Aside from making providers eligible for significant incentive payments from the government, electronic health records could help medical professionals reduce their costs down the road. With healthcare expenses continuing to rise, this may be more of an incentive to adopt the technology than any program offered by the government.

As an example of the cost-cutting power of EHRs, a recent paper compiled by the Gartner Group showed that the state of Texas saved $1 billion over the last 10 years by using EHR systems to track the medical records of prisoners.

Texas has one of the largest inmate populations of any state in the U.S. With the cost of treating these individuals continuing to rise at rapid rates, the state was on an unsustainable path. However, the savings generated by the use of EHRs could help make the system more financially stable.

These types of cost reductions are not unique to large, state-run operations. Many smaller practices may also be able to attain them. A recent paper from the Congressional Budget Office said that when EHR systems are implemented properly, they can generate savings in a number of ways, including by reducing the number of unnecessary tests and prompting doctors to prescribe generic medications.