THE CONVERGENCE OF HEALTH INFORMATION TECHNOLOGY AND INSOLVENCY

• NYC Health + Hospitals will revamp its management framework over the next few months, Becker’s Hospital Review reported.
• In a statement to the publication, the health system said it is “redesigning [its] management structure to create a more efficient and financially sustainable organization that can direct resources where we need them most — at the front line of patient care.”

The most recent financial audit clearly shows (although not noted) the correlation between losses and cost of the electronic health record system.

The announcement follows last month’s release of unaudited financial statements showing a $776 million operating loss in the fiscal 2017 first half. Roughly $78 million in municipal contributions brought the public health system’s net loss to $736 million.

The beleaguered system has weathered a string of bad news, from multi-year operating losses to an exiting CMIO’s criticism of launch preparations for a $764 million EHR system. And physicians have complained that the system’s quality goals are too high and threaten the loss of tens of thousands of dollars in incentive payments.

This health system is not unique. The federal government's intense and hasty requirement to bring information technology to health care is disrupting prudent financial planning by threatening to penalize those who do not comply with rigid requirments.  So far the only segment that is gaining income, at the expense of health providers, is hardware and software vendors.
The IT offerings have not proven to have substantial return on investment.

The coming 'reinvention of ObamaCare" promises a new opportunity to carefully evaluate the role of new technology and the ROI of what is now in place.

NYC Health Hospitals plans management makeover | Healthcare Dive