Effect of Electronic Prescribing With Formulary Decision Support on Medication Use and Cost

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Abstract
Escalating health care costs are a major policy concern, and health information technology has been promoted as a tool for realizing large savings,1,2 although the evidence for how effectively this technology can reduce costs remains limited.3 Prescription drug costs account for a significant proportion of medical spending and have been increasing rapidly.4,5 Insurers and policymakers have tried several measures to control drug costs. The Veterans Health Administration reduced spending by instituting a narrow drug formulary.6 Some states have enacted regulations requiring that pharmacists substitute a generic medication whenever one is available,7 and some insurers have used financial incentives for physicians who prescribe more generic medications.8