OBJECTIVE—To determine the financial and clinical benefits of implementing information technology (IT)-enabled disease management systems. RESEARCH DESIGN AND METHODS—A computer model was created to project the impact of IT-enabled disease management on care processes, clinical outcomes, and medical costs for patients with type 2 diabetes aged >25 years in the U.S. Several ITs were modeled (e.g., diabetes registries, computerized decision support, remote monitoring, patient self-management systems, and payer-based systems). Estimates of care process improvements were derived from published literature. Simulations projected outcomes for both payer and provider organizations, scaled to the national level. The primary outcome was medical cost savings, in 2004 U.S. dollars discounted at 5%. Secondary measures include reduction of cardiovascular, cerebrovascular, neuropathy, nephropathy, and retinopathy clinical outcomes. RESULTS—All forms of IT-enabled disease management improved the health of patients with diabetes and reduced health care expenditures. Over 10 years, diabetes registries saved $14.5 billion, computerized decision support saved $10.7 billion, payer-centered technologies saved $7.10 billion, remote monitoring saved $326 million, self-management saved $285 million, and integrated provider-patient systems saved $16.9 billion. CONCLUSIONS—IT-enabled diabetes management has the potential to improve care processes, delay diabetes complications, and save health care dollars. Of existing systems, provider-centered technologies such as diabetes registries currently show the most potential for benefit. Fully integrated provider-patient systems would have even greater potential for benefit. These benefits must be weighed against the implementation costs.

As a result of the high cost of diabetes, an array of interventions for managing this disease has been developed. Estimating the cost of various approaches to diabetes disease management is critical to inform purchasing decisions. This review focuses on 5 provider- and payer-sponsored diabetes management approaches that use information technology (IT) and provides cost estimates for each approach based on a literature review and interviews with 38 provider practices, hospitals, payers, and vendors. Cost estimates are reported for "typical" small, medium, and large provider practices and payers. Provider-sponsored diabetes registries are estimated to be the least expensive approach for small and medium sized practices. For large practices with electronic health record systems, modifying such systems with diabetes-specific clinical decision support capabilities is projected to be the most economical approach. While limited data prevented the inclusion of all implementation costs, these projections serve as a starting point to inform the purchasing decisions of organizations planning to introduce IT-enabled diabetes management.