In general, IT allows health care providers to collect, store,retrieve, and transfer information electronically. However,more specific discussion of IT in health care is challenging due to the lack of precise definitions, the volume of applications, and a rapid pace of change in technology. Similar terms can be used to define different products, and the exact functions of a system will depend on the specifics of its implementation in a given setting. Both the terms and the functions also change over time. For example, computerized provider order entry (CPOE), which can minimize handwriting or other communication errors by having physicians or other providers enter orders into a computer system, can apply only to prescription drugs, or may also include additional physician orders, such as x-rays or other images, consultations, and transfers. For electronic health records (EHRs, also known as electronic medical records, automated medical records, and computer-based patient records, among other names), multiple definitions exist, depending on the constellation of functions that are included (Brailler and Tarasawa 2003). They can be used simply as a passive tool to store patient information or can include multiple decision support functions, such as individualized patient reminders and prescribing alerts.

When purchasing IT, providers must consider multiple functions and literally hundreds of applications offered by numerous vendors. In general, the various IT applications fall into three categories:

• administrative and financial systems that facilitate billing, accounting, and other administrative tasks;
• clinical systems that facilitate or provide input into the care process; and
• infrastructure that supports both the administrative and clinical applications.

Table 7-1 provides examples of IT applications in hospitals and physicians’ offices; the accompanying text box (p. 160) provides definitions for various clinical systems and other terms used in IT discussions.

Health Care Industry : Type Of Application