1. Financial Analysis Of Electronic Health Records (EHR’s)
Areas Of Analysis:
Private Practice Andrew Peek
Government Eric Clark
Hospitals Chris Lewis
Health (HIE) Yves Antoine
DSS & EBM Kevin Phipps

2. Financial Analysis Private Practice
Benefits
Increased Efficiency
Reduced Administrative Costs
Increased Patient Volume
HITECH Act Of 2009 Incentives
Example Practice
Single Physician
Office Staff (4 Employees)
Average Patients 25 Per Day

3. Financial Analysis Private Practice
Benefits
HITECH Act Of 2009 Incentives
Increased Patient Volume
Decreased time with patient while still maintaining quality.
Decreased time because of not having to pull patient charts.
Year 1
$15,000
Year 2
$12,000
Year 3
$8,000
Year 4
$4,000
Year 5
$2,000

4. Financial Analysis Private Practice
Benefits
“We found a 79% reduction in chart pulls 6 months after implementation of the EHR and a 96% reduction at 2 years. Previous internal time and motion studies estimated the average cost to be $0.86 per pull. On an annualized basis, assuming 50 work weeks per year, this reduction in chart pulls translates to an annual savings of $246,934 at 2 years.”

5. Financial Analysis Private Practice
Benefits
Reduced Administrative Costs
Decrease the # of employees
Decrease # hours for employees
Costs
Initial Costs
Software
Training
Support
IT Staff

6. Financial Analysis Private Practice
Costs
Initial Costs
Workstations
Tablet PC’s
Server
Wireless Networking Equipment
Software
Praxis EMR $6,000
VistA Public Domain Software $Free

7. Financial Analysis Private Practice
Costs
Training
Praxis provides initial training for physicians and office managers.
IT Staff
System Administrator
Support
/Chat

8. Government Analysis Costs Benefits
U.S. Government accounts for about 27% of all spending on healthcare expenditures.
Medicare and Medicaid account largely for this large amount of spending.
An estimated $500 Million dollars will be saved in the first 5 years as a result of the reform.
U.S. healthcare is one of the most expensive in the world.
Benefits
U.S. Government has the most incentive to reform because of the large amount it will save.
An increase in the quality of healthcare will result from implementation of Electronic Medical Records (EMR’s).
With the help of Decision Support Systems (DSS) and Evidence Based Medicine (EBM) we should see a significant decrease in the 250,000 deaths that occur each year because of medical errors.

9. Government Analysis Benefits
Workflow efficiency will drastically increase allowing physicians to see more patients and potentially make more money.
Preventative medicine will provide healthier patients and will also reduce the amount of money the government spends on healthcare.
Online pharmacies and E-Prescribing will lower the number of drug interactions and provide easier monitoring of prescription abuse/fraud.
Although our Government cares about its citizens well-being, the primary cause for reform in healthcare is the amount of money that will be saved from doing so.

10. EHR’s In Hospitals Costs $5,000,000 - $100,000,000
The price greatly varies based on the size of the hospital being implemented.
System Costs
Induced Costs
Decrease in provider productivity during and after the implementation.
Hardware
Implement
Staff Conversion
Training
Software
Support

11. EHR’s In Hospitals Benefits
Pulling charts will no longer exist or be time consuming.
Should lower malpractice premiums.
Reduce unnecessary tests.
Eliminate duplicate procedures.
Reduction of staff.
Meeting requirements to get paid.
Stimulus money.
Reducing hospital infections.

12. Maybe…. EHR’s In Hospitals
Is It Worth It?
Maybe….
More research is needed to accurately understand the financial impacts of EHR’s in hospitals.

13. Health Information Exchange
Standardization
National interoperability
Reduced efforts spending on compatibility issues.
More efficient HIE systems.
Funding
State and Federal initiatives
Future financial stability
Benefits

14. Health Information Exchange
Benefits
Reduced medical errors
Decrease in duplicate tests
Reduction in effort to locate charts

15. Decision Support Systems (DSS) & Electronic Medical Records (EMR’s)
Benefits
Increase the quality of healthcare
Increase efficiency
Quicker visits
Lower costs
Reduce medical errors
Patient satisfaction
Criticism

16. Decision Support Systems (DSS) & Electronic Medical Records (EMR’s)
Costs
DSS costs
Example clinic – 12 provider family clinic
EMR’s - $20,000 - $60,000
Training - $1,000 - $10,000
Hardware - $50,000 - $200,000
Support/Maintenance – Varies
Total $ - $71,000 - $270,000

17. Since there are none, thanks everyone!!!
Questions???
Since there are none, thanks everyone!!!