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AIS's Health Business Daily
Featured Story March 19, 2008 Mass. Study Finds Computerized Physician Order Entry Can Yield a Significant Reduction in Dangerous Medical ErrorsReprinted from HEALTH PLAN WEEK, the industry's leading source of business, financial and regulatory news of health plans, PPOs and POS plans. By Chris Meehan, Editor, (cmeehan@aispub.com) Massachusetts-based health plans and the commonwealth's hospital association agree that the implementation of a computerized physician order entry (CPOE) system at hospitals will help improve the quality of care delivered. Blue Cross and Blue Shield of Massachusetts said that based on the results of a recent study performed by Massachusetts Technology Collaborative and The New England Health Care Institute, it will not allow hospitals that do not have CPOEs in place to participate in its hospital pay-for-performance (P4P) program starting in 2012. The study finds that Massachusetts hospitals could prevent 55,000 dangerous medication errors every year and save $170 million annually if all hospitals in the commonwealth use CPOE systems. According to the study, one out of 10 patients admitted to hospitals participating in the study suffers from a preventable medication injury such as a severe allergic reaction or dangerous interaction among medications. The study also found that CPOEs could cut the preventable error rate by 70%. "Many hospitals already implemented [CPOE systems] or are well along in that process," says Massachusetts Hospital Association spokesperson Rich Copp. "At [the study's] unveiling, it was applauded by providers, insurers, state business leaders alike," he adds. However, the study found that only 10 of 73 Massachusetts hospitals have fully implemented such tools. The initial outlay of $2.1 million for a CPOE system is still the biggest barrier to implementation, and annual maintenance costs for the system are roughly $435,000, according to the study. Despite the initial costs, the systems should pay for themselves in 26 months and "save each community hospital $2.7 million annually" in lowered error rates, shortened hospital stays, and reduced unnecessary drug tests and laboratory use, the study said. The question is, "Will the initial investment in CPOE be a hurdle for some hospitals?" Copp asks, noting that the systems might be more difficult for smaller hospitals to implement. Massachusetts Blues spokesperson Chris Murphy tells HPW that the company's decision to exclude hospitals without the tools is based in the plan's desire to help "increase the quality of the health care delivery system." He adds that the forthcoming P4P policy ties into the plan's recently announced global fee schedule and other efforts to really improve the quality of care delivered to plan members. The Massachusetts Association of Health Plans says it is not aware of any other health plans in the commonwealth that are taking the same step as the Massachusetts Blues plan, MAHP President Marylou Buyse, M.D. tells HPW. She says MAHP believes CPOEs can be beneficial, but "we don't think they're the panacea for rising health care costs." Rather, "We think its one of many things that needs to be done" to help control costs, she says. She explains that health care spending is higher in Massachusetts than in other states. Health care spending on a per member basis in Massachusetts was $9,662 in 2006, "a third more than the national average of $7,266 per member," according to Buyse.
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