How electronic medical records reduce costs and improve patient outcomes

A centerpiece in the national health care reform agenda is the adoption of the electronic medical record (EMR) that promises to lower cost and improve quality. This revolution is bringing an end to millions of manila folders holding countless pieces of patient information and scribbled notes. In their place are EMRs that can transport patient information in real time with the click of a button.

Smart Business turned to Diana Hendel, the CEO of Long Beach Memorial Medical Center and Miller Children’s Hospital Long Beach, to learn more.

What is an electronic medical record?

Electronic medical records contain a patient’s full medical history in a digital format, allowing clinicians immediate access to secure patient data. With EMRs, patients’ health and medication history, laboratory results and more are easily accessible by physicians and health care providers.

EMRs minimize waste and inefficiency of manual and paper-based processes, maximizing clinical quality at points of decision-making and eliminating most paper used in patient documentation. Additionally, electronic medical records help prevent unnecessary orders and diagnostic tests, reduce medical errors and improve patient care.

How is it impacting MemorialCare?

All major MemorialCare hospitals have comprehensive EMRs, which translates into improvements in safety, clinical outcomes, quality and satisfaction for patients; a more efficient, accurate and productive staff; and greater satisfaction for physicians who can more easily retrieve complete patient information. At our hospitals, less than 4 percent of physician orders are written, thus eliminating almost all transcription errors. Turnaround time for initial physician orders of ‘stat’ medications has been slashed from 41 to 6 minutes. Fewer phone calls to clarify physician orders and increased efficiency means more time for clinicians at the patient’s bedside. And a million fewer sheets of paper copied each month makes us a greener health system.

The reduced costs that are associated with the electronic medical records have the potential to save the health delivery system millions of dollars.

Is there similar progress nationally?

While research shows hospitals that adopt electronic medical records have better patient outcomes, less than 10 percent of U.S. hospitals even have full EMR systems. One reason for this is the extraordinary costs associated with purchasing, implementing and maintaining an EMR system. In addition, reductions in reimbursement as well as an increase in labor, facilities, supplies and life-saving equipment costs are further hindering the adoption of EMRs. However, the ability to improve patient safety and quality makes the investment worth every penny. EMRs not only make health information more accessible to providers of health care, they also make health information more accessible to patients, offering individuals a more organized history of their health, much as Quicken has done for their personal finances.