Information Technology and Hospital Closures

Strategic investments in information and medical technology are changing the financial viability of community hospitals. An electronic medical record with interfaces with all major medical devices is a prerequisite for supporting physicians at various remote locations. High-speed access by physicians to voice, pictures, and data in the hospital information system is becoming a common characteristics of proactive community hospitals. Financial pressures from timing differences, delays in collection, supporting transition periods for new technology, payment reductions with the Balance Budget Act of 1997, fraud and abuse activities, and lack of information systems support for physicians will result in 800 hospital closures and mergers of distressed community hospitals over the next 60 months.