title: Health information technology and its effects on hospital costs, outcomes, and patient safety.
abstract: Underlying many reforms in the Patient Protection and Affordable Care Act (ACA) is the use of electronic medical records (EMRs) to help contain costs. We use MarketScan claims data and American Hospital Association information technology (IT) data to examine whether EMRs can contain costs in the ACA's reforms to reduce patient safety events. We find EMRs do not reduce the rate of patient safety events. However, once an event occurs, EMRs reduce death by 34%, readmissions by 39%, and spending by $4,850 (16%), a cost offset of $1.75 per $1 spent on IT capital. Thus, EMRs contain costs by better coordinating care to rescue patients from medical errors once they occur.
authors.affiliation: Center for Delivery, Organization and Markets, Agency for Healthcare Research and Quality, 540 Gaither Road, Rockville, MD 20850, USA. william.encinosa@ahrq.hhs.gov
authors.forename: William E
authors.initials: WE
authors.lastname: Encinosa
authors.forename: Jaeyong
authors.initials: J
authors.lastname: Bae
mesh_terms: D000328:Adult; D000367:Age Factors; D003363:Cost Control; D005260:Female; D017721:Hospital Costs / Q000706:statistics & numerical data*; D017052:Hospital Mortality; D006801:Humans; D007256:Information Systems / Q000458:organization & administration; D007345:Insurance Claim Review / Q000706:statistics & numerical data; D008297:Male; D016347:Medical Records Systems, Computerized / Q000191:economics* / Q000706:statistics & numerical data; D008875:Middle Aged; D017063:Outcome Assessment, Health Care / Q000706:statistics & numerical data*; D061214:Patient Safety / Q000191:economics* / Q000706:statistics & numerical data*; D019984:Quality Indicators, Health Care / Q000191:economics / Q000706:statistics & numerical data; D012737:Sex Factors