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Information Technology & Health Care Industry

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The information revolution has changed the way that companies do business in a variety of fields. Computers and the large amount of information that they can process quickly have brought numerous innovations to businesses from the way that paperwork is handled to the way that manufacturing is accomplished and transactions processed. The healthcare industry has not been left out of this revolution. Imaging technology as well as changes in telecommunications have resulted in remote access to specialists which previously would have been unavailable. Improved transaction processing means that providers receive payment more quickly, and records of patients are maintained more easily through database management systems. This research considers the effect of information technology on the healthcare industry and offers recommendations on where the industry as a whole is likely to be headed.

Information technology in the healthcare industry is used primarily in two distinct areas: providing medical services, and administrative tasks (Gabler, 1993, p. 20). The medical services provided by information technology include a wide range of technologies, including improved radiologic techniques and the ability of physicians to access databases which can help in the diagnostic process.

One of the more exciting developments in this area is the technology associated with telemedicine. In one Texas community, Baylor Health Care System is ab

. . .
y has had a significant effect on the healthcare industry. Communication in the healthcare industry is a cornerstone of its success. Patients must be able to communicate with providers; providers must be able to communicate with payers. Healthcare information networks (HINs) are one result of this communication need coupled with information technology. HINs are multi-service systems where services can be added on an as-needed basis. When HINs are implemented carefully, they can result in all participants (employers, patients, payers and providers) being able to communicate quickly and easily with each other (Gabler, 1993, p. 21). HINs are also able to reduce administrative costs because verification of insurance eligibility and claims submission can happen over the network instead of requiring manual intervention. Issues Involved Although information technology has already had a significant effect on the healthcare industry, there are several areas which need to be considered. Chief among these is the standard for communications protocol and even for the type of systems that are put into place. For example, while wide area networks (WANs) have gained acceptance as being ideal for use in the area of telemedicine, client/s
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Approximate Word count = 1460
Approximate Pages = 6 (250 words per page)

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