True Costs for Successful EHR Implementation

Published by Pradip Sengupta, CEO of IPS Technology Services http://www.ipstechnologyservices.com/ 

In order to increase the probability of success for EHR implementation, a physicians practice must take a comprehensive look at all cost components. Understanding true costs of EHR implementation keeps all surprises away and does not create unreal expectations in terms of ROI on EHR and eliminates distractions. Here are the areas that are relevant for EHR implementation that a physicians practice must keep in mind as they are preparing a project budget and calculating ROI for this important investment.

1. Software Costs

• License Fees – A practice must pay for software licenses. A common mistake made today is try to determine costs on the basis of number of doctors and not consider other users which also needs to be accounted for. A software company typically charges doctors at a higher rate than other users (typically at 50% less)
• Annual software licensing, upgrades, support – It is recommended to sign up for this arrangement. It is typically 15-20% of the license fee and not 15-20% of the total implementation cost. This gives support and helpdesk access to users which is critical to successful implementation. It also ensures that the practice will get software updates as they are realized. For an immature industry such as Healthcare IT, annual maintenance is highly recommended.

2. Implementation and Startup Costs

• Hardware – Depending on how the software will be installed e.g., either by using the client server model or ASP, it will have an impact on the implementation costs. For client server, a physician may have to purchase hardware 
• Software Development and Integration – In order to implement EHR, a number of interfaces may need to be developed including setting up templates, billing arrangement, integrating with other software packages

3. Configuration

• Workflow – When implementing EHR on of the critical tasks to be done is definition of workflow. This is mandatory so that the software can be configured appropriately to add value to the practice. 
• Configuration – The software company with the help of the stakeholders needs to sit down to define requirements based on which the software will be set up. 
• Meaningful Use – If the physician practice is eligible to get incentive dollars steps must be taken by the project team to configure software so that the practice can apply and get the large amount of incentive dollars following the ARRA act. 
• Reports and other Documents – Time required to define and program all reports and other documents needed to manage the practice.

4. Consulting and Project Management Costs

• EHR implementation is new to physician’s practice. Compared to the IT needs exists until now, the level of due diligence and risk for this transition is somewhat unprecedented for them. Success for an EHR implementation will be much higher if it is viewed as a project and all the best practices are implemented as much as possible. It is recommended to keep appropriate resources available for this purpose irrespective of whether it is internal or external.

5. Training Costs

• Training existing users in new technology is fundamentally important for a drastic change like Healthcare reform. It can’t be over emphasized. A physician must take this into consideration and budget for it to address the learning curve issue and get back on track in terms of productivity in the shortest period of time … the organization shouldn’t drag itself with the excuse of not being able to use the new software.

6. Intangible Costs

• A physician’s practice will experience unproductive time well after EHR implementation is completed. It is natural and happens whenever a new technology or process is implemented for an organization. If possible, some time should be spent to identify what these are and to quantify them in terms of dollars. This will paint the true ROI of EHR implementations.

Given the above critical guidelines for EHR implementation cost, the key thing for a physicians practice is to understand that it must treat EHR implementation as a project and appoint a project manager. A good project manager can ease the pain of change and ensure benefits for an EHR implementation.

To know more about Healthcare IT implementation best practices, feel free to call IPS Technology Services at 248-835-9895 or go to http://www.ipstechnologyservices.com/

No portion of this article will be copied or reproduced without written permission from IPS Technology Services.

Content of this blog is IPS Technology Services Confidential; All rights reserved.

5 Critical Success Factors for a Successful EHR Implementation

 Published by Pradip Sengupta, CEO of IPS Technology Services www.ipstechnologyservices.com

OK, now you are sold on upgrading your Healthcare IT and you have already selected the software based on business requirements and goals. What do you do now? How do you make sure that your EHR is successfully implemented and how do you know that you will achieve all potential benefits and ROI as expected?

Here are FIVE major factors that are often forgotten or not fully considered in an EHR implementation. It is quite common that the stakeholders of EHR implementation know about them but choose not to pay attention or ignore them to cut costs. However, if any of the following factors are neglected or not thought through to develop a project plan, an EHR implementation may not produce desired results… as a matter of fact, it may end up in a disaster.
The FIVE critical success factors are:

1. Workflow Definition – In order to get the best out of an EHR installation a practice must have ALL its processes identified and documented with clarity. These process logical flow diagrams must also identify all data that transfer from one process to the other as well as from step to step within a process. The better the definition of workflow, easier will be the EHR implementation.

2. Work Standardization – It is not uncommon to find different physicians within the same practice use a “slightly” different version of the same process. This may be due to physicians’ preferences or bias towards a particular type or test or medicine or procedure based on their years of experience. While it is expected to have variations within the same workflow, the goal should be to minimize it as much as possible to improve quality of services and reduce costs. Whatever the case may be (more variation or less), all process deviations must be well understood and documented for better and quicker implementation of EHR.

3. Software Configuration – One of the major factors to ensure successful implementation is to pay a tremendous emphasis on software configuration which is defined as the process of setting up the EHR package based on business requirements and business goals. For example, if a physicians practice has five locations and it wants to see billing summary information and patient medical history by location as well as by physician, it needs to be documented so that the EHR software can incorporate it during set up.

4. Project Plan and its Execution – EHR software implementation is not a one transaction type activity such as installation of a desktop software, or setting up of a PC, or a phone system. EHR implementation must be viewed as a project with multiple transactions among multiple parties. EHR implementation must have a plan with specific deliverables, tasks, and a time line. In order to increase the probability of success, project activities must be monitored by stakeholders on a regular basis to ensure proper execution.

5. Training – One of the major activities that is also often ignored is appropriate amount of training given to ALL critical players. A practice may decide to cut the training plan short to save money. However, adequate training must be considered as a necessary evil and a mandatory task to get maximum return on investment. Without adequate training and support productivity of the organization will suffer due the change brought by a new tool such as EHR and it will be doomed for failure. The EHR project champion must plan properly and allocate training dollars to get project benefit for the practice.

To conclude, the take away from this short article is to understand that an EHR implementation must be treated as a project and the probability of success will improve significantly provided the practice appoints a seasoned project manager. A good project manager will make sure that the project objectives are met and benefits for an EHR implementation are achieved through the development and execution of a detailed project plan.

To know more about Healthcare IT implementation best practices, feel free to call IPS Technology Services at 248-835-9895 or go to http://www.ipstechnologyservices.com/

No portion of this article will be copied or reproduced without written permission from IPS Technology Services.

Content of this blog is IPS Technology Services Confidential; All rights reserved.