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Related Experiment Videos

Cost of an informatics-based diabetes management program.

Bonnie B Blanchfield1, Richard W Grant, Greg A Estey

  • 1Institute of Technology Assessment, Massachusetts General Hospital, Boston, MA 02124, USA. bblanchfield@partners.org

International Journal of Technology Assessment in Health Care
|March 31, 2006
PubMed
Summary

The POPMAN system for diabetes management cost $450,000 over 3.5 years. Its cost is comparable to other quality improvements, potentially offering net savings through performance incentives.

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Area of Science:

  • Health Informatics
  • Diabetes Management
  • Health Economics

Background:

  • High costs of information technology systems can deter hospital adoption.
  • Early adopter experiences can guide resource-limited hospitals.
  • This study focuses on the cost-effectiveness of an informatics system for type 2 diabetes management.

Purpose of the Study:

  • To identify and quantify the costs associated with designing, developing, implementing, and operating the POPMAN system.
  • To assess the financial feasibility of adopting such a system in primary care settings.
  • To provide data for hospitals considering similar technology investments.

Main Methods:

  • Systematic identification and collection of all cost components for the POPMAN system.
  • Analysis of one-time expenditures (sunk costs) and ongoing annual operating costs.

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  • Calculation of per-patient costs based on registry size.

    • Main Results:

    • Total development and 3.5-year operating cost for POPMAN was $450,000.
    • One-time expenditures accounted for approximately $250,000.
    • Annual operating costs are estimated between $90,000-$110,000, or ~$90 per patient for a 1,200-patient registry.

    Conclusions:

    • POPMAN's cost is comparable to other diabetes quality improvement interventions.
    • Adaptations for other diseases or EHR integration will incur costs lower than initial development.
    • The system enables pay-for-performance negotiations, potentially offsetting costs and improving diabetes care quality.