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Letter| Volume 123, ISSUE 6, e11, June 2010

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Electronic Medical Records and Economics

      To the Editor:
      Himmelstein et al's article
      • Himmelstein D.U.
      • Wright A.
      • Woolhandler S.
      Hospital computing and the costs and quality of care: a national study.
      demonstrated that the increasing use of electronic medical records (EMRs) during a recent 4-year period did not reduce overall costs and had only marginal affects on quality. This is another useful antidote to the belief that EMRs are a panacea for health care cost and quality.
      This result is not surprising, given the universe in which it is considered: intra-institutional behavior. The proponents of EMRs point to different sets of reasons for their promised benefits: coordination of multiple provider care to eliminate redundant testing, and external pressures created by the publication of summary data from the EMRs. Neither was present in this study. Another major source of outside pressure is the creation of provider profiles
      • McLean T.R.
      • Burton L.
      • Haller C.C.
      • McLean P.B.
      Electronic medical record metadata: uses and liability.
      from EMRs and the use of these profiles to create reputational incentives to ration health care services.
      • McLean T.R.
      Reputational incentives—how improving transparency can drive hospital competition.
      At the 2010 Society of Thoracic Surgery meeting, we presented data demonstrating that states that use reputational incentives perform significantly fewer coronary artery bypass grafting procedures per capita than states that do not use reputational incentives.
      More generally, the increased transparency provided by the government's Hospital Compare and soon-to-be Physician Compare websites
      • McLean T.R.
      Big Brother and need for a performance measure integrity and fraud detection act.
      does more than increase patient information. It also makes providers think twice before offering to provide services to high-risk patients. No one wants to be last in their class. Accordingly, providers (who increasingly understand that they are under the microscope of public scrutiny) are seeking to avoid becoming a high-outlier on public report cards by shunning risky patients. But such a rationing scheme is precisely why some health care reformers advocated EMRs. The reformers know that many services, like coronary artery bypass grafting, are over-prescribed; they just cannot figure out which patients should not receive that service. On the other hand, reformers know that the reputational incentives created by the public dissemination of EMR-facilitated provider-specific profiles will motivate providers to prescribe fewer services to high-risk patients. Unfortunately, this will provide the unintended incentive for increasing unnecessary procedures done on healthy patients, which will ensure that the provider has a very low-risk profile.
      In short, if Himmelstein et al had included the impact of EMR-facilitated provider-specific reporting on costs in a hospital market rather than individual hospitals, they may have found a significant reduction in overall health care costs because fewer services were provided.

      References

        • Himmelstein D.U.
        • Wright A.
        • Woolhandler S.
        Hospital computing and the costs and quality of care: a national study.
        Am J Med. 2010; 123: 40-46
        • McLean T.R.
        • Burton L.
        • Haller C.C.
        • McLean P.B.
        Electronic medical record metadata: uses and liability.
        J Am Coll Surg. 2008; 206: 405-411
        • McLean T.R.
        Reputational incentives—how improving transparency can drive hospital competition.
        Am Heart Hosp J. 2009; 7: 27-32
        • McLean T.R.
        Big Brother and need for a performance measure integrity and fraud detection act.
        Law Technol J. 2009; 42

      Linked Article

      • Hospital Computing and the Costs and Quality of Care: A National Study
        The American Journal of MedicineVol. 123Issue 1
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          Many believe that computerization will improve health care quality, reduce costs, and increase administrative efficiency. However, no previous studies have examined computerization's cost and quality impacts at a diverse national sample of hospitals.
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      • The Reply
        The American Journal of MedicineVol. 123Issue 6
        • Preview
          We found no hint of savings from hospital computing. Moreover, the cost data we analyzed included follow-up costs of care, dashing McLean and Richards' hope that an analysis based on costs in a hospital market rather than an individual hospital would show savings.
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