EHRs Do Not Pull Down Hospital Costs

These days, everyone is talking about the financialmagazine. "Hospitals on the 'Most Wired' list
benefits of electronic health records (EHR). CMS'sperformed no better than others on quality,
new proposed regs on ARRA incentive paymentscosts, or administrative costs," according to the
to hospitals and providers who adopt EHRstudy.
technology assume that quality of care and EHRsThe new study was lead by a team of
go together.researchers at the Harvard Medical School which
A new Harvard study exposes some myths.was led by Dr David Himmelstein, an associate
A study released in November last year showedprofessor at Harvard Medical School. The team
that EHR does not improve quality of care. But inanalyzed whether hospitals that were more
an article published in the January 2010 issue ofcomputerized had lower costs of care or
the American Journal of Medicine, another groupadministrative costs, so also whether they had
of researchers have reached the conclusion that itbetter quality of care.
does not save the money of hospitals either.The study found out that more computerized
While hospital computerization increased from thefacilities often had higher total costs. And the ones
year 2003 to 2007, hospitals' administrative coststhat increased their computerization the fastest
increased slightly but steadily, from 24.4% in 2003experienced more rapid administrative cost
to 24.9% in 2007, the study found. "As currentlyincreases.
implemented, hospital computing might modestlyAs per the study healthcare IT news, hospitals'
improve process measures of quality but doesadministrative costs increased slightly but steadily
not reduce administrative or overall costs," itfrom 24.4% in 2003 to 24.9% in 2007. The study
concluded.concluded that hospital computing might just
The study also compared costs and quality ofimprove process measures of quality, but does
hospitals on the "100 Most Wired List" that isnot bring down administrative or overall costs.
compiled by Hospital and Health Networks