Congressional Budget Office questions whether health information technology really saves money
Patient Safety Monitor Alert
May 28, 2008
The Congressional Budget Office (CBO) released a report lat week questioning projections that investments in health information technology (HIT) would help save healthcare companies money, reports The Wall Street Journal. Health Information Technology refers to electronic medical records for a hospital or community, among other modes. A Rand Corporation analysis predicted an average annual savings of $77 billion for the entire industry, a prediction which is just not true, says the CBO.
The CBO did not refute that in certain circumstances, incorporating the use of HIT into daily practices can save the healthcare industry money. However, HIT alone will not brings costs down, the report says. As of 2006, only 11% of hospitals were using HIT, according to a CBO report. HIT has been widely endorsed as a method of cutting down costs and increasing patient safety.
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