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The savings of HRB Oregon One of Governor Ted Kulongoski’s priorities is more affordable health care. Electronic health records, like those HRB Oregon will identify for Oregon’s medical assistance clients and providers, are part of the Governor’s long-term goal to move toward more affordable health care by improving the quality of health care and making delivery more efficient.
As reported by the Oregon Health Policy Commission in its Report to the 73rd Legislative Assembly, a shared electronic health record bank like HRB Oregon would provide cost savings for Oregon’s medical assistance system in the following ways:
“A patient with an illness where there is known treatment, such as life-saving medications after heart attack, only receives appropriate care 54.9 percent of the time. Medical errors occur in at least 7 percent of hospital admissions, and lead to serious injury in about 3.7 percent of total hospitalizations.
“These quality and safety problems result in about 57,000 deaths, 41 million sick days, and $11 billion in lost productivity annually. . . .Oregonians spend approximately $17 billion [in health-related spending]."
HRB Oregon would remove one of the significant factors in these quality and safety problems -- inadequate access to patient information. In addition, “Connections to pharmacies could help generate better medication lists, reduce adverse effects from drug interactions, and speed prescription filling. Referral processes could be improved, communication between providers would be more robust, and transitions of care (such as between clinic and hospital) would be safer for patients, saving up to $31.2 billion.”
Reduced duplicate testing
“The electronic health record can reduce redundant, unnecessary medical tests as much as 15-20 percent within a hospital or outpatient setting. In all, electronic health records with the necessary functionality are estimated to save up to $44 billion for the United States as a whole.”
“Another benefit is the reduction of redundant laboratory tests for patients who seek care in different settings; between 8.6 and 20 percent of tests could be avoided if the information were available, saving up to $31.8 billion per year in medical costs nationally.”
The cost of diagnostic services accounts for approximately one-third of the capitation rate paid to Medicaid managed care plans in Oregon. HRB Oregon provides an opportunity to reduce redundant or unnecessary diagnostic testing and reduce the cost of providing services to OHP clients.
“Reduction in redundant radiology studies through digital transmission of reports and, eventually, the films themselves may save up to $3.2 billion per year.”
An electronic health records system, like HRB Oregon, would provide decision support tools such as “alerts about patient allergies and drug interactions [that have] been shown to reduce adverse events, or preventable injuries to patients. Reminders about best practice, such as electronic guidelines or protocols, can help improve the delivery of appropriate care and reduce inappropriate care.”
For more information on the system-wide benefits of electronic health records and advanced health information technology, read Potential Impact of Widespread Adoption of Advanced Health Information Technologies on Oregon Health Expenditures, a report prepared for the Oregon Health Care Quality Corporation and Office for Oregon Health Policy and Research in September 2007.
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