The debate goes on about the cost benefits of EHR software and whether it really lives up to the hype. A number of recent studies address this very question as the focus shifts towards lowering patient costs. According the HealthIT.gov, EHR requires both a financial and time investment but the benefits make it worthwhile. A limited number of studies support this claim, however. Most are finding the effects on patient costs are more negligible than you might realize.
Short-Run Benefits
A 2013 study by researchers at the University of Michigan found there was limited short-run impact in one EHR pilot program. Julia Adler-Milstein, assistant professor at the University of Michigan’s School of Information, looked at ambulatory medical costs for patients on Medicaid getting care in one of three Massachusetts eHealth communities.
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
The results were inconsistent. EHR implementation influenced ambulatory costs in just two out of three test arenas. The two that did show variation moved in opposite directions. The team’s conclusion was adaption could increase or decrease Medicaid costs in the short-run. Future meaningful use criteria that targets cost savings and coordinates with payment reform could change that trend, however.
Positive Results for Canada
A 2013 study conducted by PricewaterhouseCoopers for EHR Intelligence offered the most promising news. This study commissioned by Canada Health Infoway looked at EHR adoption in family practice settings. The researchers collated data to determine how much EHR saved the Canadian universal health care program. They found:
- EHR promotes greater administrative efficiency – This saved the Canadian government just under 800, 000 US dollars.
- EHR reduces care redundancies to the tune of over 560,000 US dollars with fewer duplicate tests and a reduction is adverse drug reactions
The group estimated that in just one year, the government saved almost 300,000 dollars. EHR software means better preventative services and improved communication. Canadian physicians gave the new system two thumbs up claiming it allowed them to coordinate patient care and provided faster test results.
Improved Management of Chronic Disease
Chronic disease is a primary contributor to the escalating health costs facing the nation. A 2012 study published by researchers at the University of California‘s Department of Family and Preventive Medicine looked at the cost-effectiveness of electronic medical records in the management of chronic disease, specifically diabetes.
The team input data from randomized clinical trials into a simulation model to evaluate the impact on quality of life and health costs for 1,092 patients. The results were positive for quality of life issues without significantly affecting cost factors. Simply put, using EMR helped patients improve the management of their condition without costing them more money.
Does EHR Really Cut Back on Testing
The assumption is that providing electronic access to medical records will reduce the need for diagnostic testing by cutting back on redundancies. A 2011 Harvard study indicates there is more to it. This team analyzed 28,741 patients seen in 2008. The result showed physicians with access to computerized tests were 40 to 70 percent more likely to order them. The conclusion being that they would require more tests because they had efficient access to the results.
The researchers found that having medical records online did not significantly impact the number of tests ordered. While it does decrease repetition, the rapid availability of test results made physicians more likely to want them.
There is no clear evidence that answers the question does EHR adoption reduce costs? The results show it does lead to more effective and efficient patient care, and that is a positive result in most scenarios. Improving patient care without adding to the cost burden may be enough to help reign in the rising cost of healthcare over time.
