In an analysis just released it is revealed that with an effective health IT system in place Australia would save up to 5,000 deaths and prevent two million GP and outpatient visits and 310,000 hospital admissions. This can also save up to $7.6bn in health costs annually. The savings would include $2.6 bn each year in medication errors, $2.3bn from improved care and prevention. There will be a reduction in unnecessary lab tests by more than 7.3 million, X rays by over 3 million.
Every year millions of medication errors arise out of misreading prescriptions, wrong doses, wrong dose regimen, overlooked drug interactions etc. This report was prepared by the management consultants Booz and Company. The report also says that installation of this computerized system will cost between $4bn and $8.5bn. The rollout would give governments a 68 per cent ($5.2bn) share of the estimated savings.
Critics have said the federal government's health reform proposals should have considered the funds for such a system and many of the reforms may suffer as a result. This report suggests that e-health is “the crucial missing piece of the health reform jigsaw”. Sydney-based Booz principal Klaus Boehncke said, “We estimate an investment in information networking of $3000 per annum per GP clinic could deliver up to $668,000 in annual savings per clinic, mainly through prevention and avoidable hospitalisation.”
The federal government is planning a mid-year introduction of the first stage of its e-health plans. However there are legal and technical problems to be addressed before that. Meanwhile more funds for e-health are expected in the budget on Tuesday.
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