Advantages & Disadvantages of Computerization in the Hospital

Information technology in a hospital augments the staff's ability to treat patients and perform administrative tasks, but costs and risks accompany these benefits. Gains in productivity and operations costs can easily be offset by inappropriate use of information technology or lax security in a networked computer system. By being aware of both the advantages and the drawbacks to information technology, hospital management can maximize benefits to patients and the institution, while minimizing the potential for the technology's misuse.

Adopting and Upgrading Systems

• While computer technology can save hospitals money and improve staff efficiency over the long run, hospital management still incurs substantial purchasing and training expenses when it adopts a new system. Standardized productivity packages from established vendors are relatively inexpensive, but may not have the flexibility to fully meet the hospital's needs. Hospital management may contract a developer to create custom applications to add this flexibility, but this option is more expensive than purchasing a pre-designed software package. As the institution's requirements for the system change over time, hospital management will periodically need to upgrade the system to meet its needs, incurring further costs in money and training time.

Electronic Records Management

• An electronic records database not only provides easy and efficient record storage and retrieval, it allows users to specify multiple record search criteria, making collating and analyzing data for reports much more efficient than searching through hard copies for the relevant information. Electronic records storage on networked computers introduces the risk of hackers unauthorized users bypassing network security and gaining access to sensitive patient and financial data. The Health Insurance Portability and Accountability Act of 1996 requires hospitals to protect confidential information through physically restricting access to sensitive data and implementing technological safeguards to protect data on the hospital's network. Failure to abide by HIPAA security regulations can result in stiff fines and other punitive measures.

Medical Coding

• Computer coding software can facilitate insurance claim processing by helping coders find the proper CPT and ICD codes for recording patient information. Coding software can search for specific text strings, recognize pertinent diagnosis and treatment information, then find the codes that are most applicable to the patient's case. While this software helps coders find applicable codes, these packages are not replacements for experienced coders. The software can't determine whether the documentation submitted to the coder is complete and accurate; experienced coders are still necessary to ensure that the codes the software returns are genuinely applicable to the insured patient.

Telemedicine

• Internet technology enables telemedicine, which allows consultation between patients, primary caregivers and specialists. Telemedicine offers significant reductions in cost and travel time for patients and providers who need the expertise of a specialist at a distant facility. While telemedicine can augment a physician's diagnosis capabilities, it's still not a substitute for an in-person examination, as it's limited by quality of any digital images exchanged and the communication skills of the parties participating in the consultation. What constitutes legally appropriate health concerns to address through telemedicine is still a grey area, and some providers are wary of being open to malpractice suits by dispensing medical advice on the basis of a video consultation.