More than a third of medical practices are electronically connected

Larger groups are more likely to spend money on technology.

By Tyler Chin, amednews staff. Jan. 14, 2002.

About 35% of physician practices are electronically connected to and exchanging information with hospitals, insurers and other trading partners, according to an AMA study.

Those practices are primarily exchanging patient demographic information, laboratory reports and health insurance claims with their trading partners, according to "Technology Usage in Physician Practice Management." The 115-page study marks the Association's first comprehensive examination of how practices are using different technologies in the office and with their trading partners for practice management functions.

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The AMA, which surveyed 981 practice administrators or managers at practices of one or two physicians, three to 10 physicians, and 11 or more physicians, found that nearly every office used computers. About 85% of the practices said their computers are networked, and more than one-third said their computers are linked to hospitals, billing services, insurance companies or laboratories.

The larger the practice, the more it planned to spend on hardware, software or network services, though the sums involved are relatively modest. For example, not a single group of one or two physicians reported plans to spend more than $10,000 in 2001, compared with 7% for groups of three to 10 physicians, and 38% for groups with 11 or more physicians.

In fact, most solo or two-doctor practices -- 76% -- said they planned to spend less than $500 on technology in 2001, the study said. At those practices, the primary person making the technology purchasing decision was evenly split between the practice administrator or the physician.

In larger settings, however, those decisions were made mostly by administrators/managers. That's probably because physicians at large groups may be involved with more day-to-day practice management and entrust administrators with the buying decisions, said Marsha Mildred, acquisitions editor, AMA Press.

Administrators of larger groups also are likely to be more knowledgeable about technology than counterparts in smaller groups, she said.

Cost, retraining and resistance to change were the most common reasons practices cited to explain obstacles to increasing the practices' use of technology, according to the study.

The study's findings suggest that technology companies should seek to include office staff in their efforts to educate physicians about the potential benefits of using electronic records to better manage or practice medicine. That's because 13% said electronic records would make it easier for their group to manage or practice medicine, but 48% said that they didn't know what technology could help them achieve that.

Approximately 23% of physician practices reported that someone in their office uses a handheld device. Most used the devices to keep a calendar and address and telephone list.

Few used the devices for practice management functions such as scheduling, billing and coding. "I was a little surprised about that," Mildred said. "I think we expected to hear that they had the PDR and that sort of thing on the handheld."

The study did not ask respondents if the person using the device was a physician, but that was probably the case because a doctor would be "more likely to use a handheld than an administrator" who has a desktop computer, Mildred said.

ADDITIONAL INFORMATION:

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Highlights of a recent AMA survey of physician offices' use of technology:

96% use computers.
85% network their computers.
75% have Internet access.
35% connect their computers to other institutions, including hospitals, billing services, insurers and laboratories.

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"Technology Usage in Physician Practice Management" is available for $2,800 from the AMA Press's Online Catalog (http://www.amapress.com/) or by calling (800) 621-8335.