The healthcare industry has definitely changed:

1. Medical liability insurance increased 65% from 2000 to 2008.

2. Over a 10-year period, physician's earnings fell 5% compared to executives whose rose 10%.

3. Are your operating costs rising faster than revenues?

4. How's your compensation level in this era of declining reimbursement?

5. Information Technology (IT) has evolved from being a "necessary evil" to becoming absolutely critical to your practice. Even without EHR, if your IT systems don't work properly - or fails altogether - the disruption to your practice is severe. With an EHR installed, you might as well close your doors because you won't be able to see patients.

Where are we as a country with EHR implementations? According to a CDC 1/09 report, only 6.3% of practices had a fully-functional EHR system; 20% had some basic functionality. So, if you're one of the 80 - 93.7% practices who haven't implemented an EHR system, you're not alone!

Unfortunately, the failure rate of EHR implementations is high: In 2007, the U.S. Office of the National Coordinator for Health IT reported that about 50% of EHR implementations were considered failures due to poor planning & communication, mismanagement and/or end-user rejection. If you're planning to select an EHR solution, you need to be aware that the process is lengthy - and painful - if not done properly.

Preparing for EHR
There are four "major steps" which need to be diligently followed to make sure you're one of the 50% whose implementations succeed:

1. Internal assessments of your current and required IT environment.

2. Software selection of an EHR solution and any other systems you'll need implemented.

3. Plan and document for pre-implementation readiness.

4. Create and follow implementation and operation procedures.

The AMA has published "15 questions to ask before signing an EMR or EHR agreement" which actually lists 130+ questions such as:

Does the EMR system function appropriately for your practice?

How will your data populate in the new system?

How will the new software and technology interface with key systems in use now?

On top of all this, the Total Cost of Ownership (TCO) of an IT system to support your EHR solution is significant. A 2009 TCO study for in-house and MSP (Managed Services Provider) models for a 3-physician group's IT system over a 3-year period calculated these figures:

In-house model: $799,308

MSP model: $534,137.

EHR and "Meaningful Use"
The financial impact of EHR is both positive and negative. As you're probably aware, "Meaningful Use" means reimbursements of practices for their implementations:

Start of 2011: $44,000 per physician (pp)

2012: $44,000 pp

2013: $39,000 pp

2014: $24,000 pp

10% incentive for Medicare reimbursements

But there are negative consequences if you don't get to "Meaningful Use," from 1 - 3% in Medicare penalties.

What's the impact on your practice if your IT system fails?
Information Technology Intelligence Consulting (ITIC) conducted a survey of physicians with an EHR installed. 70% stated that there would "absolutely be disruptions" to patient care and important administrative processes if there was an inability to access EHR files and data. The major disruptions involve processing insurance claims, billing, scheduling patient appointments and the potential for data processing errors. The survey results show that "the majority of healthcare organizations clearly recognize how EHR can reduce overhead expenses and improve patient care. They also understand that those benefits are contingent on maximum uptime, and where downtime would have the most serious effect."

Do you want to be the 1 in 2 practices whose EHR system fails? A deliberate, process-driven methodology for planning, selecting, and implementing an EHR/IT system is essential. As John Wooden said: "If you don't have the time to do something right, when will you have time to do it over?"

EHR Benefits
The EHR stimulus money is just icing on the cake; the original reasons to install a totally-integrated solution are the same as they were when EHRs were first introduced:

1. Better compliance with regulations

2. Greater efficiency = decreased costs and improved cash flow

3. Ease of access to patient data

4. Optimum method for utilization reviews and performance measurements.

A 10/25/10 MGMA study supports these claims:

$49,916 increased revenue after operating cost per FTE vs. practice with paper records

Greater expenses ($105,591 per FTE) but had $178,907 greater median revenue per FTE vs. practice with paper records

And there are measurable productivity gains after successfully implementing an EHR solution: A 5/5/10 study showed a statistically significant increase of 9 provider visits per month per physician in group of adopters vs. non-adopters. Using an average physician office visit of $155 x 9 visits/mo. = $16,740/yr. x 3 years = $50,220 per physician in measurable productivity gains.

Importance of Information Technology
Regardless if you're not planning an EHR implementation, are planning one - or already have it installed - you need IT systems to work seamlessly, reliably, efficiently and with maximum uptime.

How can you go about this? You need someone who has the experience in medical technology to guide you through the IT maze. What do you need to do?

One of the first things that need to be done is a technology assessment, covering network architecture, a perimeter security review, computer hardware and medical system inventory, installed software, and physical infrastructure.

The implementation process requires an internal assessment, software selection, pre-installation readiness, and a plan to deal with the impact on your practice.

Choose your IT partner wisely
With all these considerations, who you choose to guide you through this process is absolutely critical to your business. How do you go about finding someone? You need someone's who's "been there, done that" with:

The medical industry as their primary focus

Extensive experience in your practice area

Proven integration proficiency with medical systems - regardless of what's installed.

Contact Nexus Practice IT Services, who has the experience you need, to have them help you through the EHR "maze:" sales@nexuspracticeit.com or 877-916-3987.