A Real Case for the Return on Investment of EHR Implementation

If there is one thing that there is no shortage of during the EHR implementation transition, it is cynicism. Much of this negativity is certainly warranted when providers are running into legitimate budgetary and staffing problems, but an even larger portion of the medical community seems to view speaking skeptically as a personal hobby. Perhaps this devout skepticism comes from a fear of change, but even more likely is that they think that the evidence for EHR ROI (return on investment) simply is not there.

Well, we have news for them: EHR ROI is real, and it is not isolated to just a few anomalies. There have been multiple studies confirming that some provider organizations benefited greatly from EHR implementation.

While we must acknowledge the real struggles providers are facing, we must also recognize collectively as a community that negative EHR implementation outcomes are not inevitable. To stir in this dose of much-needed positivity, here are a few examples of providers that genuinely saw EHR ROI within a reasonable time frame:

Reliant Medical Group

Hailing from Worcester, Mass. but with facilities throughout Central Mass., Reliant Medical Group was an early adopter of EHR Software Systems. After shelling out an astounding $24 million in overall costs, the organization says that it is already seeing tangible financial and administrative benefits.

Foremost, the more precise coding and documentation capabilities of EHR are credited with increasing their Medicare Advantage reimbursements by $2 million annually. They also saw a huge surge in their compliance rate for Medicare Advantage patients who had chronic kidney disease diagnoses. Within a three-year period, compliance for these patients increased from 20 percent to a whopping 80 percent.

Additionally, the time and cost of transcribing dictation has fallen significantly for Reliant’s centers — a full 63 percent, to be exact.

Reliant’s Larry Garber even touted that EHRs successfully made good on their promise to reduce medical mistakes. Looking specifically at his radiology departments, there was a consistent problem with the wrong tests being ordered. After customizing a one-click feature that would reveal the specifics of every test ordered, radiologists could vet the pending test requests and confirm or correct them before they were scheduled.

In total, the percentage of radiology tests requiring expensive ordering changes post-scheduling declined from 12 percent to four percent. This reduction saved both patients and providers resources, especially the radiologists who had more time to perform tests that were genuinely needed.

Small Practice EHR Wins

While not every provider has the budget to lay down a cool $24 mil on the table for EHR, many smaller pilot clinics were still able to budget for their EHR implementation properly and see some EHR ROI within a few years.

Here are some five-year case studies courtesy of Providers Edge:

●       OB/GYN of West Michigan saw a 65 percent return on investment after cutting six full-time-equivalent staff positions in transcription and nursing as a result of increased efficiency.

●       Nash OB-GYN Associates, hailing from Rocky Mount, North Carolina, saw a huge 71 percent reduction in both transcription and supplies costs.

●       Lakewood Family Medicine of Holland, Michigan enjoyed a 50 percent EHR ROI, with savings of $100,000 per year on reduced transcription costs alone. Administrator Beth Zandra even fully-endorsed the decision, saying that, “There’s no way my physicians would go back to paper medical records.”

●       One Dr. Jack Dekkinga had an unusually-glowing case for EHR ROI. While his costs for transcriptions and supplies fell just like the other study participants, his receipts also grew by 32 percent coupled with an 18 percent increase in total patient encounters. His small practice was able to achieve an astounding 240 percent ROI, allowing him to pay for the costs of his EHR system in just over five months.

Getting Realistic About EHR ROI

Not every provider organization will see the storybook gains described above, but they will also likely not endure the catastrophic losses bandied about by devout naysayers. The real point is to illustrate that losses are not inevitable.

In fact, one of the most comprehensive studies on the subject of EHR implementation found that small practices would recoup their losses after two and a half years, on average. After that, they could expect incremental gains in the years to come. While this timeline may seem drawn out for some, providers must come to grips that the expectations of EHR implementation are coupled to the promise of better efficiency and better patient care. Tangible, cash results thus may pale in comparison to the revitalized landscape that EHR promises in the long run.

If such idealism is not enough to float your boat, at least take comfort in the fact that significant Medicaid incentives can be had if you implement EHR sometime next year. Between incentive programs like these and the potential gains evangelized by those above, now is the time to create a serious EHR implementation strategy and adjust to what will inevitably color the future of modern medicine.

Must Read about: 4 Practical Ways EHRs Use Real Time Analysis to Help Providers and Patients

Does an iPad EHR actually save time?

The implementation of Electronic Health Records in the US was a golden step forward in the healthcare industry. Doctors, nurses, and other healthcare providers were able to document their data more effectively and consequently reduce the number of errors made in patient charts and claims. According to a survey conducted by the National Center for Health Statistics in 2011, nearly 55% of physicians had adopted EHR systems for their practices. Almost 74% of the physicians surveyed admitted that EHRs had improved the efficiency of their medical practices.

However, ever since the CMS brought forward its regulations regarding detailed documentation and penalties for documentation and billing errors, entering patient data on a desktop screen became a huge hassle. Many physicians and nurses now spend more time on patient documentation than on the patient himself. Another problem faced by healthcare providers is that they have to record patient data and situations from time to time, and on paper because let’s admit it; they can’t carry a desktop computer with them everywhere. Hence a lot of precious patient time is consumed on double documentation; first on paper and then on the desktop EHR.

EHR vendors and healthIT experts came up with an alternative solution for these problems; simply integrate EHRs with other portable technology gadgets. The most selling EHR among these portable devices is the iPad EHR, because it both easy to use and does not require physicians to stay seated on their desks to document patient data. Here are some interesting features of iPad EHRs that Help Reduce the Documentation Time:
1. Charting on the go
Unlike computers, iPad’s don’t confine physicians to their desks in order to record patient data. Nor are nurses required to carry around heavy paper files and records to document the patient’s vitals and other treatment conditions. Physicians and clinical staff can now enter and store patient information on their iPads; and all while looking at the patient.

