Economic Perspectives on Health Information Technology

Aggressive Adoption Will Reduce Costs And Improve Quality In Health Care.

David J. Brailer

David J. Brailer is the first National Health Information Technology Coordinator, U.S. Department of Health and Human Services. His duties as National Coordinator are to execute actions to foster widespread deployment of health information technology within ten years to help realize substantial improvements in safety and efficiency. Previously, he was at the Health Technology Center in San Francisco, CA, and Chairman and CEO of CareScience, Inc. He has doctoral degrees in both medicine (West Virginia University) and managerial economics (University of Pennsylvania). Until recently, he was active in patient care delivery with an emphasis on immune deficiency.

It seems paradoxical that health care spending and examples of inferior health care have been rising rapidly at the same time. An important factor is the slow pace at which the health care system has adopted information technology (IT). This paper discusses the dimensions of the problems that could be mitigated by effective use of IT in the health care system, their consequences, and their potential solutions. It also discusses the economic and institutional barriers to deploying IT and how the inherent economies of scale in IT are likely to lead to new problems of competition within the health care system. Inasmuch as this paper was based on an address followed by a question-and-answer period, it also includes an edited version of the recorded questions and answers.

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