The Cost of EHR Implementation
The cost of implementing an Electronic Health Record system, or EHR is often said to be the main reason why physicians are apprehensive in moving forward with this technology. Although many studies indicate that instituting an EHR will become profitable not only for the practice but also improving our nation’s healthcare delivery systems, few physician practices are embracing this concept.
Adopting an EHR is an expensive proposition, especially for small independent dialysis facilities. Our experience at Gaia Software has taught us that these initial costs will pay off in the short run, less than one year. Well managed EHRs have the potential to provide substantial cost benefits to healthcare providers by facilitating workflow and improving the quality of patient care and safety.
There are two main categories of cost associated with implementing an EHR: system cost and induced cost. System costs are straight forward and include the cost of the software, hardware, training, implementation, maintenance, and support. The induced costs are a little harder to pin down and can vary by organization. These involve costs associated with the transition from paper to an electronic system, such as increased staffing hours for training on the new system, additional technical support, and network administration.
Facilities will also see a temporary loss of production as their staff is learning to incorporate the new system into their daily routine. This loss of productivity is highest in the first month of implementation with productivity returning to baseline levels on average within the first quarter of use. While these costs are well documented and are legitimate concerns, many physicians fail to look at the larger picture by weighing the initial cost versus the long range benefits.
The return on investment when implementing an EHR won’t happen overnight. Yet as use of the system increases so will the financial benefits. Facilities will benefit from having all their medical records stored in a centralized database, easily accessible from any location. By documenting all treatment activities one an EHR system, facilities will see a revenue increase by electronically capturing 100% of billable patient charges through charting. Facilities will also benefit from increased revenue due to averted costs as a result of decreased utilization.
Facilities can reduce costs associated with paper chart pulls over time and increase productivity by improving workflow. Through improved documentation and systemic auditing, facilities are able to reduce adverse drug events, and reduce time devoted to trending laboratory tests, while improving patient care.
Over time, when implemented correctly, an EHR system will pay for itself. Yet as with any change patience and commitment are key to a successful implementation of an EHR. Facilities and their staff must be proactive in using and learning the system for these benefits to take effect. Gaia Software has numerous years as the catalyst in assisting facility users in adopting technological changes; we are committed to helping our customers navigate the often rough waters of EHR adoption.
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