IT & its impact on issues relating to consumer behavior
with reference to healthcare

Dr. Vijay Pithadia
C P S Tech, M Comm, Ph.D.
Department of Management Studies
Karpagam Arts & Science College
Coimbatore TN
E-mail :  /
Dr. T A Venkatachalam
M Tech, MBA, Ph.D.
Professor and Director
Department of Management Studies
Karpagam Engineering College
Coimbatore TN


In the paper we are tried to focus on digital technology and its impact towards consumer behavior of health care sector. Right now in India such Hospital Organization are doing good efforts in same areas i.e. Apollo Hospitals, Escorts Heart Research Center, All India Institute of Medical Sciences, Sanjiv Gandhi PG Medical Research Center etc. We anticipate from IT and its good impact on human beings with reference to health care.

Key Words:

Digital revolution, Integrating hospital information system, upgrading the Coding System, Verify patient information, Patient ID System, Inventory of Healthcare Technology

Availability of data:

Data are available from public sources identified in the study.


We reconcer Jan A Pusyznski [South Dakota School of Mines & Technology], M Gangadhara Rao [Gandhi Institute of Technology & Management], Bob G Kilpatrick [Northern Arizona University], G C Maheshwari [M S University of Baroda], Charles E Bamford [Texas Christian University], Shanmugasundaram [Periyar University], Richard J Iikka [University of Wisconsin - Stevens Point], Uma Jain [Academy of HRD], Charles E Davis [Baylor University], Pratapsinh Chauhan [Saurashtra University], Yvome Henderson, [Colorado Mountain College], Parimal Vyas [S P University], Keith G Stanga [The University of Tennessee], Anoop Singh [Nirma University], A R Chaudhury [Kent State Universtiy], Nageshwara Rao [Vikram University], A S Kantawala [M S University of Baroda], V C Venkatash [Technology University], Afsad Irani [University of New Hampshire], Devendra Kumar Pant [National Council of Applied Economic Research], Sudarsanan Pillai, Cochin University of Science & Technology, K M Bhuptani [V V P Engin
eering College] & Carrol Haggard [Fort Hays State University] for conception & remarks. We appreciate the efforts of our MBA Students Manikuttan, Vimal Bhasi & Reji K M for research Coad Juvancy.


While the digital revolution has been felt in every industry, nowhere has it been more visible than in health care. The introduction of wireless and other advanced technologies as critical business tools has impacted every aspect of medicine--from research to diagnostics, and surgery to record keeping. And, it's constantly evolving thanks to the advent of new technologies. While this isn't big news, what is news is how hospital design is changing because of it.

As the first paperless hospitals come online, the industry is moving away from traditional nursing stations and standard patient rooms. In their place are facilities that respond extremely well to the actual progress of moving patients through them--not to mention the reality of reduced clinical staff--thanks to a combination of design and technology.

For example, in today's newer hospital a patient admitted from the Emergency Department would be whisked to an inpatient room that's slightly larger than the old standard (it's bigger to accommodate diagnostic machines at the bedside). This would all take place in an unconventionally shaped patient floor that enables busy caregivers to monitor many patients at once.

In addition to mobile diagnostic devices, hospitals are increasingly using handheld wireless units that go beyond the first generation of computerized provider order entry systems. These can do everything: track lab specimens, provide up-to-date information on patient tests, communicate with the hospital's pharmacy, coordinate prescriptions and prevent negative drug interactions.

These units rely on either wireless radio or third-generation cellular technology, which is capable of such wizardry as voice command communication. This allows caregivers to call for specific assistance without leaving the patient room. A nurse can identify the room, the patient and the kind of help she needs just by talking. Sophisticated communications systems take it from there and notify the proper staff. These automated alert notifications would prompt staff that emergent care is required, provide reminders for therapy progress and notify the proper staff, who can then download information about the patient onto their wireless device as they're speeding to the room.

This on-the-fly information download is made possible by electronic medical records (EMR) that use bar-coded, manually entered or voice-dictated data to track patients, caregivers and test results. New "hurricane" or "cloverleaf" patient floor layouts, which arrange patient rooms on short arras extending from an abbreviated nursing station, expedite the physical process. This layout shortens the distance between patient rooms, and from patient rooms to supply rooms.

The role of the nursing station is diminished too, now that paper charts have been replaced with small handheld devices and clinical staff is aided in care giving by patients' families. Meanwhile, radiologists can communicate test results more quickly with both patients and their families (in a day instead of a week, for instance), thanks to digital image sharing.

Integrating hospital information system

Previously, the hospital needed 7-10 days after a typical outpatient visit to process the paperwork and generate the bill. Now patient data is transferred electronically between the hospital information system and the coding system, eliminating data re-entry and the need to hand carry documents between departments. DRG codes assigned by the coding software are electronically uploaded to the hospital information system and immediately available for billing. Outpatient charges may be billed within 24 hours of the visit. While this integration is helping improve the hospital's financial performance, the coding software alone is boosting productivity by speeding a formerly manual chore.

