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Article: Economic perspectives on health information technology: aggressive adoption will reduce costs and improve quality in health care.
- Article from:
- Business Economics
- Article date:
- July 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 The National Association for Business Economists. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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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 ...
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