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Related Experiment Videos

Return on investment for a computerized physician order entry system.

Rainu Kaushal1, Ashish K Jha, Calvin Franz

  • 1Division of General Medicine and Primary Care, Department of Medicine, Brigham and Women's Hospital and Harvard Medical School, 1620 Tremont Street, Boston, MA 02120-1613, USA. rkaushal@partners.org

Journal of the American Medical Informatics Association : JAMIA
|February 28, 2006
PubMed
Summary
This summary is machine-generated.

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Computerized physician order entry (CPOE) systems offer significant financial benefits, saving hospitals millions. Investing in CPOE can improve patient safety and reduce costs.

Area of Science:

  • Health Informatics
  • Healthcare Management
  • Clinical Systems

Background:

  • Hospital adoption of Computerized Physician Order Entry (CPOE) systems has been slow due to high costs and uncertainty about financial returns.
  • Limited data exists on the long-term financial impact of CPOE implementation in academic medical centers.

Purpose of the Study:

  • To assess the ten-year costs and financial benefits of a CPOE system at Brigham and Women's Hospital (BWH).
  • To determine the net savings and operating budget impact of CPOE implementation.

Main Methods:

  • A ten-year cost-benefit analysis of the CPOE system at BWH, a 720-bed academic hospital.
  • Data collection involved institutional experts, published studies, interviews, and internal documents.
  • Financial figures were presented in 2002 dollars, accounting for an 80% prospective reimbursement rate.

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Main Results:

  • BWH spent $11.8 million on CPOE development, implementation, and operation between 1993 and 2002.
  • The system generated $28.5 million in savings over ten years, resulting in cumulative net savings of $16.7 million.
  • Key savings drivers included renal dosing guidance, nursing time optimization, drug guidance, and adverse drug event prevention.

Conclusions:

  • The BWH CPOE system demonstrated substantial cost savings and operating budget improvements over a decade.
  • Hospitals can achieve financial benefits and enhance patient safety by investing in CPOE systems.