Will Electronic Medical Records Implementation Save Me Money? | medicalrecords.com
The Obama administration has proposed nearly $50 billion in spending over the next five years for health information technology. This includes nearly $20 billion already approved in the American Recovery and Reinvestment Act of 2009, of which, $1.2 billion is directed as an EMR stimulus exclusively for electronic medical records implementation. Proponents say the investment promises long-term savings for the country and there are reports that there are advantages of electronic medical records that will help physicians and providers too. However, there is little data on savings for patients.
The administration says increased EMR implementation will save the federal government more than $12 billion over the next 10 years while the RAND Corporation, a global policy think tank, estimates savings of about $80 billion a year for the health-care sector when they move towards paperless medical records.
Benefits of Electronic Medical Records
The advantages of electronic medical records as well as the savings, according to RAND, come from “reducing redundant care, speeding patient treatment, improving safety and keeping patients healthier.”
The difference in these numbers can be attributed in part to different assumptions about the future of the health care industry. A 2008 report by the Congressional Budget Office notes that some optimistic estimates rely on a best-case scenario of potential savings that only apply if other changes are made to the health care system in coordination with electronic medical records implementation.
One of the benefits of electronic medical records is the idea that every time a doctor or nurse sees a patient, a whole database of information is instantly available, including allergies, underlying conditions and test results. On a theoretical level this should save patients money by reducing excess treatment. However, there is little data currently available to support that hypothesis.
There are reports that suggest EMR / EHR implementation could bring significant savings for physicians and providers. A 2003 cost benefit analysis published in the American Journal of Medicine estimated that the net EMR benefits for a 5-year period was $86,400 per provider.
EMR Implementation Can Lower Costs Over Time
Another study in 2003 by the University of California focused on solo and small group physicians. It found that although EMR benefits varied greatly, some of the most successful physicians saw savings of up to $20,000 per year. A decline in staff costs was common.
When considering EMR implementation, start up costs cannot be ignored. The University of California study reported initial costs of $15,000 to $50,000 per physician in its focus group. However, government incentives passed in the EMR stimulus bill are targeted to help lower these expenses.
TAKEAWAYS:
There are reports that found that physicians and providers that adopted EMR/EHRs saved significant money.
There is little data available on costs for patients.
Congress has adopted $1.2 billion in EMR stimulus benefits for those that implement EMR/EHRs.