Medical Industry to Save Billions

According to a recently released Rand study, the move to computerized medical records stands to save the United States more than $81 billion annually by providing greater efficiencies and reducing errors. More specifically, the report estimated that if 90 percent of doctors and hospitals adopted health-information technology, the improved efficiencies would save roughly $77 billion annually, with an additional $4 billion in savings coming from improved safety, mainly through lowering prescription errors.

The study also found that 20 percent to 25 percent of hospitals and 15 percent to 20 percent of physicians' offices have moved to computerized records, yet they are still limited when it comes to sharing information. Moving forward, the study pushes for the federal government to speed up technology-standards initiatives to encourage more widespread adoption. The study also recommends that the federal government use financial incentives, such as increasing Medicare payments to providers using electronic-records systems and grants to institutions embracing the technology.

The price tag for going electronic would run U.S. hospitals approximately $98 billion and physicians some $17 billion, averaging out to $7.7 billion per year over a 15-year adoption period, according to the study. In terms of the benefits for adopting electronic health records, the Rand study cites how computerized systems could help doctors identify patients at risk and suggest preventive treatment. Further, it enables patients using remote monitors to transmit information from home to medical providers for a quicker response. Short-term medical care could also be improved by having these systems remind doctors to provide certain services during routine visits and encourage patients to schedule visits for other services.