Study Pegs Poor Communications Costs

HDM Breaking News, March 11, 2009

Poor communications in U.S. hospitals costs $12 billion annually, and use of information technologies could be a big part of the solution, according to a new study.

Unnecessarily long hospital stays, which drive up time and resources used as patients wait to be discharged, account for 54% of such losses, according to the study. "To put the $12 billion amount into perspective, the loss equals approximately two percent of hospital revenue nationwide, a figure that is more than half the average hospital margin of 3.6 percent."

Researchers at the independent Center for Health Information and Decision Systems at the University of Maryland's Robert H. Smith School of Business conducted the study. They found the solution to inefficiencies rests largely in I.T. investments to streamline communication among clinicians, staff and others. These investments could include location-based technology to identify caregivers' whereabouts, systems that enable nurses to quickly identify an attending physician and remote specialist consultations.

A typical 500-bed hospital that improves communication could save $4 million a year, researchers estimate. To access the full study, click here.

--Joseph Goedert

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