VA Study Shows Health IT Lowers Costs - April 9, 2010
Orlando Florida -- More than 86% of the savings were due to eliminating duplicated tests and reducing medical errors.
The Department of Veterans Affairs has shown that health information technology provides improved quality of healthcare and substantial cost savings, according to a study in the public health journal Health Affairs. The use of technology lowered costs while producing improvements in quality, safety, and patient satisfaction.
“VA has seen its investment in health information technology pay off for Veterans and taxpayers for many years, and this study provides positive evidence for this correlation,” said Secretary of Veterans Affairs Eric K. Shinseki. “The benefits have exceeded costs, proving that the implementation of secure, efficient systems of electronic records is a good idea for all our citizens.”
The study, which covered a 10-year period between 1997 and 2007, found that VA’s health IT investment during the period was $4 billion, while savings were more than $7 billion. The authors noted that most of the savings are in areas that also improve quality, safety, and patient satisfaction.
More than 86% of the savings were due to eliminating duplicated tests and reducing medical errors. The rest of the savings came from lower operating expenses and reduced workload. The authors further noted that these were conservative estimates of net value, based on available literature and published studies.
VA has also begun piloting health record exchanges with the Department of Defense and private-sector providers. These programs are paving the way for the seamless, lifetime exchange of the healthcare records of Veterans, regardless of where they live.
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Sencilo HealthIT Solutions is a Florida-based integrator specializing in EHR Cost Cutting storage, security and managed services
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