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Cost-justifying electronic medical records.

¹MedicaLogic, Inc., Beaverton, OR, USA.

Healthcare Financial Management : Journal of the Healthcare Financial Management Association

|September 4, 1996

Summary

Determining the cost-benefit of electronic medical record (EMR) systems is challenging. Financial managers must understand the full costs and qualitative benefits for accurate assessment.

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Area of Science:

Health Informatics
Healthcare Management
Financial Analysis

Background:

Increasing adoption of electronic medical record (EMR) systems necessitates robust financial justification.
Traditional cost-benefit analyses often fall short in capturing the full financial impact of EMR implementation.
Quantifying intangible benefits of digitized clinical information presents a significant challenge.

Purpose of the Study:

To highlight the complexities in determining the cost-benefit ratio of electronic medical record systems.
To inform healthcare financial managers about the comprehensive costs associated with EMR technology.
To emphasize the importance of understanding both quantitative and qualitative benefits in EMR assessments.

Main Methods:

Review of financial assessment methodologies for health information technology.
Analysis of cost components beyond hardware and software for EMR systems.
Exploration of challenges in quantifying qualitative benefits of clinical information computerization.

Main Results:

The total cost of implementing EMR systems extends beyond initial technology acquisition.
Qualitative benefits, such as improved patient care and data accessibility, are difficult to monetize.
Existing financial tools may have limitations in fully assessing EMR value.

Conclusions:

Healthcare financial managers require a nuanced understanding of EMR financial evaluation.
A comprehensive approach is needed to account for all costs and benefits of EMR systems.
Awareness of the uses and limitations of financial tools is crucial for effective EMR technology assessment.

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