The price of implementing a new EHR has changed over the last decade. Since the Barack Obama administration signed the ARRA and HITECH acts into law, EHR implementation costs have changed for small practices and large provider networks.
A Health Affairs survey revealed that the cost of implementing an EHR for a 5-physician practice was a little more than $162,047 within the first two months after launch. Results from a group of surveys put the price of implementing an EHR at 15,000 to 70,000 per care provider.
Today, the price of implementing an EHR for a similar practice may be higher since many more features are added to most EHR installations. However, the cloud-based implementations now allow providers to discount the costs over a more extended period and pay in smaller installments.
If you plan to implement a new EHR in your organization, focusing on these cost categories will help you arrive at a fair estimate.
1. Hardware Costs
Your practice may need to acquire new servers, workstations, and networking equipment for the new EHR. If you choose to purchase an on-premise EHR, you need secured servers to host the application and database.
Even if you opt for a SaaS system or cloud-based deployment, you still need to choose a hardware platform and pay subscription fees. Deploying your EHR in-house requires higher initial capital than using the software vendor’s servers or your private cloud service.
While estimating your hardware costs, you need to consider the following:
- Desktops, laptops, tablets, and smartphones
- Wireless networking equipment
- Automatic document feed scanners
- Barcode readers
- Smart card scanners
- Printers
- Signature pads
2. Software Costs
Most EHR software comes with core modules and a long list of customization options. Some of these options were provided to meet the needs of various practice types, while others were added to improve interoperability.
The main modules include:
- Document management
- E-prescribing
- Appointment scheduling and time management
- Electronic communication and messaging
- Integrations
With the high demand for interoperable data solutions in healthcare, in-house EHR installations may not save your practice money in the long term anymore. For a new EHR, a cloud-hosted solution may be the most cost-effective solution. Data posted by the ONC shows that implementing a SaaS-based EHR is about $26,000, while implementing an in-house hosted EHR costs $33,000.
3. Support Costs
For the successful implementation of a new EHR system, you will need the help of project managers, analysts, developers, consultants, and trainers. Working with consultants can enhance the quality of:
- Project planning
- Workflow redesign
- EHR customization
- Training
When you partner with an expert, you can save time and money and quickly get the system up and running.
4. Training Costs
Training is a vital aspect of your EHR implementation. When it is well organized, training boosts clinician satisfaction with your EHR and reduces burnout.
For effective implementation, you should have a budget for two types of training:
- Training during implementation
- Training to support end-users of the system
You should budget between $1,500 and $2,000 for each physician. You’ll need a higher training budget for developers, analysts, and project managers.
5. Operational Costs
Operational costs are the costs you need to maintain, develop, and optimize the EHR system. You will also pay a monthly or annual subscription fee for a cloud-based installation. On the other hand, a self-hosted EHR system will incur maintenance, security costs. However, these costs are usually lower than the cloud-based systems.
Get a Custom Quote for the Price of Implementing an EHR
Lifepoint provides EHR implementation support and interoperability solutions for healthcare providers of all categories. Call us at 877.522.8378 today to book a free consultation session or visit our contact page to discuss your EHR implementation needs.
Frequently Asked Questions
1. What is the cost of EHR implementation in a hospital?
The cost of EHR implementation varies depending on several factors, including whether the practice uses a cloud-based system or an on-premise EHR. Generally, it can range from $15,000 to $70,000 per care provider. According to a Health Affairs survey, a 5-physician practice may spend over $162,047 within the first two months after launch.
2. How can big data analytics help reduce EHR implementation costs?
Big data analytics can help healthcare organizations discover ways to reduce costs and improve efficiency. By analyzing medical, operational, and financial data, business intelligence software can identify under-utilized services and profitable areas, allowing for strategic adjustments.
3. What are the hardware costs associated with EHR implementation?
Hardware costs for EHR implementation may include acquiring new servers, workstations, networking equipment, desktops, laptops, tablets, smartphones, wireless networking equipment, automatic document feed scanners, barcode readers, smart card scanners, printers, and signature pads.
4. What software modules are essential for EHR systems?
Essential software modules for EHR systems include document management, e-prescribing, appointment scheduling, time management, electronic communication, and messaging, as well as integrations to ensure interoperability.
5. How do support costs impact EHR implementation?
Support costs are crucial for the successful implementation of an EHR system. These costs cover project planning, workflow redesign, EHR customization, and training. Support from project managers, analysts, developers, consultants, and trainers can significantly enhance implementation quality.
6. Why is training important for EHR implementation?
Training is vital for ensuring clinician satisfaction and reducing burnout. It includes training during implementation and ongoing support for end-users. Budgeting between $1,500 and $2,000 per physician for training is recommended, with higher costs for developers, analysts, and project managers.
7. What are the operational costs of maintaining an EHR system?
Operational costs include maintenance, development, and optimization of the EHR system. For cloud-based installations, a monthly or annual subscription fee is required, while self-hosted EHR systems incur lower maintenance and security costs.
8. How can I get a custom quote for EHR implementation?
Lifepoint provides EHR implementation support and interoperability solutions for healthcare providers. Call us at 877.522.8378 to book a free consultation session or visit our contact page to discuss your EHR implementation needs.