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According to the Institute of Medicine (IOM) in "Preventing Medication Errors", 2006, at least 1.5 million Americans are injured annually from Adverse Drug Events (ADEs), creating costs in excess of $3.5 billion.  The IOM also reports that more than 7,000 Americans are killed each year by preventable medication errors and recommends all prescriptions be written electronically by 2010.

8.8 million ADEs occur each year in ambulatory care, of which more than 3 million are preventable.  Medication errors account for 1 out of 131 ambulatory care deaths.  According to the Institute for Safe Medication Practices, many errors result from:

• Miscommunication due to illegible handwriting
• Unclear abbreviations and dose designations
• Unclear telephone or verbal orders
• Ambiguous orders and fax-related problems

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