Related Experiment Videos
Financial analysis projects clear returns from electronic medical records
Karl F Schmitt1, David A Wofford
1Healthcare Information Technology Division, ECG Management Consultants, Inc., Seattle, Washington, USA. kschmitt@ecgmc.com
Summary
Implementing an electronic medical record (EMR) requires careful cost-benefit analysis. Engaging operational staff is key to demonstrating significant financial returns and justifying EMR adoption.
Area of Science:
- Health Informatics
- Healthcare Management
- Health Economics
Background:
- Electronic Medical Records (EMR) implementation is a significant undertaking for healthcare organizations.
- Quantifying the financial benefits of EMR adoption is often challenging, leading to executive hesitancy.
- A clear understanding of costs versus benefits is crucial for successful EMR implementation.
Purpose of the Study:
- To outline a strategic approach for demonstrating the financial viability of EMR systems.
- To emphasize the importance of operational input in financial benefit analysis for EMRs.
- To encourage healthcare executives to overcome barriers to EMR adoption through robust financial justification.
Main Methods:
- Involving operational representatives from various organizational areas.
- Identifying potential cost savings through process improvements.
- Identifying opportunities for additional revenue streams post-EMR implementation.
Main Results:
- A structured approach can convincingly demonstrate that EMR financial benefits exceed costs.
- Operational staff possess unique insights into cost-saving and revenue-generating potentials.
- Successful EMR implementation hinges on a thorough financial analysis involving key stakeholders.
Conclusions:
- EMR adoption is financially justifiable when approached with a comprehensive cost-benefit analysis.
- Cross-departmental collaboration is essential for accurate financial forecasting in EMR projects.
- Strategic financial planning can overcome perceived uncertainties in EMR return on investment.