Health IT unlikely to generate big cost savings, CBO says

For years, researchers have argued over whether EMRs actually save money, with studies reaching different results depending on whether they looked at inpatient or outpatient care, small, mid-sized or large medical practices, and rural or big-city health systems.

Government researchers have been perhaps a tad more optimistic, though late last year, a report from the Congressional Budget Office suggested that without large charges in the healthcare delivery system, EMRs wouldn't generated many cost reductions [1]. Now, the CBO has gotten tougher. In a follow-up report issued last week, the it strongly challenged an estimate issued by RAND Corp., holding that health IT could save $77 billion a year. "By itself, it's generally not sufficient" to cut costs at all, CBO Director Peter Orszag said.

The question, now, is whether the CBO's challenges to savings estimates will derail current health IT initiatives on the Hill. Apparently, Hill watchers are still likely to push ahead with measures integrating e-prescribing into Medicare, but other efforts could be thrown into question.

To learn more about the effort of the CBO's report:
- read this Wall Street Journal article [2] (sub. req.)

Related Articles:
Research finds EMR benefits, savings unclear [3]
Case study: EMR paid for itself in 16 months [4]
CBO says EMRs won't save as much as hoped [1]