This section discusses the topic “how can information technology help reduce healthcare costs”. Read on to learn more.
What is Information Technology?
Information technology (IT) is a broad term used to describe the sum of hardware, software, and networking solutions used to store, exchange, and process information. The information age ushered in by the advent of computer technology has made it possible to store and retrieve vast amounts of information at speeds previously unimaginable. It is also estimated that the amount of digital data in existence exceeds the contents of all the books ever written – now this is huge!
In recent years, healthcare has been the beneficiary of massive investment in IT infrastructure. The volume and complexity of medical information continue to grow at an alarming rate. People in all walks of life are now more likely to have internet access than a telephone line, at work or home. The healthcare sector is no exception. The volume of medical information is growing rapidly, with advances in technology making it accessible to more people than ever before.
Until very recently, healthcare providers had to rely on paper-based systems for data storage and retrieval. Now there is a growing trend toward fully electronic systems, known as clinical information systems (CIS), used to store and retrieve patient information. The proliferation of computers and the development of sophisticated software have led to the digitization of clinical records. Thus, allowing instant access to patient information.
How Can Information Technology Help Reduce Healthcare Costs?
Here are some of the benefits of Information Technology to help reduce healthcare costs:
1. Electronic Claims Processing
Claims processing is one of the areas where information technology has had the biggest impact. Claim processing also involves the submission of bills by healthcare providers to insurance companies and other payers. This includes government programs and HMOs. Information technology has reduced claims processing costs and improved efficiency and accuracy as a result of the use of electronic claims processing systems. In fact, in many instances, claims are processed automatically in just a few minutes or even seconds.
2. Electronic Medical Records
Electronic medical records (EMR) can provide a wealth of information to authorized users on patients’ medical histories and current medical conditions. This allows for more effective management of patient care by allowing doctors and nurses to more accurately diagnose and treat patients. EMR also has the potential to revolutionize chronic disease management.
3. Communication & Information Sharing
Information technology allows healthcare providers to communicate and share information in previously impossible ways. Electronic communication between physicians and nurses reduces the time required to obtain and record patient information. Also, has been shown to improve the accuracy of patient records. Physicians can access patient information from anywhere in the world via secure internet connections. Also, facilitating more efficient treatment and reducing the need for follow-up appointments.
4. Compliance with Standards & Regulations
Information technology allows healthcare providers to implement standardized processes that enhance efficiency, transparency, and control over administrative activities. This has major implications for compliance with standards and regulations, including HIPAA and JCAHO. Information technology also provides a means of monitoring data to ensure compliance with regulatory guidelines.
5. Improved Safety & Security
Information technology is an effective tool for helping healthcare providers manage their risks and maintain control over sensitive data by encrypting it or removing it from the network altogether when necessary. Security measures can then be put in place to prevent unauthorized access to this data, both within the organization itself as well as externally via internet access points or other external networks.
