This document discusses the cost-effectiveness of electronic medical record (EMR) systems. It first provides background on rising healthcare costs in the US. Then, it defines what an EMR system is and how it allows fast and secure exchange of patient information. The document summarizes several studies that found EMR systems can improve quality of care while decreasing costs through increased efficiency and reduced errors. It concludes that EMR systems are a step toward reducing healthcare spending while maintaining high quality care.

1. James Caviness
HIMA 5060

2.  Introduction Problem
 Introduction: What is an EMR?
 Background
 Conclusion

3.  The cost of healthcare is still a rising concern in the United States today.
According to the Organization for Economic Co-Operation and Development
(OECD) database, America spent 17.6% of the GDP on healthcare in 2010. It
is estimated that United States spends around $1.3-$1.7 trillion annually on
health care.
 The main goal of the HITECH act is to reduce the cost of healthcare while
maintaining high quality care for patients. A common inquiry about this
piece of legislation is: will using an electronic medical record system be cost
effective?

4.  An EMR system stores information on a database about a patients,
pharmacy prescription, health status, clinical decision support,
insurance, and evaluations/ results of recent visits to a medical
facility. The EMR system allows for fast and secure exchange of
information through electronic transfer to one care facility to
another such as a medical clinic to a hospital. A unique feature that
comes with EMR systems is interface, which allows medical
professionals to put in data from any medical device from IPad to a
PC directly to the database of the EMR.

5.  Multiple studies have shown how cost-effective EMR systems can be
 In a Systematic Review: Impact of Health Information Technology on
Quality, Efficiency, and Costs of Medical Care, their findings showed
out of 257 studies that were reviewed most were in support that
EMR systems are effective and cost efficient. Three major benefits on
quality were demonstrated: increased adherence to guideline-based
care, enhanced surveillance and monitoring, and decreased
medication errors. The primary domain of improvement was
preventive health. The major efficiency benefit shown was decreased
utilization of care (Shinyi, 2006). .

6.  In the study titled “Can Electronic Medical Record System Transform Health Care?
Potential Benefits, Savings, and Costs”. This article in the beginning paragraphs states
the idea that an estimated $142-$371 billon could be saved annually nationwide,
through efficiency and improved patient health outcomes as a result of better
coordination between providers. They concluded that EMR systems will be cost effective
(Health at a Glance, 2003).

7.  “A cost-benefit analysis of electronic medical records in primary care”, the
purpose of the study was to estimate the net financial benefit or cost in
implementing EMR systems in primary care facilities.
 The tornado diagram shows the one-way sensitivity analysis of 5 year-
benefits. The vertical line represents the base and each bar describes the net
benefits varied across the indicated range values. They study concluded that
conversions to the electronic medical record system in primary care can
result in a positive financial investment and be cost-effective (Wang, 2003).

8.  When it comes to solving the economic crisis of health care in the United States,
Electronic Medical Record systems is a step in the right direction. The U.S Government
implementing and passing legislation such as the HITECH act will help reduces the
economic burden.
 They are able to reduce human error and duplicate testing for patients such as MRI’s or
x-rays. Physicians are able to spend more time with patients then worry about
administrative task. It also cuts administrative manpower, which leads in to the
implication of cost-effectiveness. As proven above multiple studies have shown that
Electronic Medical Record Systems are cost-effective in the long run and reduces
healthcare cost tremendously.
 An EMR system is a step in the right direction and more physicians need to convert to
theses systems along with other healthcare settings.

9.  Health O Meter. (2010, May 17). Retrieved from EMR/EHR Compliance:
http://www.homscales.com/aboutus/EMR-EHR.asp
 Shinyi Wu, BasitChaudhry, Jerome Wang, Margaret Maglione, Walter Mojica, Elizabeth
Roth, Sally C. Morton, and Paul G. Shekelle. "Systematic Review: Impact of Health
Information Technology on Quality, Efficiency, and Costs of Medical Care" Annals
of Internal Medicine 144.10 (2006): 742-752.
Available at: http://works.bepress.com/shinyi_wu/6
 Wang, J. (2003). A cost-benefit analysis of electronic medical records in primary
care. The American journal of medicine, 114(5), 397-403. Retrieved from http://
www.sciencedirect.com/science/article/pii/S0002934303000573