Use of Information Technology in Hospitals

Gao ID: T-IMTEC-88-4 May 24, 1988

GAO discussed the use of information systems in hospitals, comparing the Veterans Administration's (VA) and the Department of Defense's (DOD) systems with commercial systems in nonfederal hospitals. GAO found that: (1) integrated hospital information systems improved patient relations and the accuracy, availability, and timeliness of medical and management information; (2) both VA and DOD concluded that they needed individually developed information systems, since the commercial systems were not sufficiently comprehensive; and (3) VA estimated that its system would cost $925 million, and DOD estimated its system costs at about $1 billion. GAO also found that, although a number of firms could develop hospital information systems, impediments to installation of such systems included the: (1) small size of most hospitals; (2) cost of automation; and (3) lack of evidence indicating future cost savings.



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