Healthcare information technology effects on cost

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Healthcare information technology effects on cost

Why is it that innovation increases the cost of health care?

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September 5, Health-care costs would drop if we stuck to technologies with proven benefits. As an economist who studies health care, I find it hard to know whether to welcome or fear new technology. Surgeons can replace a heart valve with a plastic and metal one that unfolds once threaded through arteries—repairs that used to be made by cracking open the chest.

Customized cancer drugs hold the promise of making fatal diseases treatable. Even a recent slowdown in spending growth simply postpones the inevitable date when Medicare goes bankrupt.

A patient is positioned to receive proton beam therapy at a facility in Boston. The devices use a beam of radiation to destroy cancer tissue. It may surprise you to learn that economists agree on why the fiscal outlook for health care is so dismal: Improvements in computers provide better products at lower prices, and automobiles are an equally good example: We came up with two basic causes.

Healthcare information technology effects on cost

The first is a dizzying array of different treatments, some that provide enormous health value per dollar spent and some that provide little or no value. The category with the greatest benefit includes low-cost antibiotics for bacterial infection, a cast for a simple fracture, or aspirin and beta blockers for heart attack patients.

Not all treatments in this category are inexpensive. A second category of technology includes procedures whose benefits are substantial for some patients, but not all.

Healthcare information technology effects on cost

Angioplasty, in which a metal stent is used to prop open blocked blood vessels in the heart, is very cost-effective for heart attack patients treated within the first 12 hours. But many more patients get the procedure even when the value for them is less clear.

A third category includes treatments whose benefits are small or supported by little scientific evidence. These include expensive surgical treatments like spinal fusion for back pain, proton-beam accelerators to treat prostate cancer, or aggressive treatments for an year-old patient with advanced heart failure.

Healthcare Information Technology: Effects on Cost Access and Quality - Research Paper

The prevailing evidence suggests no known medical value for any of these compared with cheaper alternatives. And hospitals are loading up on such technology; the number of proton-beam accelerators in the United States is increasing rapidly.

Much of the increase in observed longevity is generated by the first category of treatments. Most of the spending growth is generated by the third category, which the U.

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Unlike many countries, the U. This is why, sincehealth-care spending as a percentage of gross domestic product has grown nearly three times as rapidly in the United States as it has in other developed countries, while the nation has lagged behind in life-expectancy gains.

Other researchers have found that just 0. The nearly complete isolation of both physicians and patients from the actual prices paid for treatments ensures a barren ground for these types of ideas.

When looking at the use of healthcare information technology from an administration standpoint, the question becomes; in what way will the use of such practices produce a worthwhile benefit? The foundation of healthcare delivery consists of three major elements: cost, access, and quality (The Triad)[5]. This paper analyzes the impact of health information technology (HIT) on the quality and intensity of medical care. Using Medicare claims data from , I estimate the effects of early investment in HIT by exploiting variation in hospitals’ adoption statuses over time, analyzing million inpatient admissions across hospitals. Sep 05,  · The Costly Paradox of Health-Care Technology In every industry but one, technology makes things better and cheaper. Why is it that innovation increases the cost of health care? by Jonathan S. Skinner; September 5, ; Health-care costs would drop if we stuck to technologies with proven leslutinsduphoenix.com: Jonathan S. Skinner.

Why should a patient, fully covered by health insurance, worry about whether that expensive hip implant is really any better than the alternative costing half as much? And for that matter, physicians rarely if ever know the cost of what they prescribe—and are often shocked when they do find out.

The implications for innovation policy are twofold. First, we should pay only for innovations that are worth it, but without shutting out the potential for shaky new ideas that might have long-term potential.

Two physicians, Steven Pearson and Peter Bach, have suggested a middle ground, where Medicare would cover such innovations for, say, three years; then, if there is still no evidence of effectiveness, Medicare would revert to paying for the standard treatment.

WHY HAS THE DIGITAL REVOLUTION NOT CONTRIBUTED TO REDUCTIONS IN HEALTHCARE COSTS?

Like many rational ideas, this one may fall victim to the internecine political struggles in Washington, D. For this reason, the best way technology can save costs is if it is used to better organize the health-care system. Doing so requires a greater emphasis on organizational change, innovations in the science of health-care delivery, and transparent prices to provide the right encouragement.

The overall benefits from innovation in health-care delivery could far exceed those arising from dozens of shiny new medical devices.

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The Impact of Technology on Healthcare | AIMS EDUCATION

Join us at EmTech Digital Healthcare Information Technology: Effects On Cost Access And Quality Words 8 Pages It is not unreasonable for a patient to expect particular services from their healthcare providers. In this paper, I analyze the impact of health information technology (HIT) on the costs and quality of medical care, testing whether the technology has demonstrated potential to improve the productivity of the health care sector.

Higher prices and greater use of technology appear to be the main factors driving the high rates of U.S. spending on healthcare, rather than greater use of physician and hospital services, according to a new study from the Commonwealth Fund. Health information technology (IT) systems such as electronic health records and computerized physician order entry hold the potential to improve quality while reducing costs.

In particular, they are designed to improve communication among the disparate providers within a health care organization. Information Technology Medical Position Paper - Healthcare Information Technology: Effects On Cost Access And Quality Essay on Healthcare Information Technology: Effects On Cost Access And Q My Account.

This paper analyzes the impact of health information technology (HIT) on the quality and intensity of medical care. Using Medicare claims data from , I estimate the effects of early investment in HIT by exploiting variation in hospitals’ adoption statuses over time, analyzing million inpatient admissions across hospitals.

The Impact of Technology on Healthcare | AIMS EDUCATION