Return on Investment for a Computerized Physician Order Entry System

Although computerized physician order entry (CPOE) may decrease errors and improve quality, hospital adoption has been slow. The high costs and limited data on financial benefits of CPOE systems are a major barrier to adoption. The authors assessed the costs and financial benefits of the CPOE system at Brigham and Women's Hospital (BWH), a 720-adult bed, tertiary care, academic hospital in Boston, over 10 years. Benefits were determined from published studies of the BWH CPOE system, interviews with hospital experts, and relevant internal documents. The culture at BWH is very supportive of informatics. Over 10 years, the system saved BWH $28.5 million for cumulative net savings of $16.7 million and net operating budget savings of $9.5 million, given the institutional 80% prospective reimbursement rate. The CPOE system at BWH has resulted in substantial savings, including operating budget savings, to the institution over 10 years. Other hospitals may be able to save money and improve patient safety by investing in CPOE systems.