Question
Health Care > Healthcare Information Technology > Reduce Health Care Costs
Save $120 billion in healthcare costs through IT efficiency gains and better treatment of chronic conditions
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Background
Efficiency savings result when the same work is performed with fewer resources. If most hospitals and doctors’ offices adopted HIT, the potential efficiency savings for both inpatient and outpatient care could average over $77 billion per year. The largest savings come from reduced hospital stays (a result of increased safety and better scheduling and coordination), reduced nurses’ administrative time, and more efficient drug utilization.
The U.S. healthcare system is in trouble. Despite investing over $1.7 trillion annually in healthcare, we are plagued with inefficiency and poor quality. Better information systems could help. Most providers lack the information systems necessary to coordinate a patient’s care with other providers, share needed information, monitor compliance with prevention and disease-management guidelines, and measure and improve performance. Health Information Technology (HIT) includes a variety of integrated data sources, including patient Electronic Medical Records, Decision Support Systems, and Computerized Physician Order Entry for medications. HIT systems provide timely access to patient information and (if standardized and networked) can communicate health information to other providers, patients, and insurers. Creating and maintaining such systems is complex. However, the benefits can include dramatic efficiency savings, greatly increased safety, and health benefits.
[RAND Corporation - http://www.rand.org/pubs/research_briefs/RB9136/index1.html]
Disease management (DM) is the concept of reducing healthcare costs and/or improving quality of life for individuals with chronic disease conditions by preventing or minimizing the effects of a disease, or chronic condition through integrative care. DM is also often known as: care management, health management programs, or disease self-management.
Disease Management has evolved from managed care, specialty capitation, and health service demand management, and refers to the processes and people concerned with improving or maintaining health in large populations. As opposed to epidemiology, which is generally concerned with sudden or persistent virulent outbreaks of disease, Disease Management is concerned with common chronic illnesses, and the reduction of future complications associated with those diseases.
Illnesses that Disease Management would concern itself with would include: Coronary heart disease, kidney failure, hypertension, heart failure, obesity, diabetes, asthma, cancer, arthritis, clinical depression, and other common ailments.
In the United States, Disease Management (DM) is a large industry with many vendors. DM is of particular importance to health plans, agencies, trusts, associations and employers who offer health insurance. A Mercer Consulting study indicated that the percentage of employer-sponsored health plans offering disease management programs grew to 58% in 2003, up from 41% in 2002.
see more on Wikipedia
Healthcare in the U.S. has significant publicly funded components. Medicare covers the elderly and disabled with a historical work record, Medicaid is available for the poor, and the State Children's Health Insurance Program covers children of low-income families. The Veterans Health Administration directly provides health care to U.S. military veterans through a nationwide network of government hospitals. Eligibility is determined by Priority Groups. Retirees and those with service-connected injuries are within the higher priority groups, while non-injured veterans may become eligible based on financial need (reference eligibility Priority Groups). Current servicemen and women are provided care at military facilities while on active duty. Reservists also have access to care while on active duty. Family members of full-time active duty personnel are covered under CHAMPUS (Civilian Health and Medical Program of the Uniformed Services). Together, these tax-financed programs cover about 27% of the population and make the government the largest health insurer in the nation.
see more on Wikipedia
The U.S. healthcare system is in trouble. Despite investing over $1.7 trillion annually in healthcare, we are plagued with inefficiency and poor quality. Better information systems could help. Most providers lack the information systems necessary to coordinate a patient’s care with other providers, share needed information, monitor compliance with prevention and disease-management guidelines, and measure and improve performance. Health Information Technology (HIT) includes a variety of integrated data sources, including patient Electronic Medical Records, Decision Support Systems, and Computerized Physician Order Entry for medications. HIT systems provide timely access to patient information and (if standardized and networked) can communicate health information to other providers, patients, and insurers. Creating and maintaining such systems is complex. However, the benefits can include dramatic efficiency savings, greatly increased safety, and health benefits.
[RAND Corporation - http://www.rand.org/pubs/research_briefs/RB9136/index1.html]
Disease management (DM) is the concept of reducing healthcare costs and/or improving quality of life for individuals with chronic disease conditions by preventing or minimizing the effects of a disease, or chronic condition through integrative care. DM is also often known as: care management, health management programs, or disease self-management.
Disease Management has evolved from managed care, specialty capitation, and health service demand management, and refers to the processes and people concerned with improving or maintaining health in large populations. As opposed to epidemiology, which is generally concerned with sudden or persistent virulent outbreaks of disease, Disease Management is concerned with common chronic illnesses, and the reduction of future complications associated with those diseases.
Illnesses that Disease Management would concern itself with would include: Coronary heart disease, kidney failure, hypertension, heart failure, obesity, diabetes, asthma, cancer, arthritis, clinical depression, and other common ailments.
In the United States, Disease Management (DM) is a large industry with many vendors. DM is of particular importance to health plans, agencies, trusts, associations and employers who offer health insurance. A Mercer Consulting study indicated that the percentage of employer-sponsored health plans offering disease management programs grew to 58% in 2003, up from 41% in 2002.
see more on Wikipedia
Healthcare in the U.S. has significant publicly funded components. Medicare covers the elderly and disabled with a historical work record, Medicaid is available for the poor, and the State Children's Health Insurance Program covers children of low-income families. The Veterans Health Administration directly provides health care to U.S. military veterans through a nationwide network of government hospitals. Eligibility is determined by Priority Groups. Retirees and those with service-connected injuries are within the higher priority groups, while non-injured veterans may become eligible based on financial need (reference eligibility Priority Groups). Current servicemen and women are provided care at military facilities while on active duty. Reservists also have access to care while on active duty. Family members of full-time active duty personnel are covered under CHAMPUS (Civilian Health and Medical Program of the Uniformed Services). Together, these tax-financed programs cover about 27% of the population and make the government the largest health insurer in the nation.
see more on Wikipedia
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