Benefits of EHR Systems Return on Investment Ali Modaressi Director, EHR Technology November 3, 2011
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1 Benefits of EHR Systems Return on Investment Ali Modaressi Director, EHR Technology November 3,
2 Benefits of EHR Systems No pulling charts No lost charts Less time filing 2
3 Benefits of EHR Systems Universal chart access Easier compliance with chart requests Improve external communication 3
4 Benefits of EHR Systems Improved intra office communication Fewer call backs from pharmacies Higher quality documentation 4
5 Benefits of EHR Systems More efficient chart signing Built in health maintenance protocols and reminders Improved medication management 5
6 Benefits of EHR Systems Improve customer service Free up space 6
7 Return on Investment Financial improvement compared to cost of new technology Reducing costs and increasing revenue Ideally for every $1 you spend on technology you receive greater than $2 on bottom line 7
8 Calculating Your Potential ROI What you need: Basic clinic visit data, revenue, and expenses Billable services and service codes Operating expenses: copier/fax, paper, toner, chart paper, transcription, postage, and other related costs Staffing hours and cost 8
9 Case Study Primary Care Practice 1 provider, 3 full time and 1 part time employees 25 patients a day; 7 new patients a week In house billing Outside transcription service Two PCs, printer, fax, and copier Labor rate of $12 $25/hr; benefit 25% of salary 9
10 ROI Paper Chart Maintenance Chart creation costs: $1,750 annually Chart pull and re file costs: $30,000 annually 10
11 ROI Handling Faxes Paper fax cost Fax and printer supplies toner and paper Handling incoming and outbound faxes: $30,750 annually 11
12 ROI Transcription Costs EHR application cuts transcription costs Transcription costs $12K $25K annually 12
13 ROI E&M Coding EHR helps improving E&M coding and thus increases average charges for office visits Improved coding $25K annually 13
14 ROI Insurance Claims Due to better charting, number of claim denials reduces by 10% 25% EHR reduces the amount of days insurance claims spend in accounts receivable, increasing actual revenue 14
15 ROI Eliminating No Shows Electronically calling each patient to remind them of their appointment decreases no shows by over 50% Reducing no shows increases number of daily visits by 5 8% 15
16 Cost of Managing Paper Charts Line Items for Managing Paper Charts Average Cost Paper Chart Supplies $ 1,750 Pulling and Re filing Charts Labor $30,000 Inbound/Outbound Faxes Labor& Supplies $30,750 Transcriptions $12,000 Money Lost in Down Coding $25,000 Total Annual $99,500 Monthly $8,300 16
17 EHR Cost Factors HITEC LA recommends hosted/cloud EHR system Low upfront cost Minimizes HIPAA and IT compliancy issues No backup/recovery issues Data redundancy Hardware requirements: Hardware (4 PCs, 1 laptop, 2 printers, 1 scanner) Network (router, firewall, wireless, etc.) Internet line (business DSL or T1) 17
18 EHR Cost Spectrum EHR Cost: $60 $700 per month per physician Internet Line: $50 $500 per month Training: $0 $10,000 per provider Hardware and Network: $8,000 $12,000 18
19 Cost of Adopting and Maintaining EHR Line Items Monthly Estimate EHR Application (monthly) $ 700 Internet (monthly) $ 200 Training ($10,000 over 5 years) $ 250 Hardware ($12,000 over 5 years) $ 300 Monthly Salary and Benefits 2 Staff $ 5,200 Monthly Total $6,650 19
20 Cost Benefit Analysis Paper Chart $8,300/month EHR $6,650/month 20
21 Benefits to Physicians Clinical integration Reducing operation costs >8% Improve revenue capture >3% Minimize lost charges Pay for performance Interface to labs, hospitals, pharmacies, IPA(s) Providing added services and value Increase patient volume (5 15%) 21
22 Conclusion EHR is finally becoming cost justified Financial savings and revenue increase Does not reduce patientdoctor face time Saves time in documentation after visit Improves quality of care Malpractice rate can decrease with EHR 22
23 We re here to help Call Visit (888) hitec 23
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