Many people attribute rising costs in any industry, and especially healthcare, to technology. But in reality, technology in healthcare seems to be driving healthcare costs UP. Is that really the case?
In nearly every sector of the economy, technology drives costs down – just as your digital camera gets cheaper and better every year, so technology drives down the cost of manufacturing, the cost of retailing, the cost of research. But for some reason, in healthcare, technology has the opposite effect; it doesn’t cut costs, it raises them. In fact, medical technologies – from CT scans to stents to biologics – are a significant factor in the 10% annual growth rate of healthcare spending, a rate that’s nearly triple the pace of inflation. (Overall, the US is now estimated to spend a stunning $2.7 trillion on healthcare in 2010.)
When you look closer however, some healthcare companies (including insurance companies) are using technology to improve care and service, while driving costs down.
In the world of insurance and care providers, some folks already understand this, and are way ahead of Washington policy makers in tapping cheap technologies to improve healthcare. In Hawaii, Kaiser Permanente has started a pilot project that churn through its database of patient data to predict which patients might need which tests – and then sends individuals email alerts suggesting they come in for a test or checkup. It’s the same sort of technology that Netflix uses to recommend movies. And the Cleveland Clinic has teamed up with Microsoft to bring self-monitoring tools to patients managing chronic diseases, successfully engaging them in better health behaviors without expensive visits to the hospital.
Axis Technical Group is working closely with its clients in the healthcare sectors designing, developing and implementing solutions that ultimately will push costs down, while more importantly, providing better, quicker and more interaction with primary and secondary care givers. From patient and doctor portals, to systems that predict the kinds of tests and precautionary measures individuals need, healthcare technology is leading the way to true reform in the industry.
Click here to read the entire article about technology and costs in healthcare.
Comments about the Axis Technical Group Blog? email us here.
Click Here to learn more about Axis Technical Group, or follow us on Twitter , Facebook , and LinkedIn .
