The ABCs of ASPs. What healthcare facilities need to know when choosing an application service provider

Two of the most important questions to consider when selecting a new software application are (1) does the application include the features and functionality desired? And (2) should the application be implemented and supported by in-house personnel or by an outside organization--namely, an application service provider, or ASP? Answering the first question is usually a straightforward process. Answering the second question, however, can be more difficult--especially considering the recent proliferation of ASPs and the wide variety of healthcare services now being offered by these organizations. In this article, we discuss the advantages and disadvantages of contracting with an ASP and offer guidance to help healthcare facilities determine whether an ASP would be an appropriate choice for their situation. We also provide guidance to help those facilities that choose to contract with an ASP select an appropriate provider and pricing model.