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Prepare your office for Y2K
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By now, you have undoubtedly heard about the “Y2K problem.” Why are people fearing that computers will break down in the year 2000? Most computers use dates represented by only two digits (i.e., 91 instead of 1991) to save valuable storage space. When the year 2000 rolls around, the computers will incorrectly interpret 00 as 1900 or will refuse to recognize the date at all and shut down. This is commonly called “the Y2K problem” or “the millennium bug.” Time is running short to prepare your office for Y2K.
A Senate Committee report quoted in the Feb. 24, 1999, issue of the Wall Street Journal stated that a Gartner Group study indicated that 64% of hospitals and 90% of doctor’s offices have no Y2K plan. Naturally, no one can predict the extent of the problem; however, as business owners we should do our best to prepare for an event that can threaten our practices.
More than computers
“Fine,” you say, “I’ll check my computers and be done with it.” Much has been published about how to make your PCs Y2K compliant by testing your computer’s hardware (the BIOS and real time clock), the operating system (Windows 3.1, 95, 98, etc.) and your business applications (practice management software, etc.). Unfortunately, it is much more complicated than that. Devices with faulty, embedded computer chips now surround us. These embedded chips are not always easy to locate.
The first step you need to take to prepare your office is to locate as many of these embedded chips as possible. The best place to start is to make an inventory of all medical instrumentation that may contain such chips. You should suspect any device that tracks the date, day of the week or patient’s age or date of birth. Now, make an inventory of all nonmedical office devices that you suspect may contain embedded chips.
Once you have located all potential devices, then begins the arduous task of learning if they will function in the year 2000, that is to say, if they are “year 2000 compliant.”
Many companies have posted compliance information on the World Wide Web, and this is a good place to start your research. Otherwise, you will need to write the manufacturers and request this information.
Leave a paper trail
Legal experts tell us that when you contact the manufacturers, you must leave a detailed paper trail. Because of the potential liability to business owners (such as optometrists), you must prepare for litigation, both on the defensive and offensive.
After learning the compliance status of your instrumentation, you will need to decide whether to replace, repair or retire your noncompliant equipment. Prioritize your needs, and keep in mind that most optometrists will not need to spend more than $1,000 to become Y2K compliant; only a few may need to invest as much as $5,000. Those offices with 386- or 486-based computers will probably want to upgrade them and will most likely find their level of spending to be at the upper end of the range.
A major source of angst for optometrists is our dependence on other parties. For example, we depend upon suppliers of optical goods, laboratories and third-party insurance companies. Therefore, we must also contact these companies and determine their compliance status. Any weak link in our fragile supply chain could potentially be problematic for our offices. Obviously, some things are not essential for our success (who cares if the VCR in our waiting room flashes “12:00” for a while?). But how long would you be willing to wait to be paid by insurance companies? Or if your utilities were not working, how would you pay your staff while the office was closed?
Y2K preparedness
You may have already received letters from businesses that are essential to your success, disclosing their Y2K preparedness. If not, you will want to inquire as to their compliance. Again, do so in writing and keep a good paper trail of your efforts. Any business that cannot convince you of its preparedness may need to be replaced with another vendor.
Next, legal experts tell us to “disclose and disclaim.” That is, you will want to disclose to your patients that you are addressing Y2K compliance, and keep them informed of your progress. However, you must also explain to them that you are dependent upon other vendors who may or may not live up to their promises of compliance. You can include this statement in a newsletter or a posted notice in your office. Be sure to educate your staff so they can answer any patient questions.
Most experts believe that the legal exposure of optometrists to damages is minimal. Although this is good news, if you are depending upon insurance to cover you for Y2K-related damages, you may need to think again. Business interruption insurance doesn’t usually cover problems due to computer failure. In addition, many insurance companies are notifying their customers that they will exclude personal liability claims due to Y2K (they will usually give you 60 days notice of this decision). The Chicago Tribune stated that regulators in 42 states have approved new clauses for general liability policies that would make such exclusions (Chicago Tribune, June 29, 1998).
Although no one knows with certainty what the global economic impact of the millennium bug will be, everyone agrees it will be an expensive problem to fix. When legal fees and damage awards are added to the costs of addressing the Y2K problem, we may have spent a total of 1.6 trillion dollars.
Economist Dr. Edward Yardeni recently raised his estimate of the likelihood of a Y2K-induced, severe global recession to 70%. One reason for this high estimate is that small businesses have been largely unprepared to deal with the Y2K problem. A survey of 500 companies conducted by Wells Fargo Bank in April 1998 found that although 80% of companies employing fewer than 100 people were aware of the issue, approximately 50% had no plans to address it. They concluded that as many as 330,000 small businesses may have to close until the problem is fixed. U.S. small businesses had $750 billion in revenue last year, accounting for 40% of the U.S. gross domestic product. Any loss of small business revenue will be felt worldwide.
For this reason, most small business owners are preparing financially and emotionally for the possibility of an economic downturn in the first few months of the year 2000. You may want to minimize any new debts or expenses in the first quarter of the new millennium.
Your personal life
Although there is much speculation on the extent of the possible influence in our day-to-day lives, common sense tells us that somewhere, sometime, there will be a failure. Whether that failure occurs in our utilities, telephones, water supply, traffic lights or nuclear reactors is yet to be seen. Therefore, part of your preparation for the millennium bug should include an evaluation of your home and personal life. As in your office, the source of problems may be embedded chips and our dependence upon companies with these chips.
Public reaction to the fear of Y2K may be the worst risk factor for disaster. If banks, for example, are fully prepared, but people don’t believe them, customers may pull out their cash just to be safe. If many people react in this way, or if enough businesses fail, we may experience a global recession. Additionally, if enough people are concerned about our water supply or food supply and they all begin stockpiling, we may induce a short-term shortage of some supplies.
Public opinion of the dangers of Y2K ranges from those who have purchased cabins out in the country in an effort to become self-reliant to those who are expecting only minor inconveniences. The best chance we have of ensuring the latter is to prepare for the millennium bug and its potential legal fallout.
| Medical Instrumentation That May Contain Embedded Chips:
| Nonmedical Office Devices That May Contain Embedded Chips:
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| Some Common Web Sites for Ocular Instrumentation and Eye Care-Related Businesses:
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For Your Information:
- Diana Driscoll, OD, and Rich Driscoll, OD, are in practice together in Colleyville, Texas. They can be reached at 5005 Colleyville Blvd., Suite 120, Colleyville, TX 76034; (817) 656-5222; fax: (817) 656-5510; e-mail: DDriscoll@TotalEyeCare.net and RDriscoll@TotalEyeCare.net. Drs. Driscoll have a direct financial interest in the Y2K kit for eye care practitioners and are owners of Priority Consultants Inc.
- A Y2K kit for optometrists and medical practices is available at www.Y2KsmallBusinesshelp.com and (888) 355-7323. The kit contains a concise and easy-to-read manual and testing software for your PC.