Management Systems Does the Implementation Essay

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2. Some experts state that full enterprise wide implementation of the HIT details of the Health Information Technology for Economic and Clinical Health Act could cost as much as $100,000 per hospital bed, most of which will not be reimbursed by government subsidies (the Economist, World Edition, 2010). What is the impact of this on already tight budgets?

The estimated cost of a full enterprise-wide implementation of the HIT details would easily cost $100,000 or more when burdened with salaries and the costs of training and change management programs. This will lead to healthcare budgets having to do increase fees, push the costs forward through the value chain, ultimately driving up the cost per care. It is common in highly regulated healthcare industries to lose track of just who the customer is, as is shown in the many case studies and which can be inferred from the lessons learned in the course (Hickman, Smaltz, 2008) (Tan, Payton, 2010).

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Once the customer is no longer being seen as the patient and the healthcare insurance provider is, the cost increases aren't scrutinized and looked at. The fact is that with such a large price tag per bed, the patient will end up carrying the majority of the cost and the insurance provider will become even more selective in who is authorized for treatment. In short, the entire value chain of healthcare providers begins to contract as each member of it seeks to protect itself from the severe risk of this requirement. All aspects of the value chain will seek to unify and mitigate, even eliminate this risk, yet will most likely begin being much more selectively about which patients get treatment, for which specific ailments, and will also be required to underwrite this cost more than any other member of the value chain......

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