Congress should pass a law requiring hospitals to move towards electronic medical billing, appeals and records, and a smart card in an effort to decrease administrative costs. A study from the New England Journal of Medicine showed that the administrative costs in the U.S. and Canada vary significantly. The study, which was conducted in 2003 and analyzed data from 1999, showed that administrative costs totaled $1059 per capita in the U.S. compared to $307 per capita in Canada. The results of this study emphasize the need for lower administrative costs.
An article in the New York Times shows the benefits that an electronic medical record system would provide. This article shows that costs would be lowered, which would result in greater access and patients would also receive a better quality of care due to better accuracy. It's mentioned that an electronic medical system would result in less duplicate tests, reduced medical errors, and safer surgery among other benefits. A system that requires electronic medical records would allow patients to release their medical records to multiple providers with less hassle. This would allow providers to have all the information they need at their fingertips to provide the best quality of care.
Electronic medical billing provides many of the same advantages that electronic medical records provide. According to 2K Medical, a company that provides electronic billing, the advantages to electronic billing include reducing costs, increasing productivity, quicker payment, streamlined processes, and confirmation when submitting claims. The main cost saving advantage for electronic claim submission is the money that is saved on postage and paper which translates to better access. Electronic billing would not necessarily have a direct connection to improved quality because claim submission is on the provider side of health care, but there would be an indirect relationship to quality because more time and energy can be spent caring for the patients when administrative costs are lowered.
According to a publication from the Smart Card Alliance, smart cards can provide a variety of benefits for patients, providers, payors, and employers. Smart cards decrease administrative costs because medical records are electronic, there are less denied insurance claims due to the electronic medical records, duplicate records and duplicate procedures are eliminated, and administrative processes are streamlined. Cost saving is always a major issue for hospitals and a system that lowers the administrative costs benefits both the provider and the patient in the long run. Lower administrative costs translate to lower health care costs, which allows more people to access health care, especially when inpatient care is already quite expensive. Additionally, the implementation of a smart card would result in a better quality of health care. Providers would be able to easily access a patient's medical history which would result in fewer unnecessary tests and more accurate care. A smart card would speed up processes such as registration and would also incorporate better security measures within our health care system.
The health care industry is quite complex and it's difficult to cut costs. Many people have proposed cost-cutting ideas and they have failed. This idea of lowering administrative costs by moving to an electronic system is not only feasible, but it will work in terms of saving money. Each of the components of the proposal have been shown to work and lower costs separately. Incorporating all of these tactics into one plan will allow for greater efficiency and even greater cost savings.
With every proposal there are concerns and this proposal is no different. While technology is becoming necessary, people are still skeptical to trust today's technology. Electronic billing and medical records are no different. People are often concerned about viruses, hackers, power outages, etc. While these things are always possible, one must note the amount of security provided regarding patient information. Hospitals have IT departments working to ensure that all information is secure. Patient information is backed up regularly and stored on multiple servers. Additionally, hospitals are equipped with power supplies in the event of a power outage. Additionally, there have been arguments that the required software and training when going paperless is expensive and will increase administrative costs. An article in USA Today cites that the Obama administration says that there could be a total cost saving of $12 billion over the next ten years if the nation were to go paperless in terms of medical records. While technology may result in concerns due to reliability and cost, over the long run, it makes more sense to convert to an electronic system.
Sources:
Electronic claim benefits. (2008). Retrieved from http://www.2kmedicalbilling.net/eclaims/lytec_benefits.html
A Healthcare ceo's guide to smart card technology and applications. (2009). Smart Card Alliance, Retrieved from http://www.smartcardalliance.org/resources/lib/Healthcare_CFO_Guide_to_Smart_Cards_FINAL_012809.pdf
Brody, J. (2010, February 22). Medical paper trail takes electronic turn. New York Times, Retrieved from http://www.nytimes.com/2010/02/23/health/23brod.html
Hall, M. (2009, April 6). Push for digital health records sparks debate. USA Today, Retrieved from http://www.usatoday.com/tech/news/techpolicy/2009-04-06-health-records_N.htm
Woolhandler, S, Campbell, T, & Himmelstein, D. (2003). Costs of health care administration in the united states and canada. The New England Journal of Medicine, Retrieved from http://content.nejm.org/cgi/reprint/349/8/768.pdf
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Very interesting proposal! It seems like you really concentrated on administrative costs at the hospital level. I am curious how much could be saved if we didn't have so many insurance companies!! Undoubtedly marketing alone by these companies is a multi-billion dollar entity!
ReplyDelete-Brad Burmeister (I don't know why my name is UWLaxHealthcareReform...)
I definatley like the idea of smart cards being used. As we saw in "Sick Around the World" smart cards can be very beneficial. I like the idea of them being so easily accessible for other health care providers. I think smart cards along with other electronical advancements should be implemented by health professionals and facilities.
ReplyDeleteI agree that we should implement an electronic medical records system in the health care. My primary care physician's office has an electronic medical records system and I'm able to compare this system to the traditional medical records system at my specialty orthopedic doctor. Electronic medical records have resulted in a lot less waste at my doctors office and I think this translates into lower costs for procedures that are performed by the doctors. Additionally, when my primary care physician has used eletronic records, I've noticed that my doctor has more time to spend with me because he doesn't need to take notes. All he has to do is confirm that things have or haven't changed in terms of my records. Overall, I think electronic medical records would greatly transform the health care system and be a major way to cut costs.
ReplyDeleteI agree that this would be a great way to lower costs. You did a nice job incorporating research-based studies and information.
ReplyDeleteAre you suggesting this to be required in all hospitals? Would that be realistic? What about the possibility of implementing this technology in clinics? Would there be training provided to educate staff on proper use of the technology?