Tuesday, September 20, 2011

Can Healthcare IT Save Babies?

The US has a higher infant mortality rate than most other developed nations. Electronic medical records (EMR) and other healthcare information technology (IT) improvements could reduce that rate, by standardizing treatment options and improving monitoring. We empirically quantify how healthcare IT improves neonatal outcomes. We identify this effect through variations in state medical privacy laws that distort the usefulness of healthcare IT. We find that adoption of healthcare IT by one additional hospital in a county reduces infant mortality in that county by 13 deaths per 100,000 live births. Rough cost-effectiveness calculations suggest that healthcare IT is associated with a cost of $450,140 per infant saved.

Source: MIT Sloan School of Management Working Paper;4686-08

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