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http://www.healthit.gov/providers-professionals/faqs/how-much-going-cost-me

How much is this going to cost me? Abdoulaye M Yansane Abdoulaye M.Yansane The Basics

Several studies estimate the cost of purchasing and installing an electronic health record (EHR) ranges from $15,000 to$70,000 per provider .1-5 Costs vary depending on whether you select on-site EHR deployment or web-based EHR deployment. Web-based EHR deployment, known as Software as a Service (SaaS), typically requiresproviders to pay a fixed monthly subscription cost. On-site deployment typically requires providers to pay for ongoingcosts to support and manage on-site data servers.

The following chart from the Michigan Center for Effective IT Adoption provides estimated average upfront cost, yearlycost, and five year total cost of ownership (TCO) for on-site and SaaS EHR deployment. These cost estimates are basedon the experiences of Regional Extension Centers (RECs) in the field.

Cost

In-Office SaaS

UpfrontCost

YearlyCost

5YearTCO

UpfrontCost

YearlyCost

5YearTCO

EstimatedAverage

Cost $33,000 $4,000 $48,000 $26,000 $8,000 $58,000

Doing the Math - The Five Main Components of EHR Implementation

To estimate how much EHR ownership will cost your organization, you should consider the five main componentsof EHR implementation. These cost components relate to ambulatory primary care settings, as opposed to hospitalswhich may have different cost structures.

Hardware: Potential hardware costs may include database servers, desktop computers, tablets/laptops, printers, andscanners.

EHR Software: Potential software costs include an EHR application, interface modules (e.g. lab interface module), andupgrades to your EHR application. Remember, software costs vary depending on whether you select an on-site EHR deployment or a SaaS EHR deployment.

Implementation Assistance: Potential implementation assistance costs include ITcontractor, attorney, electrician,and/or consultant support; chart conversion; hardware/network installation; and workflow redesign support. Your local Regional Extension Center (REC) can help. Contact your local REC to find out if you are eligible for free or reducedprice support.

Training: Your organization will need to train your physicians, nurses, and office staff before andduring EHR implementation. Physicians, nurses, and office staff need to understand how to use the EHR and associatedhardware and how the EHR will create new workflows for your practice.

Ongoing Network Fees and Maintenance: Potential ongoing costs include hardware and software license maintenanceagreements, ongoing staff education, telecom fees, and ITsupport fees. In addition, your organization may need to hirenew staff, such as IT operations staff, clinical data analysts, or application analysts.

Your Local Regional Extension Center Can Help

Your local Regional Extension Center (REC) can help you calculate how much EHRimplementation will cost your practice. RECs are located in every region of the country to help health care providers select, implement, and becomeadept and meaningful users of EHRs .Contact your local REC to find out if you are eligible for free or reduced-pricesupport.

References

1. Blumenthal D, Glaser JP. Information Technology Comes to Medicine. N Engl J Med. 2007.

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2. Smith PD. Implementing an EMR System: One Clinics Experience. Fam Pract Manag. 2003.

3. Fleming NS, Culler SD, McCorkle R, Becker ER, Ballard DJ. The Financial And Nonfinancial Costs Of Implementing Electronic HealthRecords In Primary Care Practic es. Health Aff. 2011.

4. Miller RH, Sim I, Newman J. "Electronic Medical Records: Lessons from Small Physician Practices " [PDF - 477.3 KB]. iHealthReports. 2003.

5. Bodenheimer T, Grumbach K. Electric technology: a spark to revitalize primary care? JAMA. 2003.

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Electronic Health Record Implementation Planning Here are some tactical steps that typically occur during the planning phase. Youmay collaborate with and use tools provided by your Regional...How are Regional Extension Centers different from vendors and IT consultants? Your Local Regional Extension Center: A Trusted Advisor Your Regional Extension Center (REC) is not an electronic health record(EHR) vendor trying to sell an EHR system or a product. Your local REC...

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