Can Electronic Medical Record Systems Transform Health Care? Potential Health Benefits, Savings, And Costs

• Published in: Health Affairs Vol. 24; no. 5; pp. 1103 - 1117
• Main Authors: Hillestad, Richard, Bigelow, James, Bower, Anthony, Girosi, Federico, Meili, Robin, Scoville, Richard, Taylor, Roger
• Format: Journal Article
• Language: English
• Published: United States Health Affairs 01.09.2005; The People to People Health Foundation, Inc., Project HOPE
• Subjects: Aged; Ambulatory care; Chronic illnesses; Clinical decision making; Community health services; Cost benefit analysis; Cost control; Cost Control - economics; Costs; Delivery of Health Care - economics; Delivery of Health Care - organization & administration; Diffusion of Innovation; Disease management; Disease prevention; Efficiency; Efficiency, Organizational; Electronic health records; Estimates; Health care; Health care expenditures; Health care industry; Health Expenditures - trends; Hospitals; Humans; Information technology; Maintenance costs; Medical errors; Medical records; Medical Records Systems, Computerized; Middle Aged; Monte Carlo simulation; Quality of Health Care; Safety management; Studies; United States; United States; United States > US
• ISSN: 0278-2715; 1544-5208
• DOI: 10.1377/hlthaff.24.5.1103

To broadly examine the potential health and financial benefits of health information technology (HIT), this paper compares health care with the use of IT in other industries. It estimates potential savings and costs of widespread adoption of electronic medical record (EMR) systems, models important health and safety benefits, and concludes that effective EMR implementation and networking could eventually save more than $81 billion annually--by improving health care efficiency and safety--and that HIT-enabled prevention and management of chronic disease could eventually double those savings while increasing health and other social benefits. However, this is unlikely to be realized without related changes to the health care system.