A National Health Information Infrastructure Will Cost Billions, USA

Main Category: IT / Internet / E-mail
Article Date: 02 Aug 2005 - 17:00 PDT

email to a friend   printer friendly   opinions  

Researchers estimate that achieving a workable national health information infrastructure within the next five years would cost at least $156 billion in capital investment and $48 billion in annual operating costs (Article, p. 165).

At current rates of spending, U.S. hospitals, physician practices and nursing homes will invest only $24 billion in capital costs and $7 million in annual operating costs in functionalities alone.

The interoperability system by which various providers enter data into a record and "talk" to each other would require an additional $53 billion in capital investment and $21 billion in ongoing annual operating costs.

The bulk of this money will be needed by physician office practices. Researchers say that information technology is "an important tool to improve the safety and efficiency of U.S. health care, but its adoption remains limited largely because of a lack of aligned financial incentives and national standards."

Annals of Internal Medicine, tip sheet, August 2, 2005
Annals of Internal Medicine is published by the American College of Physicians. These highlights are not intended to substitute for articles as sources of information. For an embargoed copy of an article, call 1-800-523-1546, ext. 2656, or 215-351-2656. Leave fax or e-mail and article topics.

Penny Fuller
pfuller@acponline.org
215-351-2656
American College of Physicians
http://www.acponline.org

• Additional
• References
• Citations