Though the HITECH Act incentivized the industry-wide shift to electronic health records (along with the Meaningful Use criteria, which were later repurposed into the MIPS programme), many doctors did not see the HHS’ financial incentives as compelling enough to make the switch. It’s easy to see why: EHRs are notoriously difficult to use, have lengthy implementation timelines, necessitate employees learning new processes and tools, and are typically – and most importantly – very, very expensive.
Despite the high cost, there are some obvious advantages to making the switch. When used properly, EHRs make it easier to manage patients’ care by:
- At the point of care, providing accurate, up-to-date, and complete information.
- Providing easy access to a patient’s medical history and other records.
- Giving practices the ability to securely share information with patients and other clinicians.
- Promoting legible and complete documentation in order to improve billing and coding accuracy.
- Errors in documentation and duplicate records are being reduced.
How Much Does EHR Implementation Cost?
Several studies have estimated that the total cost of purchasing and installing the systems required to implement EHR ranges between $15,000 and $70,000 over the years. While costs obviously vary depending on the size of the practice, the average practice recovers the initial cost of its EHR system in about 2.5 years.
Of course, in larger hospital systems, the figure can be much higher. ProMedica, a health system based in Toledo, Ohio, was one extreme example. Executives stated in their financial statements for the first half of 2019, that their massive $1.9 million operating loss was “primarily driven by significant expenses incurred as a result of the Epic electronic health record launch.” In the first six months of 2019, the estimated financial impact of the Epic launch for ProMedica’s twelve hospitals was $19 million.
How to Reduce EHR Implementation Costs
1. Before you go shopping, determine your must-haves and a reasonable budget.
Costs in the healthcare technology space vary so widely that it’s critical to know what you need, what you want, what you can live without, and what you can afford before you start listening to sales pitches. Speak with colleagues for vendor recommendations, inquire with your medical billing service about which tools integrate with their system, and conduct extensive research before contacting vendors.
2. Think about a cloud-based solution.
EHRs that are hardware-bound are almost always more expensive than systems that are software-as-a-service (SaaS) or “cloud” powered. Cloud computing also eliminates the need for costly in-house servers, and most solutions can integrate with the laptops, desktop computers, and mobile devices that your practice already has – no office-wide technology upgrades are required.
3. Keep an eye out for hidden fees.
Many “free” EHR systems on the market have significant drawbacks – ads, slow load times, limited functionality, and more – and should be avoided at all costs. As you go through the vendor selection process, make sure to ask each prospective EHR company what they charge and when they charge it; many vendors charge extra for training, support, licensing, and other things.
4. Consider the long term.
What’s more expensive than putting your first EHR in place? You’re putting in your second EHR because you were so dissatisfied with the first (more on that in a moment). Don’t let your frugality rule your decisions. Make sure the system you choose will meet your needs, integrate well with your medical billing process, and help you improve overall office efficiency in the long run.
Contact our team today to learn more about how our billing and coding services can help you realize the full potential of your EHR system and get started on improving your revenue cycle management.
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