Fear of commitment: Weighing costs and benefits of information technology

Hospitals and physicians agree that computerization can be a practice boon, but both groups also fear the technology's potential to devour a lot of money.

By Katherine Vogt, AMNews staff. June 27, 2005.

Hospital leaders know that information technology promises a better life of improved quality of care and streamlined operating efficiencies. But as they get ready to bring these systems into their lives, many are getting cold feet.

They have deep concerns about whether they are choosing the right kind of technology, because a dearth of industry standards leaves them without guarantees that their systems will be compatible with others. And they also worry that they will be forced to bear the costs of such systems alone, adding to mounting financial pressures in the industry.

These jitters were much of the focus of the American Hospital Assn. annual meeting May 1-4, which brought together hospital leaders, industry observers and politicians. While much of the discussion sought to allay fears, a lack of certainty about the future underscored the conundrum many hospitals are facing.

"There really are no easy, one-size-fits-all answers," said Teri Fontenot, president and chief executive of Woman's Hospital in Baton Rouge, La., and an AHA board member. "It's time to move on through the five stages of grief and accept that IT is here. We might as well make the best of it."

Fontenot's hospital, which specializes in obstetrics and women's health, spends about $2.5 million per year on IT. That amounts to about half of its capital expenditures. The hospital also invests in a lot of clinical equipment related to information technology.

The investments have helped Woman's Hospital work on its strategic goals to improve the quality of care and operate more efficiently. Fontenot said the technology had become a "powerful" recruiting tool in luring and retaining physicians.