In most fields, technological progress is generally cost-reducing as individuals discover more effective ways of accomplishing things that were already being done, the paper stated. In medicine, however, technological progress in recent decades has been almost exclusively cost-increasing, without generating a commensurate increase in value. Undoubtedly, provider incentives, which largely reward finding an expensive way of treating a previously untreated condition rather than finding a less costly alternative to an existing treatment, contribute to this trend, the council stated. Nevertheless, the council estimated potential savings generated by overall healthcare reform could amount to as much as $1.7 trillion over 10 years. Read the report here.

Shameless plug: I'll be moderating a Wednesday panel of health IT experts at the Computers, Freedom and Privacy conference at George Washington University. Speakers include: Deven McGraw, director of the Health Privacy Project at the Center for Democracy and Technology; Patient Privacy Rights Executive Director Ashley Katz; Joel Slackman, managing director for the Office of Policy and Representation at BlueCross BlueShield; e-MDs CEO Michael Stearns; and Microsoft Director of Consumer Affairs Frank Torres.

Always enjoy your writing. Have to raise a point on this posting though.  The CEA report talks about the positive role of health IT in two instances: 

-Increasing the rate of information diffusal and exchange

-HIT support of better performance measurement

All of the potential perils it raises are related to the over-use and over-adoption of medical technology, not health information technology. Just wanted to make that clarification.

Cheers,

Brian Wagner
eHealth Initiative