No hospital savings with electronic records: study

New electronic record systems installed in thousands of U.S. hospitals have done little to rein in skyrocketing healthcare costs, Harvard University researchers said in a study released on Friday.

A review of roughly 4,000 hospitals from 2003 to 2007 found that while many had moved away from the paper files that still dominate the U.S. healthcare system, administrative costs actually rose, even among the most high-tech institutions.

But lead author Dr. David Himmelstein, an associate professor at Harvard Medical School, and his team found so far the savings are not there.

"Our study finds that hospital computerization hasn't saved a dime, nor has it improved administrative efficiency," said Himmelstein, who oversees clinical computing at Cambridge Hospital in Massachusetts. "Claims that health IT will slash costs and help pay for the reforms being debated in Congress are wishful thinking."

The researchers found administrative costs increased slightly from 24.4 percent in 2003 to 24.9 percent in 2007, with facilities that computerized the most quickly seeing the largest jump. Hospitals with the highest costs tended to be smaller, for-profit, non-teaching ones in cities, they added.