EMR Financial Benefit #1
Increased productivity
Organizations see improved productivity as a result of the many processes that become automated through the use of EMR technology. Tasks like pulling/filing paper charts become replaced by simply clicking a patients name in the EMR system. End-of-day reporting becomes much easier as reports can be generated directly from the EMR system. Lab and imaging results can be placed directly into the EMR, thereby making it easier for users to access. Integration with diagnostic devices enables users to input results/findings directly into the EMR, eliminating the need to manage the many types of forms used in today’s offices. Though it is clear that EMR can make our offices more productive; what we do with this new time doesn’t necessarily translate into financial benefit.
EMR Financial Benefit #2
Increased revenue
EMR can increase your revenue by providing physicians with better coding recommendations and providing physicians with the ability to offer new services to patients. E/M level coding assistance can be an incredible financial benefit, especially in family practice, pediatric and internal medicine practices. In fact, a recent study by Medical Economics Magazine stated that a physician not coding to the maximum E/M levels may be losing $40,000 to $50,000 annually3. Many EMR vendors offer features for patients to view their medical information, schedule/cancel appointments, and complete forms ahead of time via the organization’s website. This can help attract new business and reduce the load on your staff. EMR also enables offices to reduce their physical storage space by drastically reducing the amount of paper used for each patient. This can translate into having more office space available for treatment, possibly providing room for an additional associate. Improved insurance re-imbursement as a result of better coding and billing procedures can also increase your revenue. Being in closer touch with patient’s treatment plans and filing documentation at the right time can help maximize reimbursement. This helps the physician run the practice more like a business.
EMR Financial Benefit #3
Avoidance of costs
EMR can help you reduce the many expenses such as paper charts, poor documentation and high malpractice premiums, but can also create new expenses as a result of support contracts, computer maintenance and product updates. Reducing paper chart costs including purchasing stationary (folders, paper, tabs), copying, management (pulling/filing) and storage (office space, cabinets) is the one of the most obvious benefits of EMR. Transcription costs can also be reduced as EMR can provide you with an easier means for patient documentation and report writing. This can be a big savings as many offices spend as much as $1500 per month per provider. When an office becomes busier, they can avoid the cost of hiring new staff by becoming more efficient with the EMR system. EMR systems can help offices reduce to an even 1 to 1 ratio of assistant to provider. Offices can avoid expensive medications by offering patients more cost effective alternatives. They can help keep malpractice premiums lower as a result of higher quality documentation and drug prescription alerts. A long-term implementation plan and commitment to eliminate paper charts is crucial if cost avoidance benefits are to be realized.
EMR Financial Benefit #4
Increased profit
In order to increase profit one needs to take into account all these possible benefits and compare them to the new costs that will be incurred as a result of an EMR implementation. Many benefits however, are difficult to quantify such as, improved care, patient satisfaction, and office image. These all contribute to higher profits as a result of increased patient referrals and better patient retention.
NEXT: Clinical Benefits of Electronic Medical Records
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