VA Health Information Technology Improves Quality of Health Care While Reducing Costs

April 8, 2010 in VA by Editor

WASHINGTON – The Department of Veterans Affairs has shown that health information technology provides improved quality of health care and substantial cost savings, according to a study in the public health journal Health Affairs. The use of technology lowered costs while producing improvements in quality, safety and patient satisfaction.

“VA has seen its investment in health information technology pay off for Veterans and taxpayers for many years, and this study provides positive evidence for this correlation,” said Secretary of Veterans Affairs Eric K. Shinseki. “The benefits have exceeded costs, proving that the implementation of secure, efficient systems of electronic records is a good idea for all our citizens.”

The study, which covered a 10-year period between 1997 and 2007, found that VA’s health IT investment during the period was $4 billion, while savings were more than $7 billion. The authors noted that most of the savings are in areas that also improve quality, safety and patient satisfaction.

More than 86 percent of the savings were due to eliminating duplicated tests and reducing medical errors. The rest of the savings came from lower operating expenses and reduced workload. The authors further noted that these were conservative estimates of net value, based on available literature and published studies.

Read full press release

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