Press Release

Legislative Committees Discuss Ground-Breaking Technologies in Healthcare
Joint Committees visit the Massachusetts Technology Collaborative in Westborough to discuss potential cost savings and improved patient care

May 5, 2005

WESTBOROUGH, MA – Two joint legislative committees visited the Massachusetts Technology Collaborative for a field hearing regarding the latest information on new developments in health care technologies. The hearing, “Saving Lives and Reducing Costs in Health Care,” was led by the Joint Committee on Health Care Financing, Senator Richard T. Moore and Representative Patricia A. Walrath, Co-Chairs, and the Joint Committee on Economic Development and Emerging Technologies, Senator Jack Hart and Representative Daniel E. Bosley, Co-Chairs.

Rep. Bosley, Sen. Hart, Sen. Moore, Rep. Walrath and Rep. Scibak

Much of the testimony focused on cutting-edge computer applications including Computerized Physician Order Entry (CPOE), which is used by physicians to order medications, lab work and other diagnostic tests for patients. In a December 2004 report, the Massachusetts Technology Collaborative and the New England Healthcare Institute issued a report on CPOE, which found that patient safety and quality of patient care could be vastly improved if the system were fully implemented in all acute care hospitals. The full report is available here.

Currently, 70% of hospitals in Massachusetts, or 46 institutions, have not implemented the CPOE technology. Some of the reasons frequently cited for this failure include high capital costs of the equipment, inadequate payment systems, and cultural resistance to change.

“It’s clear that technology in health care can save both lives and money,” said Senator Moore. “State government has a role to play as a catalyst for improving health care by being a key partner with health providers in making sound investment in cost-effective care.”

“Massachusetts remains a national leader in the health care technology industry,” stated Senator Hart. “I’m pleased to listen to innovative ideas developed by important business and government leaders.”

“The insatiable demand of health care spending in Massachusetts is beginning to eat into every area of state spending,” said Representative Walrath. “After paying for skyrocketing health care costs, there is very little money left over to restore cut programs and make new investments. And so I welcome MTC’s innovative ideas to reduce health care costs while improving care. I hope that collaborating with them will lead to real savings in health care spending and ease some of the mounting strain on the state budget.”

“In order for us to make costs more manageable yet still serve the demands of all the people served by our health care system, we need to take advantage of new technologies”, said Representative Bosley. “It is vital that we have a system that is efficient and reliable, and one that benefits both providers and patients alike. I look forward to working with the MTC, and congratulate them on their initiative in taking a leadership role in this important endeavor.”

The price tag for implementing life-saving computer systems in all Massachusetts hospitals is approximately $210 million, which would be offset by projected net savings of $275 million annually. More importantly, these systems could save as many as 500 patient lives each year.

“We are extremely grateful to the committees and respective chairmen for visiting us today and expressing their interest in this important topic,” said MTC Executive Director Mitchell Adams. “Each year in the U.S., 215,000 patients are harmed and nearly 7,000 people die due to medication errors that we could prevent. If implemented nationally, this cutting-edge technology can save lives and reduce the estimated $2 billion in costs created by medical errors.”