Tag Archives: ROI

Does the proximity of IT firms influence the cost of EMR?

The National Bureau of Economic Research published a new paper (payment may be required) examining the “relationship between the adoption of electronic medical records (EMR) and hospital operating costs at thousands of US hospitals between 1996 and 2009.”

Here is an excerpt from the study’s abstract:

We find evidence consistent with this approach, namely, that: (1) EMR adoption is initially associated with a rise in costs; (2) EMR adoption at hospitals in favorable conditions – such as urban locations – leads to a decrease in costs after three years; and (3) Hospitals in unfavorable conditions experience a sharp increase in costs even after six years.

“Unfavorable conditions” include greater distance from information technology hubs, meaning that rural hospitals are less likely to see a short-term return on their EMR/EHR investment.

Today’s most competitive healthcare organizations are data-driven. Brian Studebaker and Roger Connolly provide perspective into innovative business intelligence (BI)—the process of turning data into actionable information… Read their paper on getting a return on investment out of business intelligence here.

Click on electronic health records for more insights.

Get better ROI from your business intelligence

Business intelligence (BI)—the process of turning data into actionable information—is a critical capability in the healthcare industry. Business intelligence enables healthcare entities to measure, analyze, and improve across multiple areas of organizational performance.

Most healthcare entities have a business intelligence strategy, but many struggle to get the greatest value from their clinical, operational, and financial data. They may have robust data and the tools for analytic enhancement, but without an interface that facilitates data sharing across departments and job roles and an enterprise-wide commitment to integrating data with business process, they are in effect leaving money on the table. Today’s most competitive healthcare organizations are data-driven.

This paper provides insight into innovative business intelligence in healthcare and steps that an organization can take to get a better return on investment (ROI) from its data.

What we know about wellness and cost savings

As we mentioned on Monday, the cost-savings potential of prevention and wellness is still uncertain. Milliman Principal Kate Fitch provides some perspective on this.

Wellness is often mentioned as a key component of healthcare reform yet the success of these programs is mixed.

We asked Kate Fitch for perspective based on lessons learned from the private sector.

Q: What wellness programs are most effective? Do some programs work better than others?

Kate Fitch: Program effectiveness goes beyond whether or not it “works.” Wellness programs should be evaluated in terms of both efficacy and value. Providing everyone with a personal trainer, personal nutritionist, and exercise equipment in the home might result in a few great outcomes. But if the cost becomes astronomical, or if the population affected by the program is insignificant, the value of the program comes into question.

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