2. Simplified documentationDocumentation had always been a time consuming task for providers. The iPad EHR is a more simplified version of desktop EHR. According to a survey, documentation and charting time reductions of 23% were reported by physicians who had shifted to the iPad EHR.

3. Lab Ordering and Prescribing
Another recent advanced feature available in some iPad EHRs is the ease of Lab ordering and medicine prescribing. Physicians can now select a pharmacy or lab in their desired location and send lab orders or prescriptions without leaving their offices. They can also receive lab results on their iPad, which are then shared with the patient.


The iPad EHR has become the new trend that is Reshaping Medical Practice Workflows in the healthIT industry. Kelly Rakowski, managing director health provider practice at Accenture, stated that she has seen physicians enhance productivity by using iPad EHRs because of the ease with which they facilitate information sharing. The results of another survey of iPad EHR users concluded that iPad EHRs increase operational efficiency of medical practices by 30% and improve quality of care by 16%. These analytics prove that iPad EHRs are the perfect alternative solution for modern medical practices that are facing productivity loss because of reduced patient care time.

read more about: Top Rated iPad EHR – MU Certified iPad EHR                                    

Does a medical billing software actually enhance efficiency?

Gone are the days when providers used paper for almost everything, be it prescribing medicine, making notes, mentioning patient symptoms, and billing the patients. With EHR technology becoming more and more popular among providers in the US, a lot of vendors have started integrating Practice Management Software to expedite medical billing in their practices.

Although providers have found EHRs to be very useful for their practices; some of them are still hesitant towards using medical billing software. The reason could be that several medical billing tools are quite complex and costly for practices to handle. Some practices still prefer manual documentation over electronic, in order to protect data from being hacked, stolen or even used for corrupt purposes. After all, the chances of data being accessed by unauthorized individuals are higher in electronic data as compared to paper based data.

However providers must realize that medical billing software are bringing about a new change in the healthcare industry. Now the rate of claims being denied or delayed are decreasing significantly. According to Reviews, electronic medical billing has successfully reduced error per claim ratio with latest technology like Claim Scrubber. Here are some common features of medical billing software that can contribute a lot to increasing practice efficiency:

1.       Access to Patient information

Medical billing software has enabled physicians to run background checks on patients’ medical and insurance history. Now it’s easier to access patient information from anywhere. Not only does this speed up the billing process but also helps practices avoid claim errors.

2.       Reducing claim denials

The biggest problem troubling medical practices is the increase in their claim denial rates. While dealing with several claims directed towards different insurances at a time, mistakes are inevitable. However, with recent upgrades brought by medical billing technology, it has become easier to identify such errors and correct them before sending out the claims. This way more than 90% claims pass through submission in the first go.

3.       Increase in cash flow

Another change observed in practices that have adapted to electronic medical billing is the increase in their cashflows. Medical billing software not only increases the rate of claim submissions, but also helps providers reclaim their fee early by reducing payment time. Some medical billing software even have the capability to auto-generate modifications through which providers can follow up on their claims via regular reports and tracking.

For small practices that have not yet adapted to electronic medical billing because of the pricey and complex software, Outsourcing Medical Billing to a medical billing company is another appropriate solution for improving practice performance.

Rad more: Top reasons to Outsource Medical Billing

Does an Oncology EHR help optimize physician workflows?

Oncology has a unique set of terms and protocols as compared to other medical specialties. The intensive data and procedures involved in oncology list it among the most complex medical specialties. Therefore it is reasonable to understand why oncologists dislike using a generic EHR that doesn’t suit their practice. EHR vendors have tried coming up with an Electronic Health Record (EHR) system that can cater to oncology practices, but many have failed in doing so. However few have succeeded in either modifying their generic EHR to accommodate to specific oncology requirements or redesigning an EHR solely for oncology practices.

Oncologists expressed the urgent need for EHRs that could help them with more accurate documentation and safe-keeping of patient data, ordering and administration of chemotherapy drugs, clinical trials etc. The most useful features in an Oncology EHR that can drive outcomes, productivity and financial growth, are as follows:

1.       Chemotherapy automation:

 An Oncology-specific EHR simplifies chemotherapy automation for oncologists. Orders can now be delivered electronically and oncologists no longer need to manually calculate the amount of dosage to give to their patients. The automated dosing and scheduling function in these EHRs helps prevent dosage calculation errors.

2.       Customized templates and digital imaging

The availability of customized templates for various tumor-stages assist oncologists in the creation of structured notes. Many EHRs also have the feature to capture, scan and attach clinical images, lab tests and photographs directly into the patient chart, or through an integrated PACS. Additionally, these notes and images can be emailed or faxed to the referring physicians.

3.       Patient portal:

Patients need to be updated about changes in their condition from time to time. The patient portal facilitates patients in receiving test results as soon as they become available, and it also helps in keeping tabs on their health status. Moreover, some EHRs help patients in requesting appointments and refills online.

The Oncology EHR assists oncologists in improving their practice workflows by offering features including cancer mapping and stage identification, treatment recommendations, clinical trial support etc. However it is necessary for oncologists to recognize which EHR will be suitable to meet the needs of their specialty or subspecialty before purchasing any.

Read more: We did it again! CureMD ranks 3rd in the Top 20 most Popular EHRs.