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Whilst this level of cost saving is available theoretically, it is unlikely that<br />
these savings are achievable, given the high failure rate of hospital IT<br />
projects and the industry-wide cooperation that is required for full<br />
achievement. However the PECC project does report at least one 500 bed<br />
hospital which has achieved savings of this magnitude.<br />
Efficiencies resulting from clinical quality/safety improvements<br />
There are significant gains in health outcomes and decreases in ‘episode<br />
of care’ and whole-of-life costs arising from utilisation of e-commerce<br />
tools in clinical care.<br />
Box 6.2<br />
Avoiding adverse reactions<br />
The president of the Australian National Patient Safety Foundation, Professor Bill<br />
Runciman, is reported as estimating the national cost of admitting patients to public<br />
hospitals due to adverse reactions to medicines at about $500 million per year.<br />
‘It’s huge. It’s over ten per cent of the annual pharmaceutical budget, which is<br />
$4 billion,’ Professor Runciman is reported as saying.<br />
Professor Runciman, the head of anaesthetics and intensive care at Adelaide<br />
university is reported as saying that the main drugs involved in adverse events in<br />
Australia are anti-coagulants, anti-inflammatories used in arthritis treatment and<br />
drugs used for heart failure and blood pressure.<br />
An associate professor of medicine at Harvard Medical School, Dr David Bates, was<br />
reported as saying ‘US studies show that up to 80 per cent of adverse drug events<br />
could be prevented by computerised drug ordering.’<br />
Source: Sydney Morning Herald, 14 March 1998.<br />
Preventable adverse events resulting from failures of information flow<br />
among health providers account for eight per cent of hospital activity<br />
measured in bed-days. The cost of inappropriate use of pharmaceuticals is<br />
estimated at $500 million per annum. Australian research shows that<br />
general practitioners are unaware of 26 per cent of the medications being<br />
taken by their older patients, and amongst this age group adverse<br />
reactions to medication is estimated to cause one third of emergency<br />
hospital admissions.<br />
On the positive side, there are significant health benefits which are<br />
achievable if doctors prescribe more knowledgeably or consumers comply<br />
with prescribed treatment (or even to have the prescri<strong>pt</strong>ion filled) have<br />
been well documented. The estimated benefits from this improvement is<br />
also estimated to be of the order of $500 million, extrapolating from<br />
US studies.<br />
The rise of evidence-based medicine has seen the proliferation of clinical<br />
guidelines by various authoritative sources. Medical practitioners can now<br />
have access to professional information services which can form the basis<br />
of ‘expert systems’ whereby information from a variety of sources can be<br />
brought to bear on a particular patient episode and the prescri<strong>pt</strong>ion of<br />
therapies by the medical practitioner.<br />
An early example of this is the Clinical Information Access Project which<br />
the New South Wales Health Department has made available to health<br />
professionals in the public health system.<br />
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