Health-Care Executives Recognize The Value Of E-Health RecordsHealth-Care Executives Recognize The Value Of E-Health Records

A majority of health-care executives believe electronic health-records systems will have a long-term positive financial impact on their organizations despite costs and other barriers to adoption, according to a new report by Capgemini.

The survey of 84 executives from hospitals, health insurers, physician groups, and health-care IT vendors conducted earlier this month by Capgemini and released Wednesday shows that 70% believe that E-health records will provide financial and clinical value to their organizations.

"Health care is a financially strapped industry. Organizations are looking for new ways to streamline their operations," says Lewis Redd, national leader of Capgemini's health practice. "Lots of things have been tried. Now technology is front and center in the health-care arena to bring about change."

Deployment of electronic health-records systems and other health-care information technology can reduce costs, including those related to medical mistakes that occur when doctors and clinicians don't have comprehensive and timely access to patient information such as drug allergies and medical history.

However, the adoption of these technologies presents clear challenges, with capital costs being the biggest obstacle cited by survey respondents. For example, the capital investment required for clinical systems, including electronic health records, could cost between $50 million and $100 million for a health-care operation with two or three hospitals, and could take an average of two years to deploy, Redd says.

However, once the systems have been installed and are up and running for about five years, an organization could save $15 million per year by eliminating unnecessary or redundant tests on patients, reducing medical errors, and simplifying processes that require manual paperwork by clinicians and other health-care workers, he says.

Still, electronic health systems face hurdles beyond cost outlays. Among the other obstacles cited by the surveyed executives were physician resistance and the lack of technology infrastructure in doctors' offices.

Among factors executives cite for slowing the adoption of E-health records are the need for clear technology standards, increased workloads for already-stressed IT staffs, concern that E-health-record systems require additional time and attention from nursing staff, and the need for greater collaboration between various health-care players such as insurance payers and health plans in order to get the full benefit of sharing electronic health information.

Despite the challenges, 88% of the executives say their organizations have either already begun addressing the adoption of digital health records or expect to do so within six months.