Intel, AMA to put patient records online

The Nasdaq Composite Index zigzagged in and out of record territory as technology shares continued to surge today.

The Dow Jones Industrial Average slumped 106.38 to 10,541.8, and the technology-heavy Nasdaq gained 3.84 points to 2,919.79. Yesterday the Nasdaq gained 29.38 to close at a record 2,915.95. The CNET Tech Index shed 4.32 to 2,248.4 this morning.

Intel, which will report its earnings today after the close of the market, added another 2.81 to 79.31. The chipmaker was the most heavily traded stock on the Nasdaq this morning, with 4.3 million shares changing hands.

Motorola, also set to announce earnings later today, climbed 1.13 to 97.75.

Apple Computer jumped 2.25 to 68.93. The maker of the iMac and iBook is set to report earnings tomorrow after the close of the market.

Microsoft shed 0.32 to 94, and Cisco Systems dropped 0.32 to 72.13.

Dell Computer and Compaq Computer both headed higher, rising 0.19 to 45.75 and 0.94 to 22.81, respectively.

A privacy advocacy group filed a lawsuit today hoping to force the Federal Trade Commission to disclose records about privacy complaints received by the government agency.

The Electronic Privacy Information Center (EPIC) filed the lawsuit in the U.S. District Court in Washington, contending that the consumer protection agency has failed to take action on the many privacy complaints that the agency has received from consumers.

"A large part of the privacy debate in the last couple of years has centered around industry claims that there are adequate systems in place to deal with privacy problems, and the FTC has always been identified as the agency that is set up to handle them," said David Sobel, general counsel for EPIC. "This is an attempt to monitor what is going on at the FTC in response to privacy problems, and in effect to test the claims that we have an adequate system in place."

The advocacy group said that if the FTC has no effective ways to respond to privacy complaints or public concerns, then more aggressive steps should be taken.

An FTC spokeswoman said the commission is working on a response to EPIC's request.

"Our freedom of information office is in the process of responding to EPIC's request," said FTC spokeswoman Victoria Streitfeld.

The FTC said it has to segregate complaints that are part of an existing or potential investigation because such complaints will not be released.

"We also have to redact any personal information from the complaints," Streitfeld said. "It is a time-consuming process, but we are in the process of doing that."

EPIC filed the initial information request under the Freedom of Information Act on June 10, 1999. In a letter to the commission, EPIC requested "copies of all records concerning the FTC's investigation of privacy complaints." The request included letters, email, Web submissions, faxes, and formal complaints.

EPIC said the FTC has responded only informally by telephone. The FOIA mandates that government agencies respond to requests within 20 working days. A provision in the act allows agencies to withhold information about specific individuals if it is necessary to protect their privacy.

But EPIC told the commission it was interested in "records regarding alleged privacy violations by a specific company or organization and requests for general assistance in a privacy matter, whether or not a specific company or organization is indicated."

Sobel said EPIC has received no written confirmation of the request and has been told by the FTC that it doesn't have a system in place for tracking privacy complaints, making it difficult to respond to the FOIA.

"We think that that in itself is telling that apparently there is no systematic way at the FTC to track consumer privacy complaints," Sobel said. "That suggests they are really not currently equipped to deal with the issue."

At a Senate hearing in July, EPIC director Marc Rotenberg criticized a report from the FTC on Internet privacy, saying it failed to provide any actual information about consumer privacy complaints or the effectiveness of industry programs to protect privacy. Intel has teamed up with the American Medical Association to provide physicians and consumers software that will allow them to securely access and exchange patient records online.

The alliance, as earlier reported by CNET News.com and announced today at Intel's Internet Health Day event in New York, will focus on creating so-called digital credentials that Intel and the AMA plan to eventually distribute to health Web sites, physicians, and consumers. Digital credentials are a piece of encrypted software that helps verify a person's identity to Web sites. Intel also announced that it has created a new Internet Authentication Services unit to develop these credential services.

Health care has the potential to be a huge online industry, and companies such as Healtheon and Medquist already have entered the space. But many privacy experts regard health information as being among the most sensitive information that can be distributed, requiring companies to safeguard that data. Digital credentials like those developed by Intel help ensure that only authorized physicians, insurers, and consumers can access a patient's medical transcripts or other health records.

"If you're buying a book online, it's not critical that I know your ID," said Mariah Scott, manager for Intel's authentication services unit. "If you're talking about accessing your health records online, you really need to know that this is a physician," Scott said.

Intel is not alone in developing authentication software. VeriSign, Network Associates, and Entrust, among other companies, are involved in developing digital certificates that verify a user's identity. But much of the digital certificate effort to date has centered on financial transactions.

Intel said that Healtheon-WebMD and Franklin Health have all signed on to use the new software. Physicians will be able to use digital credentials to store and view patient charts through MedQuist, and consumers will be able to use them to update their health information on WellMed's WellRecord.

Scott said Intel already is prototyping the authentication service with a small group of physicians from the AMA and is beta-testing it with Healtheon-WebMD and WellMed. She said the company plans to fully bring out the service early next year.

Physicians will be able to obtain a digital credential through the AMA, Scott said; although Intel and the AMA are still deciding on the mechanics of the enrollment process.

Intel also is planning to extend its authentication services into other Internet and e-commerce areas, Scott said.

"Our first focus is health care, but we think these authentication services are applicable to a number of other businesses," she said.