emr: return on investment. return on investment roi = gain from investment - cost of the investment...
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EMR: Return on Investment
Return on Investment
ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------ Cost of the Investment
Return on Investment
ROI 50% = $75,000 - $50,000 ------------------------------------------- $ 50,000
Gains from an EMR
•Time Savings for Physicians and Staff•Improvements in Coding•Reduction or Elimination of Transcription Costs•Eliminate Paper Charts and Associated Costs•Reduction of other Cost.•Patient Safety & Satisfaction
Time Savings for Physicians & Staff
Reduction in documenting the chart - Average Time Savings is 5 mintues. - Done in Real-Time. - Point of Encounter. - No Need for longer appointments
Time Savings for Physicians & Staff
Avg Time Saved Documenting a Visit 5 Minutes
Avg Patient Appointments a Day 25
Total Minutes Saved per Day (25 visits x 5 Minutes) 125 Min. (2 hrs)
Additional Patient visits per day 6.5
Total Days worked in 12 month period (5 days/wk x 48 wks) 240
Additional Patient Visits per year (6.5 visits x 240 days) $ 1,560
Total ROI per Physician per Year (1,560 x $50) $78,000
Time Savings for Physicians & Staff
Stop Chasing Paper - No more pulling charts days ahead. - No stacks of charts stranded on desk. - No need to re-file charts.
Time Savings for Physicians & Staff
Time Saved handling paper (est 30 mins/day) 30 Minutes
Additional Patient visits per day 1
Total Days worked in 12 month period (5 days/wk x 48 wks) 240
Additional Patient Visits per year (1 visits x 240 days) 240
Total ROI per Physician per Year (240 x $50) $12,000
More Time Savings for Physicians & Staff
•Reduced time on Patient intake information.•Reduction in Pharmacy call-backs with Electronic prescription.
Improvements in Coding•Under coding due to fear of audit.•Under coding due to lack of time to sufficiently document the level of care.•$40,000 - $50,000 annual loss per physician•$9 Increase in Average reimbursement per visit.
Average Physician Appointments per day
25
Total Days worked in 12 month period (5 days/wk x 48 wks) 240
Patient Visits per year (25 visits x 240 days) 6,000
Total ROI per Physician per Year (6,000 x $9) $54,000
Improvements in Coding
Reduce or Eliminate Transcription Costs
•Real-Time documentation eliminates Transcription costs.•Eliminates the delay in the documentation making it to the chart.•Average Physicians spend $15,000 a year on transcription.
Eliminate Paper Charts and Costs•Average maintenance cost is $8 per record per year.•Average Maintenance cost is $1-$2 per year for Electronic Record.•3,000 Active charts per Physician.•Reduction in Real-Estate expense.
Estimated maintenance of Paper Charts ($8 / chart / year) $8
Estimated maintenance of EMR chart ( $1-$2 / chart / year) $2
Annual Savings per chart ($8 - $2) $6
Assumed active charts per physician 3,000
Total ROI per Physician per Year (3,000 x $6) $18,000
Eliminate Paper Charts and Costs
Reduction of Other Costs
•Eliminate Charge Entry with Automatic Charge Capture.•Automate the process of generating and receiving referrals.•Malpractice Insurance carriers frequently give discounts to user of an EMR system.
Patient Saftey and Satisfaction •Eliminate adverse drug-to-drug and drug to allergy events•Prescribe medications on the patient’s approved formulary list the first time.•Have prescriptions waiting for patients at the pharmacy.•Patient control with Web Portal and personal health record.
ROI from Electronic Medical Records
ROI from Time Savings $ 78,000
ROI from Time Savings - Handling Charts $ 12,000
ROI from Electronic vs Paper Charts $ 18,000
ROI from Transcription Costs $ 6,000
ROI from Coding Improvements $ 54,000
ROI from Charge Capture $ 5,000
Total ROI per Physician per Year $175,000
ROI from Electronic Medical Records
First Year “Hard” Costs $ 30,000
First year “Soft” Costs $ 30,000
Annual Network/Software Maintenance $ 10,000
Annual Training for New Staff $ 5,000
Annual Hardware Depreciation $ 5,000
BEST CASE ROI/Physician 1st Year $178,000 - $60,000 $ 118,000
BEST CASE ROI/Physician 2nd Year+ $ 178,000 - $ 20,000 $ 158,000
Typical ROI Expected 2nd Year+ %50 of $158,000 $79,250
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