Meaningful Use incentives are one reason to implement electronic medical record software, but there are other financial benefits to using an EMR, as well.
Electronic medical record (EMR) software can reduce care costs and improve patient safety, making implementing the software an arguably good investment – but physician practices are often hesitant to spend money on technology that might not deliver a sufficient return on their investment. After all, while doctors are in the business of savings lives, doing so would be impossible if high overhead costs and low returns were to force them out of business.
The problem with calculating EMR savings, however, is that it isn’t always easy to do. In fact, despite having implemented the very same piece of software, the return on investment (ROI) for one practice could be drastically different than for another. After all, using an EMR can be cost effective, but setting it up takes work.
A practice that decides to use its EMR’s integrated billing module, for example, is likely to spend less on implementation than one that needs an interface built to connect their current software to the EMR. Meanwhile, a practice that has to hire a temporary worker to scan paper records into the EMR will end up spending more than one with the resources to handle the task in-house.
More importantly, the time it takes to recoup money invested in an EMR can vary greatly, and physicians looking for a quick return are often disillusioned by the time it takes to notice decreased costs. With patience, though, and careful planning the savings do materialize. Here’s how:
1. Reduce office supply expenses.
One of the things that EMR companies tend to advertise most is that implementing their software will allow practices to go paperless. Doctors relish the thought of all the money they can save by eliminating paper – and they’re sold.
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The truth is EMRs don’t eliminate paper use altogether, and truly paperless practices don’t exist. But an EMR can significantly reduce the need for paper, driving monthly hard costs down and leaving money in the budget for other expenses. In fact, a single-provider practice that sees a modest 30 patients a day can save as little as $400 to $500 dollars a month in paper-based fees alone.
To calculate potential savings for a particular practice, physicians can use an EMR ROI calculator. This tool allows the input of specific data, such as how many new patient charts are created on average, how many superbills are printed and how many papers are faxed each day, and it estimates monthly savings.
2. Increase productivity.
Learning to use an EMR– not to mention redesigning workflow to adapt to electronic charting – can be overwhelming and will almost certainly slow physicians down at first. As learning takes place, however, particularly for practices that focus on the training aspect of implementation, productivity will slowly increase, translating into big savings over time.
Once physicians and staff get the hang of using an EMR, for example, documenting patient visits and carrying out billing processes will take less time. This allows physicians to spend more time with patients or to schedule more appointments to bring in extra revenue for the practice.
3. Gain office space.
A benefit that practices often fail to consider is the storage space that is inevitably freed up by going digital. After all, once paper files have been scanned and are safely stored within the EMR, it becomes unnecessary to continue storing them on-site. But what to do with an empty chart room?
The obvious answer is to turn the space into an exam room so that it becomes an extra source of revenue. This provides practices with the possibility for growth – whether to take on a new associate or for existing physicians to treat more patients – without incurring any additional costs.
Of course, the extra office space can also be used to generate revenue in other ways. For example, rooms with more square feet can be used to offer yoga or Zumba classes to patients for a fee. The space can also be used to hold support group meetings for patients who are trying to stop smoking or for those struggling with weight loss. The possibilities are endless.
4. Allocate staff resources more efficiently.
The most obvious example of how an EMR system allows practices to save money when it comes to staff is that it eliminates the need for a full-time medical records clerk. That’s savings of more than $2,000 a month, which for many practices is even greater.
Another alternative to cutting overhead without letting a staff member go is to use them in a more efficient way. For example, a file clerk can be trained to perform front desk duties, reducing workload for other employees and eliminating overtime. This can allow practices to grow their operation by making use of a newly-converted exam room, without necessarily having to take on an additional employee.
The important thing to remember about implementing an EMR solution is that savings will be noticed not immediately, but over time.
