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RAND: Health IT no bargain yet

InformationWeek, January 9, 2013
Health information technology won't create the kind of cost savings predicted in a 2005 RAND Corp. study until the technology is far more widespread and is used to its full potential, a pair of RAND researchers conclude in a new Health Affairs report. The earlier RAND report, authored by Richard Hillestad and his colleagues, predicted that the potential efficiency and safety improvements made possible by health IT could save the U.S. healthcare system $81 billion a year. Since 2005, annual health spending has soared from $2 billion to $2.8 trillion, yet quality and efficiency have improved only marginally, despite an increase in health IT adoption, note researchers Arthur L. Kellerman and Spencer S. Jones in the new paper.