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EMR: Return on Investment

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Page 1: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

EMR: Return on Investment

Page 2: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

Return on Investment

ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------ Cost of the Investment

Page 3: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

Return on Investment

ROI 50% = $75,000 - $50,000 ------------------------------------------- $ 50,000

Page 4: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

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

Page 5: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

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

Page 6: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

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

Page 7: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

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.

Page 8: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

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

Page 9: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

More Time Savings for Physicians & Staff

•Reduced time on Patient intake information.•Reduction in Pharmacy call-backs with Electronic prescription.

Page 10: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

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.

Page 11: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

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

Page 12: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

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.

Page 13: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

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.

Page 14: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

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

Page 15: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

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.

Page 16: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

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.

Page 17: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

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

Page 18: EMR: Return on Investment. Return on Investment ROI = Gain from Investment - Cost of the Investment ------------------------------------------------------------------------

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