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National EMR adoption could cost $150B

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How much will it cost to roll out and fully implement EMRs in all U.S. physicians' offices and hospitals? A whopping $150 billion spread over the next eight years, according to one health economics professor. The professor, Robert Miller, of the University of California, San Francisco, actually considers the sum to be "manageable," given that it accounts for less than 1 percent increase per year in total U.S. healthcare spending.

Miller, who made his remarks at an Institute of Medicine workshop on the subject held last week, projects that hospitals are likely to spend $35 billion to buy and expand EMR systems, plus $55 billion on operating costs. In his view, large hospitals with the most beds are likely to be able to afford EMRs, but public and smaller hospitals--as well as troubled for-profits--may fall behind in the EMR arms race.

Meanwhile, the 96-odd percent of medical practices without EMRs would need to lay out about $15 billion in capital to acquire them, plus $24 billion to operate them over the next eight years, Miller says. Then there's $20 billion that should be spent for EMRs in nursing homes and other medical professional settings, Miller suggests.

To learn more about Miller's conclusions:
- read this Government Health IT piece

Related Articles:
CBO says EMRs won't save as much as hoped
California MDs lead in EMR adoption
CMS to offer EMR adoption incentives
The hidden side of EMR adoption

Comments

I believe $150B is understated.

Why? Anyone who's seen what actually goes on in clinical IT in hospitals knows that costs are amplified by the b.s. that goes on between greedy vendors, underqualified IT personnel, busy clinicians, incompetent or corrupt executives, highly expensive consultants, and other parasitic creatures.

A model of efficiency and cost effectiveness? I'm afraid not.

I would tend to agree with the above entry, and common sense would dictate that in projects such as these the actual would be double as would overhead. As far as vendors go, the office emr market is in a frenzy trying to sell medical office management systems with a lame add on for medical notes as emr's. My hope and my expectation is that well designed systems , not yet implemented may actually save money by preventing mistakes and allowing MD's to make more timely accurate decisions. It's a lot to ask for but all it takes is one company that does it correctly to bring competitors scrambling to compete. There are several hospital emr's that seem to be doing very well with what has previously unimaginable. SUN is doing work on regional centers in Canada.

There are alternatives that could lower the cost. The answer is software as service option.

Capzule starts at $150 a month per physician.

capzule.com

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