Today, Electronic Health Records (EHRs) are becoming an increasingly popular option in healthcare facilities. Compared to paper records, these systems are more systematic and organized. With the help of these systems, it is possible to accomplish operational efficiencies, higher quality care, and higher profits. However, the cost of adopting Electronic Health Records software is comparatively high. This has proved to be a significant barrier to adoption. This blog evaluates the various costs involved in setting up an EHR system.
Types of EHR
There are primarily two types of EHR systems today. These are 1. traditional on-premises EHRs and 2. Cloud EHRs. A traditional EHR is hosted on your server and needs one compatible with the EHR solution. Alternatively, a cloud EHR stores data on the vendor's server.
Cost Breakdown for On-premises EHRs
A Health Affairs study from the early days of EHR adoption pointed out that a multi-physician practice would spend roughly $162,000 to implement an EHR. Also, they would pay around $85,000 towards first-year maintenance costs. This is a slightly dated estimation. Nevertheless, it gives us a rough idea of the expenditure involved in such projects. For such EHRs, the various cost components are as below:
• Infrastructure Costs
For this category of EHRs, costs are incurred towards procuring the necessary hardware. Such hardware includes servers and workstations, and networking equipment. It also includes devices such as laptops, tablets, and servers. These are included as infrastructure costs. Additionally, there may be expenses associated with data centers, security measures, and backup systems to ensure that patient information is reliably protected. These costs are high but are essential for the appropriate implementation and performance of the EHR software. Also, network and connectivity costs must be considered.
Healthcare organizations must invest in network equipment such as routers, switches, and firewalls to protect sensitive patient information. It is also necessary to invest in ongoing maintenance and upgrades to keep up with ongoing demands for connectivity. However, these costs may be significant but essential since they enable EHR implementation securely and efficiently.
• Training and Support Cost
Training and support costs are part of the indirect costs involved while you get accustomed to the EHR. During this period, however, productivity might drop temporarily. According to a Definitive Healthcare and Vocera study, around 77% of nurses, physicians, and other medical professionals feel stressed due to innovations brought forward by technology.
These technological innovations include EHR documentation, retrieving EHR data, and other modernizations. The training costs must be included in the overall budget for EHR implementation because insufficient training would render the entire exercise less effective.
• Software Development Costs:
As you may know, software development for a reliable EHR solution is complex. This is not only time-consuming but an expensive process too. Also, developing a functional EHR takes great expertise and effort. It takes a team of specialists to build the full software for a custom solution. You may want to outsource this development exercise to cut costs further.
• Technology Costs
This is one of the biggest hurdles in the implementation of EHR, as it can hurt workflow and documentation. However, since change is inevitable, this challenge must be addressed immediately.
• System Downtime Expenses
As with other software systems, EHRs could also face system downtime issues because of regular maintenance issues or to allow for newer upgrades. So, users could incur indirect costs if downtime happens unplanned. Such unplanned events could lead to unfavorable consequences.
Cost Breakdown for Cloud-Based EHRs:
These EHRs utilize a cloud-based service model. This means your data is stored on the vendor's server. The vendor handles the hosting and other aspects. So you do not need to pay for extra servers and storage. Since the EHR service is managed through the Internet, you must pay only a service fee periodically. Hence, you need only to pay on a monthly or an annual basis. Compared to traditional EHRs, these EHRs are more affordable. Also, they are easier to install and maintain. Moreover, these systems are more attractive to smaller and independent practices. Hiring IT and system maintenance professionals for EHR maintenance and upkeep could be more expensive.
So, Which EHR to Choose?
In today's fast-paced world, it may make sense for a small practice to go for a cloud EHR. Since this EHR can be accessed from anywhere via extra servers, you need a computer with an internet connection to connect. On the contrary, the traditional EHR requires an in-house server, software, hardware, and data storage, which must be installed at the health practitioner's location. Finally, comparing the costs, such an EHR system software allows for more significant savings. Some cloud EHR vendors allow users to pay as low as $100 monthly for subscription fees. Smaller, cost-conscious hospitals may no longer need to invest significantly in in-house EHR systems.
Conclusion:
It isn't easy to obtain an accurate estimate for EHR implementation as it depends upon several factors, including the specific features and requirements you need for your practice. However, with careful planning and consideration, you can effectively implement an EHR solution for your needs and obtain favorable long-term results and benefits. Discover how embracing OmniMD's EHR can lead to substantial cost savings while enhancing your healthcare practice's overall efficiency. Contact us to learn more!
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