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December 12, 2005



>>It will absolutely not decrease costs. Only improved rationing of health care resources will do that.

I agree that it will not decrease the cost of the actual care - but the cost of the OVERHEAD - billing, claim processing, etc is HUGE. If ATM transactions cost 5 cents - there is NO reason a medical claim processing cannot fall to $1 or less. Having ONE format of everything will make a HUGE difference in costs.


you're totally right. It's the fat around delivering care that can be trimmed. But also having better disease management will prevent unnecessary complications, surgeries, etc.


I would argue that EMR/HIT would decrease total healthcare spending, to the extent that it would allow for the identification of redundant diagnostics and the like. However, this has a very unpleasant flip-side... even without considering the cost of capital charge for the EMR system, procdure costs will have to increase as a result of HIT in order to provide the same number of dollars to cross-subsidize services and provide uncompensated care.

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