Health Information Technology: Costs and Benefits

Many people believe that health information technology (health IT) has the potential to transform the practice of health care by reducing costs and improving quality. The Government Budg just released a significant study, prepared at the request of the Chairman of the Senate Budget Committee, examining the evidence on the costs and benefits of health information technology.

“Health IT” generally refers to computer applications for the practice of medicine. (Those applications may include computerized entry systems for physicians’ orders for tests or medications, support systems for clinical decisionmaking, and electronic prescribing of medications.) Relatively few providers—as of 2006, about 12 percent of physicians and 11 percent of hospitals—have adopted health IT.

Source: Congressional Budget Office