Globotron Blog

 The following is 11 reasons to implement an EMR:

1.      The greatest savings is in labor costs. It is estimated that over 70 percent of the costs associated with pulling and re-filing charts can be eliminated resulting in head count reductions. Determine the number of charts pulled and re-filed in a week. A typical week for most doctors is 375 charts per doctor. If it takes on average 5 minutes to file a chart and 3 minutes to re-file the chart, then your staff is spending 50 hours per week to pull and re-file charts. If you are paying your staff $15 per hour, this translates into a yearly cost of $39,000 per physician. The yearly recurring cost of $117,000 adds up quickly for a 3 physician office.

2.      Paper storage costs add huge savings. A typical space used to store the paper records is on average 500ft². The average cost for space in NYC of $65 ft² leads to savings of $32,500 per year.

3.      Transcription costs can either be eliminated or drastically reduced in a well designed template system. This can translate into $36,000 in savings per year per physician.

4.      Malpractice premium costs may go down as the improved documentation leads to better patient care. New government initiatives, grants and tax incentives are also planed to encourage the deployment of EMR solutions.

5.      Storing records electronically also eliminates the need to print expensive microfilm.

6.      Increased productivity also allows for the addition of providers without additional staff.

7.      EMR can help you achieve maximum reimbursement by guiding you through the coding process and ensures you have documented each encounter properly.

8.      EMR records also help protect you in the event of an audit.

9.      EMR can help provide discounts in malpractice insurance premiums. Improved documentation, accountability and tracking helps in reducing medical errors which can result in lower premiums.

10.  Medical Liability Monitor conducted a survey in 2005 that indicated that the four-state average of the highest liability rates for OB/GYN was $230,919. Malpractice insurance companies provided a 2-5% EMR credit which translates into a savings of $4,600 to $11,500 per provider per year.

11.  Stark and anti-kickback laws provide subsidies for hospitals and regional healthcare providers if they purchase an EMR with the following criteria: Data from the EMR can be communicated to other EMR systems, E-prescribing capabilities and interoperate with other provider systems. The state of New York contributed $52.9 million in funding in 2006 to create community RHIOs and increase use of interoperable EMRs. The state handed out $105 million in 2008 to 96 hospitals in order to create a statewide EMR system.

More savings can be realized in the investment of a more complex EMR solution but at a much greater cost and risk.

Keep in mind that the national average for a successful EMR implementation is 40% meaning that 60% of EMR projects fail! You cannot simply select a vendor and write a check and expect the process to work its way out. The role I usually take is project manager between the practice and vendor keeping everyone on schedule. This role requires strong project planning skills, detailed workflow analysis of the practice, technology, process and people skills.

Conclusion
EMRs can pay for themselves in a short period of time through significant cost savings and increased revenues for your practice. The initial investment can be as little as $10,000 for a simple EMR solution taking a few days to implement to a full blown EMR solution costing $150,000 and taking 16 months to fully implement. The cost savings are very real. Your bottom line will decrease during implementation but should drastically increase as the system is brought on line and the staff begins to work more efficiently. You can always contact us and we will be happy to give you a free consultation and or point you in the right direction!