Health information management (HIM) is a vital component of the healthcare system, and it plays a crucial role in managing electronic health records, patient information, and medical billing. HIM has a significant impact on healthcare costs, as it helps reduce waste, fraud, and unnecessary medical procedures. In this article, we will explore the impact of HIM on healthcare costs.
Health information management is the process of collecting, analyzing, and protecting patient health information. This includes implementing electronic health records (EHRs), which allow healthcare providers to access patient data instantly, streamlining the healthcare process, and improving patient outcomes. EHRs also reduce the number of medical errors, resulting in better care and lower healthcare costs.
According to a study published by JAMA Internal Medicine, healthcare facilities that have implemented EHRs showed significant reductions in healthcare costs. The study revealed that healthcare providers who used EHRs experienced a 3.5% lower mortality rate and 2.5% fewer patient readmissions. This resulted in a total cost savings of $1,365 per patient discharge.
HIM also helps reduce medical fraud and abuse. The fraudulent billing and medical procedures occur when patients are subjected to unnecessary medical treatments, resulting in high healthcare costs. HIM can identify these fraudulent activities by analyzing data patterns and enabling healthcare providers to locate false claims quickly. This results in cost savings for the healthcare industry and helps prevent fraud and abuse.
Medical coding and billing errors are another area where HIM impacts healthcare costs. Medical billing errors occur when healthcare providers submit incorrect coding or billing information, resulting in denied claims and a loss of revenue. HIM helps reduce these billing errors by ensuring accurate coding and billing information, leading to increased revenue and cost savings for healthcare providers.
The use of HIM can also reduce healthcare costs by increasing efficiency and productivity within the healthcare industry. For instance, HIM enables healthcare providers to access patients’ medical information easily and quickly, which reduces the amount of time spent tracking down information. Efficient data collection and management also lead to more accurate diagnoses, reducing the need for repetitive tests and procedures, ultimately saving time and money.
Lastly, HIM can help identify any wasteful spending within the healthcare industry. Using data analysis tools, healthcare providers can identify patterns of overutilization or unnecessary medical procedures. Identifying these wasteful areas can lead to reducing healthcare costs by eliminating unnecessary procedures, tests, and treatments.
In conclusion, HIM has a significant impact on healthcare costs, reducing medical errors, improving patient outcomes, preventing fraud and abuse, and increasing efficiency and productivity in the healthcare industry. It is vital to invest in HIM technology and processes to maximize the impact of HIM on healthcare costs. As the healthcare industry continues to face cost pressures, HIM will continue to play a crucial role in reducing healthcare costs and improving patient outcomes.