Costs and Benefits of Health Information Technology

Evidence Report/Technology Assessment

Number 132

Costs and Benefits of Health Information Technology

Prepared for: Agency for Healthcare Research and Quality U.S. Department of Health and Human Services 540 Gaither Road Rockville, MD 20850

Contract No. 290-02-0003

Prepared by: Southern California Evidence-based Practice Center, Santa Monica, CA

Center Directors Paul Shekelle, M.D., Ph.D. Sally C. Morton, Ph.D. Mathematician Emmett B. Keeler, Ph.D. Content Experts Jerome K. Wang, M.D. Basit I. Chaudhry, M.D. Cost Effectiveness Analyst Shin-Yi Wu, Ph.D. Physician Reviewers Walter A. Mojica, M.D., M.P.H. Basit I. Chaudhry, M.D. Project Director Margaret Maglione, M.P.P. Programmer Elizabeth A. Roth, M.A. Staff Assistants Cony Rolon, B.A. Di Valentine, J.D. Librarian Roberta Shanman, M.L.S. Medical Editor Sydne J. Newberry, Ph.D.

AHRQ Publication No. 06-E006 April 2006

This report is based on research conducted by the Southern California Evidence-based Practice Center (EPC), under contract to the Agency for Healthcare Research and Quality (AHRQ), Rockville, MD (Contract No. 290-02-0003). The findings and conclusions in this document are those of the author(s), who are responsible for its content, and do not necessarily represent the views of AHRQ. No statement in this report should be construed as an official position of AHRQ or of the U.S. Department of Health and Human Services.

The information in this report is intended to help clinicians, employers, policymakers, and others make informed decisions about the provision of health care services. This report is intended as a reference and not as a substitute for clinical judgment.

This report may be used, in whole or in part, as the basis for the development of clinical practice guidelines and other quality enhancement tools, or as a basis for reimbursement and coverage policies. AHRQ or U.S. Department of Health and Human Services endorsement of such derivative products may not be stated or implied.

This document is in the public domain and may be used and reprinted without permission except those copyrighted materials noted for which further reproduction is prohibited without the specific permission of copyright holders. Suggested Citation: Shekelle PG, Morton SC, Keeler EB. Costs and Benefits of Health Information Technology. Evidence Report/Technology Assessment No. 132. (Prepared by the Southern California Evidence-based Practice Center under Contract No. 290-02-0003.) AHRQ Publication No. 06-E006. Rockville, MD: Agency for Healthcare Research and Quality. April 2006.

No investigators have any affiliations or financial involvement (e.g., employment, consultancies, honoraria, stock ownership or options, expert testimony, grants or patents received or pending, or royalties) that conflict with material presented in the report.

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Preface

The Agency for Healthcare Research and Quality (AHRQ), through its Evidence-Based Practice Centers (EPCs), sponsors the development of evidence reports and technology assessments to assist public- and private-sector organizations in their efforts to improve the quality of health care in the United States. This report was requested and funded by the Office of the Assistant Secretary for Planning and Evaluation (ASPE) with additional funding from the Office of Disease Prevention and Health Promotion (ODPHP), U.S. Department of Health and Human Services. In addition, the report was requested by the Leap Frog Group and the Centers for Medicare & Medicaid Services (CMS). The reports and assessments provide organizations with comprehensive, science-based information on common, costly medical conditions and new health care technologies. The EPCs systematically review the relevant scientific literature on topics assigned to them by AHRQ and conduct additional analyses when appropriate prior to developing their reports and assessments.

To bring the broadest range of experts into the development of evidence reports and health technology assessments, AHRQ encourages the EPCs to form partnerships and enter into collaborations with other medical and research organizations. The EPCs work with these partner organizations to ensure that the evidence reports and technology assessments they produce will become building blocks for health care quality improvement projects throughout the nation. The reports undergo peer review prior to their release.

AHRQ expects that the EPC evidence reports and technology assessments will inform individual health plans, providers, and purchasers, as well as the health care system as a whole, by providing important information to help improve health care quality.

We welcome written comments on this evidence report. They may be sent by mail to the Task Order Officer named below at: Agency for Healthcare Research and Quality, 540 Gaither Road, Rockville, MD 20850, or by e-mail to epc@.

Carolyn M. Clancy, M.D. Director Agency for Healthcare Research and Quality

Jean Slutsky, P.A., M.S.P.H. Director, Center for Outcomes and Evidence Agency for Healthcare Research and Quality

Michael J. O'Grady, Ph.D.

Beth A. Collins Sharp, R.N., Ph.D.

Assistant Secretary for Planning and Evaluation Acting Director, EPC Program

U.S. Department of Health and Human Services Agency for Healthcare Research and Quality

CAPT Penelope Royall, P.T., M.S.W. Director Office of Disease Prevention and

Health Promotion Office of Public Health and Science Office of the Secretary

Margaret Coopey, R.N., M.G.A., M.P.S. EPC Program Task Order Officer Agency for Healthcare Research and Quality

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