The ability to electronically manage prescriptions, known as e-prescribing, works by transmitting prescription information directly to pharmacies using a secure Internet connection via a digital handheld device or computer, and is one of the major advantages to using an electronic medical record (EMR) software system. Although many physicians still use the old “paper and pen” method, e-prescribing is quickly gaining in popularity as more facilities begin to realize the added safety, efficiency and quality of service it provides.

Since the software automatically scans each patient’s drug history for risks, e-prescribing has been found to significantly reduce dangerous mistakes, including instances of adverse interactions with other medication, drug allergies and improper dosages. Also, the systems can often allow physicians to see a comprehensive list of every medication that a patient is taking, eliminating the worry that he or she could forget to mention something. The increased popularity of e-prescribing also encourages the broader adoption of EMR software systems, as many of the programs can work together and include complete medical histories, reminder alerts and a wide variety of lab reports in addition to e-prescribing capabilities.

Incentives that are currently being offered by the Center for Medicare & Medicaid Services (CMS) are another big reason why so many physicians and hospitals are now working to adopt an e-prescribing system. Healthcare facilities and practices that prescribe electronically will receive a 2 percent bonus for all Medicare payments in 2010, a 1 percent bonus in 2011 and 2012, and a .05 percent bonus in 2013. In addition, Medicare plans to enforce a penalty on payments to doctors and hospitals that choose not to e-prescribe, amounting to a 1 percent reduction in payments beginning in 2012, and jumping to a 2 percent reduction in payments by 2014.

Another benefit to e-prescribing systems is the cost savings that is associated with the physician’s ability to quickly and easily search for the price of generic drugs that are covered by a patient’s health plan. In fact, a recent study by the Archives of Internal Medicine found that doctors at Brigham and Women’s Hospital in Boston, Massachusetts, were able to reduce the cost of delivering medication to patients by $845,000 annually for every 100,000 patients, simply by adopting an e-prescribing system.

Although barriers still exist that prevent some doctors and hospitals from adopting an EMR and/or e-prescribing software system, there is little doubt that digital recordkeeping and prescription management systems will continue to receive added attention and become more common in the years to come. Most experts agree that all healthcare facilities – from small clinics to large institutions – will eventually choose to adopt these new technologies as their usefulness is consistently proven to outweigh any potential drawbacks.