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According to the lecture, which entity would financially gain the most by the adoption and use of EHRs and engagement in HIE?

a. Hospitals
b. Physicians
c. Payors
d. Consumer-governed health care cooperatives

User GeLB
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1 Answer

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Final answer:

Hospitals, particularly those that are part of larger systems or HMOs, are likely to financially benefit the most from the adoption and use of EHRs and engagement in HIE because these technologies can enhance efficiency and reduce unnecessary service provision.

Step-by-step explanation:

According to the lecture, evaluating who would financially gain the most by the adoption and use of EHRs (Electronic Health Records) and engagement in HIE (Health Information Exchange) depends on the structure of health care financing. In a fee-for-service system, healthcare providers are incentivized to provide more services, as they are paid for each service rendered. Health Maintenance Organizations (HMOs), however, offer a different approach, providing a fixed reimbursement based on the number of patients rather than the quantity of services. This model encourages providers to be more efficient in resource allocation to avoid over-utilization. Adverse selection is another concern in insurance markets, affecting payors more when high-risk parties tend to opt into insurance plans because they perceive them as beneficial while low-risk parties avoid them due to higher perceived costs.

Hospitals, especially those that are part of larger systems that have consolidated to improve efficiency, may see significant benefits from EHRs and HIE as they streamline operations and potentially reduce duplicate services. However, HMOs and other managed care organizations, which receive fixed payments per enrollee, also stand to gain as EHRs and HIE can help in managing patient care more effectively and in reducing the moral hazard of providing unnecessary services. Thus, hospitals that operate within HMOs or similar structures might see the most financial gains from these systems.

User Nissim
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