What are the benefits of electronic health records? Human Resource files? Invoices?
Implementing an electronic records system has the potential to provide extraordinary benefits for clinics, healthcare organizations, and physicians. By facilitating workflows and improving the overall quality of patient care and safety, electronic documents are able to provide a wealth of measurable benefits – including some impressive financial savings.
Financial Benefits of Electronic Health Records (EHRs)
A study, published by The American Journal of Medicine, has shed some light on the financial costs and benefits associated with an electronic health records system. This particular study looked to find quantifiable cost savings directly influenced by electronic records – and what they found was astounding.
The estimated net benefit from implementing an electronic health record system in a primary care setting over a 5 year period? $86,400 per provider.
Researchers even accounted for the inevitable productivity loss during the implementation of an EHR system. In this particular study, researchers found that even if a healthcare organization sustained a prolonged 10% productivity loss for 12 months…there was still a 5 year net benefit of $57,500 per provider.
According to this study, the primary benefits/savings accrued came from:
- Savings in drug expenditures
- Improved utilization of radiology tests
- Better capture of charges
- Decreased billing errors
However – this study did not include other cost saving factors, such as:
- Decreased malpractice premium costs
- Storage costs
- Supply costs
- Generic drug substitutions
- Increased productivity
- Decreased staff requirements
- Increased reimbursement from more accurate patient evaluations
- Decreased claims denials from inadequate documentation
Not only does this study illustrate the ROI of electronic records – it illustrates that these financial savings are just the tip of the “benefits” iceberg.
Without a doubt, the implementation of an electronic record system in a healthcare setting can result in a positive return on investment. However, healthcare organizations should also be looking to expand their electronic document systems to include more than just medical records. Consider the financial benefits to be had enhancing other paper-intensive processes, such as the management of HR files or the indexing of invoices.
Electronic documents have proven their value as medical records – so why not share the savings with every department?
For more details on this study, visit The American Journal of Medicine.