The Costs and Benefits of Health Information Technology: Computerized Physician Order Entry

The researchers measured the quality and cost effects of clinical information technology (IT), specifically computerized physician order entry (CPOE) systems. They used data from 1997 to 2006 to measure the direct value of CPOE, as well as the value it creates in conjunction with complementary technological and organizational investments. The value of CPOE will be based on its causal effect on medical errors, financial costs of medical errors, financial value of CPOE-driven error reductions, and “charge capture,” which the researchers describe as more effective billing and the ability to extract higher payments from Medicare and other payers. The objective of this study was to provide new insight into how clinical IT creates both financial and clinical value, while enhancing the empirical rigor with which that value is measured.