Monday, September 17, 2012

Those Electronic Medical Records

...that will reduce health care costs?  Maybe not so much.
Many doctors and hospitals say that computerized medical records encourage the move to higher codes because the software makes it easier for providers to quickly create documentation for charges. One electronic medical records company predicts on its Web site that its product will result in an increase of one coding level for each patient visit, potentially adding $225,000 in new revenue in a year.
Which goes to show that entrepreneurs will always work the angles.  Still, much can be done.  Inefficiencies in the US healthcare system waste about $750 billion per year.  That's right--$750 BILLION.  The Institute of Medicine estimated losses due to unnecessary services ($210 billion annually); inefficient delivery of care ($130 billion); excess administrative costs ($190 billion); inflated prices ($105 billion); prevention failures ($55 billion), and fraud ($75 billion).  These are estimates but even allowing a margin of error they are large numbers.  Targets of opportunity for reform and effective management.



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3 Comments:

Blogger Mike Cornelia said...

EMR might be rasiing health care costs, but it makes the lives of doctor's and patients so much easier! I use a physical therapy billing software and it is so easy to get my payments in at the right time and keep track of my previous payments. As much as people want to complain about this troublesome cost-driving service it is actually very effective.

7:46 AM  
Blogger Rez Dog said...

EMR does have real potential to streamline medical administration and information sharing. I agree with Mike on that and have experienced the efficiency of VA medical records. I also know that entrepreneurs will work the angles; we will need to build accountability and oversight all reforms.

8:11 AM  
Blogger Brielle Franklin said...

I do agree, that even though electronic medical records may be raising health care costs, it does seem to make the doctor's lives easier. Also, with my experience with it, I like having access to my records, whenever I need them.

9:05 AM  

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