associated Press The iPad and iPhone will be affected by AT&T’s latest data changes.

AT&T announced Wednesday that it will start offering metered data plans for mobile device users rather than a $30 all-you-can-use monthly plan.

For people who use less than 200 megabytes of data a month, the price of the new plan is effectively cut in half.

The latest announcement could signal the beginning of a new arms race between mobile phone carriers. In the past, carriers tried to woo customers by offering mobile packages that were gauged by the number of voice minutes available each month. But as my colleague Jenna Wortham wrote last month, people are talking on mobile phones less as data usages continues to rise.

AT&T also announced a new service that will let smartphone users tether their device, including the iPhone, to a computer and use the phone to access the Internet as a modem. The tethering feature will cost an additional $20 a month. Apple iPhone users have long requested that service.

The lowest-priced data option is called DataPlus and will cost $15 a month. It gives mobile phone subscribers access to 200 megabytes of data each month enough to send and receive 1,000 e-mails without attachments and an additional 150 with attachments. The plan would also offer access to 400 Web pages, the ability to post 50 photos to social Web sites and watch up to 20 minutes of streaming video through the mobile phone.

AT&T said in a press release that 65 percent of AT&T smartphone customers use less than 200 MB of data per month on average. If DataPlus users go over the allotted 200 megabytes in a single month they will have the option to purchase an additional 200 megabytes for another $15.

DataPro, the next step up, provides 2 gigabytes of data a month to a single phone for $25 a month. AT&T says, on average, 98 percent of its current mobile customers use less than 2 gigabytes of data each month.

The DataPro option will allow mobile phone customers to send and receive 10,000 e-mails without attachments and 1,500 e-mails with attachments. In addition, users will be able to view 4,000 Web sites and post up to 500 photos online through their phone. They will also be able to watch three hours of streaming video. If a DataPro subscriber goes over the 2 gigabytes, they will be able to purchase an additional gigabyte for $10.

The tethering feature is only available to the DataPro customers.

The service changes will go into effect on June 7 with the expected release of the iPhone’s new operating system, iPhone OS4.

Although the $30-a-month unlimited data plan will be eliminated, existing AT&T customers will have the option to be grandfathered in to their existing monthly charge.

IPad users will be affected by the service changes too. AT&T said that new iPad customers will have the option to purchase a $25 monthly plan for access to 2 gigabytes of data. This will replace the $29.99 unlimited access option currently offered for the iPad.

I have been using my iPad 3G since launch day in the US 6 weeks ago - the readers of this blog know I love it. But an amazing thing happened - my iPhone data usage has fallen through the floor! I have gone from over 400MB / month to under 200 MB. Additionally, whereas previously I bought the Moxie case for my iPhone to double battery life, now I never go below 50% on the battery. This is all because my data usage has been transferred to the iPad. I am happy that Apple is allowing me to grandfather in my $29.99 / month unlimited data plan for iPad because i guzzle data on that device (but still nowhere close to some people I have read about).
The news plans from AT&T will save me $30 / month ($15 x 2 iPhones in my family, with two more daughters coming of age shortly). But I am sure it will be copied by Verizon to save everyone money.

Posted via web from Suneil Mandava's Posterous