Abstract
We compare health information technology (IT) in the Department of Veterans Affairs (VA) to norms in the private sector, and we estimate the costs and benefits of selected VA health IT systems. The VA spent proportionately more on IT than the private health care sector spent, but it achieved higher levels of IT adoption and quality of care. The potential value of the VA’s health IT investments is estimated at $3.09 billion in cumulative benefits net of investment costs. This study serves as a framework to inform efforts to measure and calculate the benefits of federal health IT stimulus programs.
Byrne CM, Mercincavage LM, Pan EC, Vincent AG, Johnston DS, Middleton B. The Value From Investments In Health Information Technology At The U.S. Department Of Veterans Affairs. Health Affairs. 2010 Apr 1;29(4):629-638.
The study’s authors note that the VA has the advantage of a unique, integrated structure that is hard to match in the private sector. However, this assumption is no longer valid. Technology advances now enable the creation of “virtual care delivery networks” that allow non-affiliated hospitals, primary care physicians, specialists, insurance companies, labs, imaging centers and others to coordinate care in a manner similar to the VA.
At my company, Medicity, we’re creating similar technology. In fact a study we did validated the same type of cost savings seen by the VA. We found that physician practices and hospitals saved $1.2 million annually in a data exchange scenario between four hospitals and 11 clinics/practices.
Read the Medicity study in full at: http://infosite.medicity.com/Info/Whitepapers_and_Briefs.aspx