Patient privacy concerns are often a crucial part of the process for healthcare facilities aiming to adopt electronic medical records (EMRs). This is an important issue, as most of new software systems rely on the sharing of information to be completely effective. Fears surrounding the protection of patient privacy are often focused on the possibility of identity theft or fraud, and according to the Journal of the American Medical Association, a debate is ongoing regarding the issue of who – the patient or the clinic – actually owns the rights to electronic medical information.

When dealing with paper records, it is easier to apply the concept of ownership, but the freedom that is inherent to digital storage media makes it a much more challenging issue. As it stands, any business entity that sets out to act as an intermediary, compiling patient medical information in “bundles” to use it for marketing or research purposes, must have clear patient permission to use the information. Unfortunately, the recent push to support widespread adoption of EMRs has caused some states to pass tough new privacy laws in an attempt to protect citizens, and these laws are working to decrease the overall effectiveness of EMR software systems.

In fact, according to a recent study by the Massachusetts Institute of Technology, which appears in the Management Science Journal, hospitals have seen a decline in EMR adoption in states where privacy laws restrict their effectiveness. These states have also seen an 11 percent reduction in EMR adoption over a three-year period. Comparatively, states that have no “beefed up” privacy laws have seen a 21 percent gain in the same time period. Interestingly, a recent report by the American Association of Homes and Services for the Aging found that nursing homes are leading the healthcare industry for having the total number of EMR software systems that are currently being adopted.

The study goes on to say that, in states with strict privacy laws meant to restrict EMRs, networks of hospitals and individual medical providers are the most affected, becoming the least likely healthcare entities to adopt digital recordkeeping systems. Conversely, in states without these laws and regulations, it is common for all hospitals in a region to decide to go digital at once. The good news is that, with the support of the Federal Stimulus Package, lawmakers are actively trying to find a way to encourage the widespread adoption of EMRs, while still providing patients with the privacy and security they demand.