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CBO says EMRs won't save as much as hoped

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A new report from the Congressional Budget Office (CBO) suggests that without large changes in the healthcare delivery system, EMRs can't cut healthcare costs substantially. This will come as a bit of a shock to both federal legislators and presidential candidates, many of whom have run around claiming that implementing EMRs could all but reform the healthcare system singlehandedly. The projections come as part of a larger CBO report looking at larger patterns in healthcare spending. Peter Orszag, the CBO's director, argues that EMRs will indeed be helpful, at least in pulling together a clinical database that could be used for comparative effectiveness research, but that ROI on EMR implementations won't be "as substantial as people think."

Now the question is whether assorted members of Congress and varied presidential hopefuls are going to change their tune, or simply come up with proposals that could make returns on EMR investment more attractive (tax credits and other financial supports being an obvious example).

To find out more about this research by the CBO:
- read the report (.pdf)
- read this iHealth Beat piece

Related Articles:
Case study: EMR paid for itself in 16 months. Report
Study: Physicians at EMR "tipping point." Report
Money is not the problem. Editorial
Study: E-health offers 2:1 return on investment. Report

Comments

People, Process and Technology must be viewed together. EMR systems represent technology. Without evaluating the processes and the organization with the technology, you are just automating the existing paper based processes.

EMR implementation presents organizations with a real opportunity to revolutionize their operations, but only when the EMR comes with process engineering folks along side the coders.

I couldn't agree more.  After all, it's hard to imagine how an EMR platform could re-engineer behavior all on its own. Sure, it can *influence* behavior, but that's not going to be enough to transform the healthcare system. However, it's looking like politicians and policymakers are pretty attached to the notion that it can.

I wish the CBO faculty read FierceHealthcare. Over the past two years I have cried hoarse about the poor utility of currently available CCHIT certified EMRs for typical medical practices.
AGAIN:
1) If the products DO NOT ENHANCE PATIENT CARE or BOTTOM LINE no one will use them. You just need to use these products to know how badly they are designed. You do not need a controlled clinical trial to say something stinks...
2)If the products DO NOT adapt to the workflow of the user or is riddled with pull down and pull-up menus, people cannot and will not use them.
3) Learn from the mistakes of big three auto makers. You cannot sell lousy products for ever with government regulation. If the product does not suit the users they will dump it in a hurry.
4) I'd be very happy to welcome serious EMR company designers to our practice to explain to them why their products will NOT work in real life. I can also demonstrate to them what an adaptive medical records system is. My practice depends on instant information availability at any point of service. I cannot do it with the current breed of EMRs.

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