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Congressional Budget Office questions projected EHR financial benefits

EHR Connection, June 16, 2008

The Congressional Budget Office (CBO) has discounted earlier projections of large cost savings attributable to the adoption of healthcare information technology such as EHRS, according to a May 22 article in The Wall Street Journal.

In particular, the CBO questioned a widely cited RAND Corp. analysis that estimated $77 billion in annual savings, according to the article. The Budget Office has an important voice in such matters because of its role in calculating the cost of legislation to the federal government.

The CBO has found potential for savings in certain circumstances, particularly when information technology is combined with broader reforms, but said that the technology alone was unlikely to yield sizable financial benefits, the newspaper reported. The finding challenges health information technology advocates who posit that improved patient safety and greater efficiency would reduce fast-growing healthcare expenses.

A RAND spokesperson disagreed with the Budget Office saying the company stands by its projections, according to the article.

Click here to read The Wall Street Journal article.

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