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Financing Your EHR System - Dec 7. 2010
This webinar discussed financing options for electronic health record (EHR) adoption. It began with introductions of the panelists and their experience in healthcare and EHRs. The webinar then covered considering the full range of EHR costs, different licensing models, payment structures with EHR vendors, and low-cost financing from banks. Additional funding sources discussed included grants, incentives from CMS, and services from regional extension centers. Tax incentives and malpractice premium relief for EHR users were also reviewed. The webinar concluded with a discussion of the long-term benefits and cost savings of EHR use based on studies.
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Financing Your EHR System - Dec 7. 2010
- 1. WebinarHow To FinanceYour EHRModeratorMichael Barr MD, MBAPanelists Trenor Williams, MDGreg FullerRichard Katon, MD, MPH
- 2. IntroductionsDr Trenor WilliamsMedical Director, eHealthDCFounder of ClinovationsHe has over 15 years of experience in healthcareAnd has been a leader in healthcare consulting for the 6 yearsPrior to eHealth DC, medical director of Family Practice at Mammoth Hospital in California and was a Lieutenant Commander in the United States Naval ReserveGreg FullerProgram Manager, eHealthDCExtensive experience in health ITResponsible for leading eHealthDC, the District of Columbia Regional Extension Center
- 3. EHR FinancingAmericanEHR PartnersWebinarTrenor Williams, MDGreg Fuller12/07/2010
- 4. Presentation ObjectivesAdopting electronichealth records (EHRs) can be costlyCosts include more than just EHR softwareSome prices bundled with EHR costs, others extraLicensure types and creditor will impact cost and payment termsFinding the required funds can be challenging, especially for small, rural, and independent practicesMany, traditional and creative financing options and funding sources exist to helpThis presentation will help you understand financial needs, licensing terms, sources for funding and support, and financial benefits of EHR adoption.
- 5. Consider Full Rangeof Costs In Your BudgetSoftware
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- 12. Productivity loss duringimplementation
- 13. Tech support, bothinitial and long-term
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- 19. Fax machines andservers
- 20. Document scanners andservers
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- 24. ServersChoose the Typeof Product Licensing That Meets Your NeedsModels are representative examples of payment options for a five-physician practice. Individual vendors vary considerably. These are approximate costs rather than specific examples.Interface costs for lab and practice management systems only.Minimum five-year contract required.Adapted from California HealthCare Foundation. “Physician Practices: Are ASPs Right for You.” October 2006.
- 25. Decide How toStructure Payments with the EHR Vendor
Editor's Notes
- #11 With vendor-financed offerings you may have less leverage in negotiating contract termsRegional Extension Centers can help you:Get better than standard contractual termsObtain necessary warranties and representations from vendors that systems will comply with future meaningful use requirements (e.g., reports)
- #12 If a practice finances or leases the EHR, they can take the entire deduction this year, while only paying out a small portion. So Section 179 can literally result in net positive dollars deposited in a company’s bank account - giving a substantial boost to a the practice’s bottom line in the initial year
- #19 Study concluded that EHRs help to avert costs and increase revenue leading to significant savings for the healthcare practice in: Drug expenditures (34%) Improved utilization of radiology tests (14%) Better capture of charges (2%) Decreased billing errors (78%)
- #22 About 6 years ago 2003/2004, we had a 5 MD practice with 3 PAs and knew that eventually EMRs would part of the standard of care. We also had 2 locations and noticed how difficult it was to keep all of the information on paper – both locations had different patient populations and patients would rotate between them so patients would rotate between locations and we’d have to transfer the charts or fax copies of the latest record. It became cumbersome – charts were being lostknew that we were going to possibly add a 3rd location and knew it wasn’t going to be possible if they were on paper.Would get a call on Saturday night about lab test – e.g. blood sugar of 400 – and it was very difficult to know if you should go into the office and search for the chart – was it a patient that was fully controlled.
- #23 Evaluated Financing vs. LeasingHow did you find the bank? Went with the bank with whom they’ve been doing their banking with and had some rapport and relationship. Didn’t really shop it – shopping they did was between their bank and the leasing really. It was going to be a hassle to prove their credit worthiness to another bank. It was a small community bank at the time. The ROI data that they could show them was from the EMR company – there’s better data.Process/Difficulty in getting practice partners sign on with personal credit There were 5 partners in the practices, who all wanted to do it – so everyone agreed on signing with their own personal credit – we were all invested in the practice so adding more risk wasn’t that worrisome. 5 partners – maybe it was a good size. Financed both the hardware and the software.