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Finding the ROI in EMRs.

Douglas I Thompson¹, Neil S Fleming

¹CSC, Inc., McLean, Va., USA. dthompson22@csc.com

Healthcare Financial Management : Journal of the Healthcare Financial Management Association

|August 8, 2008

Summary

This summary is machine-generated.

Calculating the return on investment (ROI) for electronic medical records (EMRs) requires careful financial analysis. Avoid common pitfalls like overestimating time savings or ignoring revenue impacts for accurate EMR ROI assessments.

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Area of Science:

Health Informatics
Health Economics
Clinical Research

Background:

Electronic Medical Records (EMRs) are widely adopted in healthcare settings.
Accurate calculation of the Return on Investment (ROI) for EMR implementation is crucial for healthcare organizations.
Existing methods for EMR ROI calculation may contain inherent biases and inaccuracies.

Purpose of the Study:

To identify and describe common pitfalls in calculating the ROI of Electronic Medical Records (EMRs) using clinical study data.
To highlight areas where financial analyses may lead to inaccurate EMR ROI estimations.

Main Methods:

Analysis of common financial assessment methodologies applied to clinical studies evaluating EMRs.
Identification of five specific, recurring errors in EMR ROI calculations.

Main Results:

Pitfall 1: Assigning monetary value to time savings without corresponding staff reductions.
Pitfall 2: Including unquantifiable or estimated cost savings.
Pitfall 3: Neglecting the revenue implications of optimized resource utilization.
Pitfall 4: Failing to establish baseline performance metrics when projecting benefits.
Pitfall 5: Utilizing fixed costs inappropriately in financial savings evaluations.

Conclusions:

The accurate financial assessment of EMRs requires rigorous methodology, avoiding common calculation errors.
Addressing these pitfalls is essential for reliable EMR ROI determination and strategic healthcare investment.