Cost of interconnecting health information exchanges to form a national network

Despite the demonstrated need for a national health information network (NHIN), there has been little progress in turning this need into reality beyond limited local demonstrations. One barrier is the lack of information evaluating the potential costs of connecting these local networks to form a national network. The Center for Information Technology Leadership (CITL), in conjunction with national experts, developed assumptions around the components needed to develop the NHIN. These assumptions were largely based on the architectural approach suggested by the Connecting for Health Common Framework for such a network. Using these assumptions, CITL collected cost data from three different markets engaging in healthcare information exchange (HIE). These costs were then extrapolated to the nation based on population density data from the U.S. Census Bureau. The CITL model projected an initial deployment cost of $97 million and an annual maintenance cost of $41 million for HIE across the NHIN.