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Digital Hospital
The Digital Hospital

How info tech saves lives and money at one medical center. Is this the future of health care?

Peter A. Gross has been a doctor for 40 years, rising up the ranks to become the chairman of internal medicine at Hackensack University Medical Center in Hackensack, N.J. But one day this winter, a homeless man checked in to the hospital with HIV, and Gross made a decision that could have seriously harmed his patient. He chose to give the patient an HIV drug, tapping a request into a hospital computer and zapping it off to the two-year-old digital drug-order entry system. Moments later he got back a message he never would have received before the system was in place: a warning that the drug could mix dangerously with an antidepressant the patient was already taking. Gross got on the phone to figure out the problem, eventually asking the man's psychiatrist to reduce the dosage of his antidepressant. "There's no way I would have picked that up," Gross says. "It was totally unexpected." Advertisement

Scenes like this are unfolding across the country, providing a glimpse into the potential of information technology to transform the health-care industry. Hackensack is one of the nation's most aggressive tech adopters. Millions of dollars in investments have paid for projects well beyond the online drug system that tipped off Gross. Doctors can tap an internal Web site to examine X-rays from a PC anywhere. Patients can use 37-inch plasma TVs in their rooms to surf the Net for information about their medical conditions. There's even a life-size robot, Mr. Rounder, that doctors can control from their laptops at home. They direct the digital doc, complete with white lab coat and stethoscope, into hospital rooms and use two-way video to discuss patients' conditions.

Whimsical? Maybe, but Hackensack's results are perfectly serious. Patient mortality rates are down. Quality of care is up. At the same time, productivity is rising. While these are early days and plenty of hurdles remain, the hospital has no doubts that its technology investments are making the difference. "We could never become a top hospital unless we were tops in tech," says John P. Ferguson, the hospital's chief executive.

Is this the health-care industry's future? It would be a startling reversal. For years health care has missed out on the huge benefits that information technology has bestowed upon the rest of the economy. Hospitals were not only cheapskates when it came to investing in computers and Web technologies but also had a knack for wasting the money they did spend. During the 1990s, productivity in health-care services declined, according to estimates from Economy.com Inc. That's a huge underachievement in a decade of strong gains for the overall economy.

All of that may be beginning to change. Hospitals such as Hackensack, along with insurers and the government, are stepping up their investments in technology. For hospitals, there's more motivation than ever: The government and private insurers are beginning to pay hospitals more for higher-quality care -- and the only way to measure quality, and then improve it, is with more information technology. Hospital spending on such gear is expected to climb to $30.5 billion next year, from $25.8 billion in 2004, according to researcher Dorenfest Group.

Dollars are dandy. Even more important, though, hospitals finally seem to be figuring out how to make their tech investments pay off. Clumsy, sluggish first-generation systems have been tossed out. Hospitals are listening to doctors and nurses and installing laptops, software, and Net technologies fine-tuned to the rhythms of their work. The results are beginning to show up in national statistics: Economy.com figures that health-care services productivity has risen about 2% annually since 2001, albeit at a slower pace than the overall economy.

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