Advantages of Electronic Records vs. Paper Records



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Paper Records 1. Electronic record systems costs can be amortized over time whereas paper records cost money to generate, maintain and store. Those costs are incurred daily. Many software vendors will amortize the lease cost of the software over the license period. 1

2. Electronic records reduce labor costs. An Example: Just Lee Convalescent Center Is a fictitious extended care facility. However, the data presented for Just Lee is real data. 2

Just Lee used a time clock and time cards as its Check-In/Check In/Check-Out system. 3

Just Lee s Check-In/Check In/Check-Out Rules Example: Shift starts at 6 AM to 2 PM Employee punches in at 5:45 AM, then their time starts 6 AM. Employee punches in at 6:08 AM, then their time starts 6 AM. 4

Employee punches in at 6:09 AM, then their time starts at 6:15 AM. Employee does not punch in until 6:45 AM, then their start time is 6:45 AM and they are considered tardy. Employee punches out at 2:08 PM, then they only get paid until 2 PM. 5

Employee punches out at 2:10 PM or later, that is considered overtime, and they will get paid time and half for 15 minutes. The time is calculated in 10 minute intervals. Note: Payroll/Benefit assistant pay ranges from $10 - $15.00 per hour. 6

Manual Check-In/Check In/Check-Out Labor Cost to Calculate bi-weekly hours worked. Assume employee is paid $12.50 per hour. 100 hourly employees. Time - takes employee 5.5 hours to process the time cards. Bi-Weekly Cost - $68.75 to tally hours worked. Yearly Cost - $1,787.50. 7

Just Lee tested an electronic Check-In/ Check-Out system. 8

Electronic Check-In/Check In/Check-Out Labor costs to calculate bi-weekly hours worked. Time takes two 2 nanoseconds (1 mouse click). Bi-Weekly Cost - less than $0.50 to tally hours worked. Yearly Cost - less than $13.00. 9

Paper Records Process Payroll Electronic Records Time 5.5 hours Cost $68.75 Total Time 11 hrs. Total Cost - $137.50 Time 0.04 hours Cost $0.50 Total Time 2.51 Total Cost - <$31.75 Savings 77% Sum hours worked + Payroll time. 10

Payroll Processing Cost Comparisons Over Time Labor Costs $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 $17,875 $10,725 $3,575 $4,098 $2,459 $820 1st 3rd 5th Paper Electronic Years 11

If you are using a time clock and time cards, how much money could you save if you switched to an electronic Check-In/Check In/Check- Out system? 12

3. Electronic records cannot be misplaced, misfiled or lost whereas paper records can. 13

Example No. 3 is the cumulative Employee Cancellation Report. The data was recorded every time the employee called in to cancel their schedule shift or management changed the shift. Can you track your employees cancellations and reasons over time? 14

Question No. 1 How could you use this report in your facility? One answer is it prevents an employee from continuing to use the death of their Aunt Sadie as an excuse for taking the day off. There is another more important use of this report, what is it? 15

4. Electronic records can be accessed by more than one person at a time whereas only one person can use the same paper records at a time. 16

Example No. 4 Scheduled Underutilized Report. Suppose you are the business manager and one of your responsibilities is to monitor overtime (OT) labor cost for the next pay period. Now you have access to the Scheduled Overtime Cost Report (see next slide) which has tabulated the OT hours and the OT costs for each employee by department. 17

Bi-weekly - Scheduling Scheduled Overtime Cost Report 18

So you get on the phone with the various departments that have Scheduled OT and have them review their Scheduled Overtime Cost Report (their cost column is blank) and their Scheduled Underutilized Report and eliminate the OT hours. Question No. 2 This example demonstrates that you are working with what kind of system? 19

5. Electronic data can easily be imported into other reports whereas data from paper records cannot. 20

Example No. 5 Expiring Certification Report. This data comes from the employees personnel file, Employee Certification Tab. It starts to appear 90 days out on the monitor of administrative employees when they log in each day. This report allows the administration to notify nursing employees to renew their license and to track their renewal. 21

How many costly citations would easy access to this information have prevented at your facility? 22

6. Electronic records improve inter-facility cooperation. 23

Example No. 6 Is the dreaded Quarterly Staffing Report. To be able to accurately generate the Quarterly Staffing Report every one in the nursing and administration departments have to work together. Nursing department schedulers have to schedule the nurses. 24

Nurses have to Check-In and Check-Out correctly. Nursing schedulers need to make adjustments to the schedule as they occur. Administration must maintain an accurate count of the residents on campus. 25

The old saying Garbage in Garbage out applies to the Quarterly Staffing Report and all electronic records. 26

7. Electronic records can be exported to governmental agencies and hospitals. 27

Example No. 7 This is a partial monitor view of a resident s information and diagnosis. Electronic records can be exported to governmental agencies and hospitals. 28

8. Electronic records allow a facility to use the data it generates daily to operate the facility more efficiently. 29

Example No. 8 This is a partial monitor view of the facility s employee sick leave and vacation balances. Can you easily track your employees sick leave and vacation balances over time? 30

Answers to Questions 1. The Employee Cancellation Report is a use- ful tool in an employee s annual review. You can set the beginning calendar start date and the ending calendar end date to retrieve, display and print the report. 2. An electronic record system is a dynamic system as it is always changing when new data is added or updated. 31