By integrating its hospital information system with diagnosis-related group clinical coding software, Harper County Hospital in Harper, KS, was able to send bills out sooner, resulting in a lower accounts receivable and improved cash flow. The hospital includes 38 beds for acute care, 18 beds for long-term care, and a swing bed skilled care unit.

Upgrading the Coding System

In the past, the hospital used a manual process to assign DRG codes to procedures. Coding was done by one person who spent 40 hours per week going through patients' charts, looking up their diagnoses and the services they received in the ICD-9 and CPT-4 manuals, and used a tree to get to the appropriate DRG.

These problems, combined with a growing volume of coding, led Harper to consider automating the process by installing software that automatically assigns DRG codes. The hospital chose Clinical Coding Expert from IRP Systems Inc., Billerica, MA, because in addition to appearing easy to use, its price per month was much less than other systems Harper evaluated.

The software also handles the complex APC coding for ambulatory visits. Clinical Coding Expert's APC Processing feature accurately assigns APC by evaluating the diagnoses and procedure codes and groupings in accordance with OPPS regulations. Hospital management decided to replace the mainframe system with networked PCs, needed new business software to replace the mainframe programs, and needed the new system to be integrated with the coding system.

The evaluation process turned up a hospital information system called Cardinal 2000 from Remote Support Services (RSS) that met Harper County's requirements. The vendor is a Springfield, MO-based software Development Company that provides health information systems for small to medium size hospitals. Cardinal 2000, which fit Harper's budget, includes modules for accounts receivable, accounts payable, general ledger, payroll, collections, asset management, clinic and physician billing, medical records, electronic RMA, insurance logs, state agency Systems provided an interface linking Cardinal 2000 with Clinical Coding Expert. The use of paper forms to transmit information between departments had been eliminated.

Verify patient information

One serious ailment affecting the healthcare industry is uncompensated care. But, thanks to some recent technological advancement, providers have a number of accurate and reliable methods available to them for reducing uncompensated care. By harnessing the power of a patient ID verification system, hospital facilities can now verify demographics, reduce fraud, increase productivity, manage costs, and more easily comply with paperwork reduction requirements.

Defining the System

A patient ID verification system delivers accurate patient information, such as demographics and financial information, directly to a facility's registration system, eliminating duplicate data entry and improving the registration process flow. Systems of this type can help prevent erroneous information from entering into the billing process during patient registration.

The validated patient information is obtained from one of the three major consumer credit reporting agencies - Trans Union, Equifax, and Experian That information is updated on a daily basis and relied upon for millions of secure financial transactions.

Making the Patient ID System

Each time there is patient contact; the potential exists for mistaken identity. When registration processes rely on self-reported and subjective patient information, healthcare facilities are more vulnerable to errors, outdated or mistaken information, and even outright fraud.

An example is an injured, but conscious, patient entering the emergency room without identification or an insurance card. With a patient ID verification system, the facility could confirm his name, address, and other pertinent information prior to discharge, enabling the facility to process and submit the bill in a seamless process.

Properly designing and using a patient ID verification solution in clinical applications can streamline many hospital processes. The healthcare-related areas that can be positively affected by patient ID verification include admissions, business office, financial counseling, medical records, collections, discharge, donor programs, and clinical research/follow-up.

Many healthcare institutions are concerned if patient ID verification could affect compliance with the regulations outlined in HIPAA and EMTALA. In fact, patient ID verification can help a healthcare organization in following the guidelines by bringing electronic identification solutions to what were primarily manual processes.

Inventory Of Healthcare Technology

In order to conduct a risk assessment of sensitive healthcare technology, healthcare organizations will need to identify all of their sensitive healthcare technology. This would include any healthcare technology that is used to monitor, diagnose and analyze the health of the patient.

In addition, health information that is generated, stored and/or transmitted by the healthcare technology may require compliance with privacy and security regulations. Healthcare technologies that are connected to networks (i.e. LAN, WAN, Interact, intranet, Extranet, Partner networks or modems) are at higher risk and should be noted in the inventory.

Inventory Of Electronic Protected Health Information

To conduct a risk assessment of electronic protected health information for regulatory compliance, an organization must identify all of the business processes and system applications, computers, databases, and networks that store and transmit PHI, as well as the healthcare technology, which in turn is monitoring, aggregating, storing (logging), analyzing (diagnosing), transmitting, and/or utilizing electronic protected health information. The application (i.e. Web servers, databases, etc.), computer and network infrastructure should also be documented.


Each year, healthcare organizations and their professionals become more dependent on technology. With devices such as tablet PCs, PDA and wireless networks connecting them to electronic patient health information (PHI), the need to secure the technology from privacy breeches has become a veritable priority for health information executives.

Assessing the threats, vulnerabilities and exposure in an organization's IT infrastructure is the first step to mitigating risk. Several procedures can be used to identify the risks to sensitive health information and healthcare technology.


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Dr. Vijay Pithadia
C P S Tech, M Comm, Ph.D.
Department of Management Studies
Karpagam Arts & Science College
Coimbatore TN
E-mail :  /
Dr. T A Venkatachalam
M Tech, MBA, Ph.D.
Professor and Director
Department of Management Studies
Karpagam Engineering College
Coimbatore TN

Source : E-mail June 15, 2004




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