Study: HIT adoption in the U.S. can save $332 BN in 10 years
According to a study by UnitedHealth Group, America's largest health insurer by market value, widespread adoption and use of HIT may save the healthcare industry and the U.S. government up to $332 billion over 10 years. According to Reuters, modernization of current practices is the report's main tool for achieving significant savings:
The report identifies ways that technology can be applied to save money by modernizing the administrative and transactional aspects of health care.
For example, use of automated cards swiped at the doctor's office or hospital to validate patient benefits could generate $18 billion in savings alone, according to the paper.
According to the Los Angeles Business Journal, the UnitedHealth report describes additional savings by eliminating paper records:
Much of the $332 billion in savings would come from getting rid of paper records of all types at providers. For example, UnitedHealth estimates more than $108 billion would be saved in printing, postage and administrative costs by shifting payments and remittances to an electronic format.
National information systems also could save money. UnitedHealth estimates more than $47 billion could be saved if their [sic] was a national system to monitor and flag questionable health claims.
The UnitedHealth report proposes twelve major changes to the current system, "including replacing "explanation of benefits" letters with monthly personalized health statements and creating a national clearinghouse to address payment errors and settle payment balances." Reuters (June 30, 2009). The UnitedHealth Group's press release states that the report's goals and savings may be achieved through:
- Tighter mandatory data and transaction standards;
- Elimination of antiquated manual processes, unnecessary paperwork, and redundant intermediaries;
- Automated payment accuracy processes across the health care system;
- A single credentialing and quality measurement process; and,
- A sophisticated and consistent regulatory regime.
"UnitedHealth sees $332 bln in U.S. health savings", Reuters (June 30, 2009).
"UnitedHealth: e-payments could save billions, help pay for health reform", Los Angeles Business Journal (June 30, 2009).
"UnitedHealth Group Report Shows How Technology Can Streamline Administrative Processes and Create Potential Health System Savings of $332 Billion Over Next Decade", UnitedHealth Group Press Release (June 30, 2009).
