EMR: Return on Investment

Return on Investment ROI = Gain from Investment - Cost of the Investment Cost of the Investment

Return on Investment ROI 50% = $75,000 - $50, $ 50,000

Gains from an EMR Time Savings for Physicians and Staff Improvements in Coding Reduction or Elimination of Transcription Costs Eliminate Paper Charts and Associated Costs Reduction of other Cost. Patient Safety & Satisfaction

Time Savings for Physicians & Staff Reduction in documenting the chart - Average Time Savings is 5 mintues. - Done in Real-Time. - Point of Encounter. - No Need for longer appointments

Time Savings for Physicians & Staff Avg Time Saved Documenting a Visit5 Minutes Avg Patient Appointments a Day25 Total Minutes Saved per Day(25 visits x 5 Minutes)125 Min. (2 hrs) Additional Patient visits per day6.5 Total Days worked in 12 month period(5 days/wk x 48 wks)240 Additional Patient Visits per year(6.5 visits x 240 days)$ 1,560 Total ROI per Physician per Year(1,560 x $50)$78,000

Time Savings for Physicians & Staff Stop Chasing Paper - No more pulling charts days ahead. - No stacks of charts stranded on desk. - No need to re-file charts.

Time Savings for Physicians & Staff Time Saved handling paper(est 30 mins/day)30 Minutes Additional Patient visits per day1 Total Days worked in 12 month period(5 days/wk x 48 wks)240 Additional Patient Visits per year(1 visits x 240 days) 240 Total ROI per Physician per Year(240 x $50)$12,000

More Time Savings for Physicians & Staff Reduced time on Patient intake information. Reduction in Pharmacy call-backs with Electronic prescription.

Improvements in Coding Under coding due to fear of audit. Under coding due to lack of time to sufficiently document the level of care. $40,000 - $50,000 annual loss per physician $9 Increase in Average reimbursement per visit.

Average Physician Appointments per day25 Total Days worked in 12 month period(5 days/wk x 48 wks)240 Patient Visits per year(25 visits x 240 days) 6,000 Total ROI per Physician per Year(6,000 x $9)$54,000 Improvements in Coding

Reduce or Eliminate Transcription Costs Real-Time documentation eliminates Transcription costs. Eliminates the delay in the documentation making it to the chart. Average Physicians spend $15,000 a year on transcription.

Eliminate Paper Charts and Costs Average maintenance cost is $8 per record per year. Average Maintenance cost is $1-$2 per year for Electronic Record. 3,000 Active charts per Physician. Reduction in Real-Estate expense.

Estimated maintenance of Paper Charts($8 / chart / year)$8 Estimated maintenance of EMR chart( $1-$2 / chart / year)$2 Annual Savings per chart($8 - $2) $6 Assumed active charts per physician3,000 Total ROI per Physician per Year(3,000 x $6)$18,000 Eliminate Paper Charts and Costs

Reduction of Other Costs Eliminate Charge Entry with Automatic Charge Capture. Automate the process of generating and receiving referrals. Malpractice Insurance carriers frequently give discounts to user of an EMR system.

Patient Saftey and Satisfaction Eliminate adverse drug-to-drug and drug to allergy events Prescribe medications on the patient’s approved formulary list the first time. Have prescriptions waiting for patients at the pharmacy. Patient control with Web Portal and personal health record.

ROI from Electronic Medical Records ROI from Time Savings$ 78,000 ROI from Time Savings - Handling Charts$ 12,000 ROI from Electronic vs Paper Charts$ 18,000 ROI from Transcription Costs$ 6,000 ROI from Coding Improvements$ 54,000 ROI from Charge Capture$ 5,000 Total ROI per Physician per Year$175,000

ROI from Electronic Medical Records First Year “Hard” Costs$ 30,000 First year “Soft” Costs$ 30,000 Annual Network/Software Maintenance$ 10,000 Annual Training for New Staff$ 5,000 Annual Hardware Depreciation$ 5,000 BEST CASE ROI/Physician 1 st Year$178,000 - $60,000$ 118,000 BEST CASE ROI/Physician 2 nd Year+$ 178,000 - $ 20,000$ 158,000 Typical ROI Expected 2 nd Year+%50 of $158,000$79,250