Gov. Arnold Schwarzenegger and U.S. Chief Technology Officer Aneesh Chopra joined a diverse group of statewide healthcare and technology agencies Tuesday at the UC Davis Cancer Center in Sacramento to launch the California Telehealth Network (CTN), which is set to be the largest in the nation.

"Our passion for broadband and healthcare is tangible and real and will have a big impact here in California," said Chopra during the announcement. The CTN network will provide both the traditional and advanced IT infrastructure that telemedicine needs for growth, he said.

The network is the result of a $30 million joint funding effort between the Federal Communications Commission (FCC), the California Emerging Technology Fund (CETF), the California HealthCare Foundation, UnitedHealthcare, the National Coalition for Healthcare Integration, the University of California and other private and public entities.

"We're proud to be a partner in the effort to build a robust statewide network that will bring specialized health and medical care to underserved communities, both rural and urban," said Sunne Wright McPeak, president and CEO, California Emerging Technology Fund. "By bringing broadband capacity to those areas in need, CTN is helping to empower individuals to take more responsibility for their own health."

Currently 12 million Californians are still not connected in their homes, says McPeak, who predicts that as soon as patients have access they see quality healthcare improvement. She also points to data showing that telehealth helps reduce the cost of follow-up up care by 40 percent, and reduces overall cost by six percent.

Sharon Gillett, chief, Wireline Competition Bureau, FCC, in an example she said shows what this network will do for rural areas, pointed to the fact that only eight percent of Indian health centers currently have access to the broadband that they need to serve their patients.

Officials said the California Telehealth Network is the largest single-state grant award of its kind, connecting more than 800 California healthcare facilities to a statewide medical-grade network of healthcare and emergency services.

In his remarks, Schwarzenegger said the launch of the network celebrates "the future of medicine, also known as telemedicine" as well as a solution for healthcare reform.

"California is always leading the way with the most innovative and new technology that is changing the future.  And, what we are launching today is a new era for healthcare," said Schwarzenegger. "Through a simple broadband link, this state-of-the-art system will save lives by instantly connecting people from across the state, including underserved and rural areas, with the best and brightest doctors. The California Telehealth Network marks the beginning of a new digital highway that will fundamentally change the future of how healthcare is provided."

The network using broadband will connect healthcare providers, joining 68 other networks in the nation. Officials said CTN will serve as a backbone in establishing telemedicine and eHealthcare, serving as a model as other networks are funded and come onboard.

According to some clinics participating in the Specialty Care Safety Net Initiative, a telehealth demonstration project that connects safety net clinics across California, the only issues they have experienced thus far with the project relate to the quality of the images. They said they are looking forward to the CTN network to resolve these issues. Officials confirmed during the announcement that the network would provide the adequate bandwith for high quality images that are so vital during an emergency situation.
 
"The CTN is a peer-to-peer network which enables providers to share X-rays and other diagnostic tests instantaneously, and view treatments and procedures from afar in distant emergency rooms or surgical centers as they happen," said Sandra Shewry, president and CEO, Center for Connected Health Policy. "The CTN also enables the sharing of information for continuing education/distance learning, disaster preparedness, and access to new technologies – all essential elements for the California healthcare system's growth."

On April 13, AT&T announced an agreement with the University of California to advance the growing practice of telehealth. As part of a three-year, $27 million contract, AT&T is providing Managed Network Services in support of this vital telehealth initiative. 

The CTN is being managed and led by the University of California on behalf of the Governor's office, with guidance from an Advisory Board consisting of experts from state government, rural healthcare, telemedicine and technology. A statewide consortium was initially brought together by the Governor's Office to develop the CTN project and proposal to the FCC.