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Study of the Cost-Benefit Analysis of Electronic Medical Record Systems in General Hospital in China

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Abstract

Electronic medical record (EMR) systems have been proposed as technology to improve the quality of patient care, decrease medical errors, control and reduce medical expenditure, however the financial effects have not yet been as well documented in China. We presented a net financial cost-benefit analysis of implementing electronic medical record systems in general hospital in China. The data, which were obtained from studies of the general hospital and the published literature, collected from 15 consecutive fiscal months from May 1, 2009 to August 30, 2010. We performed a perspective cost-benefit study to analyze the financial effects of EMR system implementing. The reference strategy for comparisons was the traditional paper-based medical record. The net financial benefits or costs for a 6-year period were calculated. All data were adjusted for inflation. The totally assessed net benefit from implementing an EMR system for a 6-year period was $559,025 in the general hospital. Benefits accrue primarily from savings in new medical record creation, decreased full-time-equivalent (FTE) employees, saving of adverse drug events (ADEs) and dose errors, improved charge capture and decreased billing errors. In this model, the time of return on investment is 3.00 years. In one-way sensitivity analysis, the model was most sensitive in new medical record creation; the net benefit varied from $398,057 to $719,992. The five-way sensitivity analysis with the most pessimistic and optimistic assumptions showed results ranging from a $76,970 net cost to a $1,062,122 net benefit; the pessimistic time of return on investment is 5.38 years. An EMR system cost-benefit analysis can rapidly demonstrate a positive return on investment when implemented in hospitals. The magnitude of the return is sensitive to several key factors.

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Authors and Affiliations

  1. Department of Medical Information and Management Science, Graduate School of Medicine, Nagoya University, 65 Tsurumai-cho, Shouwa-ku, Nagoya, 466-8550, Japan

    Kai Li

  2. Department of Radiology, Graduate School of Medicine, Nagoya University, 65 Tsurumai-cho, Shouwa-ku, Nagoya, 466-8550, Japan

    Shinji Naganawa

  3. Key Project Office of HHRDC, Ministry of Health of The People’s Republic Of China, 14 Houhaibeiyan, Xicheng District, Beijing, 100009, China

    Kai Wang

  4. Cardiovascular Institute & Fuwai Hospital Peking Uion Medical College & Chinese Academy of Medical Sciences, 167 Beilishi Road, Xicheng District, Beijing, 100037, China

    Ping Li

  5. Aichi Medical Association Research Institute, 4-14-28 Sakae, Naka-ku, Nagoya, Aichi-ken, 460-0008, Japan

    Ken Kato

  6. Fundamental Nursing of Synthetic Nursing, Graduate School of Nursing & Health, Aichi Prefectural University, Tohgoku, Kamishidami, Moriyama-ku, Nagoya-shi, Aichi, 463-8502, Japan

    Xiu Li

  7. Yunnan Province Medical Information Research Institute, 205 People West Road, Kunming, Yunnan, 650118, China

    Jie Zhang

  8. Faculty of Medical Information & Management Science, School of Health Sciences Fujita Health University, 1-98 Kutsukake-cho, Toyoake, Aichi-ken, 470-1192, Japan

    Kazunobu Yamauchi

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  1. Kai Li
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  8. Kazunobu Yamauchi
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Correspondence to Kai Li.

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Li, K., Naganawa, S., Wang, K. et al. Study of the Cost-Benefit Analysis of Electronic Medical Record Systems in General Hospital in China. J Med Syst 36, 3283–3291 (2012). https://doi.org/10.1007/s10916-011-9819-6

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  • DOI: https://doi.org/10.1007/s10916-011-9819-6

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