The Rand Corp. study says that while creating such an identification system could cost as much as $11 billion, the effort would likely return even more in benefits to the nation's healthcare system.

"Establishing a system of unique patient identification numbers would help the nation to enjoy the full benefits of electronic medical records and improve the quality of medical care," lead author Richard Hillestad says in a statement. "The alternative is to rely on a system that produces too many errors and puts patients' privacy at risk."

Federal legislation passed more than a decade ago supported the creation of a unique patient identifier system, but privacy and security concerns have stalled efforts, Hillestad says.

The study also concludes that many of the privacy concerns related to a unique patient identification system could be addressed through the creation and enforcement of laws that severely punish those who misuse information retrieved with a health identification number.