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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 />

127

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