By Patrick Doyle
For decades now technology has helped ambulatory surgery centers (ASCs) and specialty hospitals streamline costs, better manage their practice and improve quality of care. One of the more recent software advancements reclaims significant time and money by eliminating paper-based systems.
With so many choices to consider when choosing one of these software solutions, determining which one is best for your facility and understanding the financial commitment can be overwhelming.
It is important to first understand the many ways in which software systems can help your facility save money. Creating more efficient processes yields significant financial savings. For example, electronic health record (EHR) systems eliminate the need for your staff to spend hours preparing paper charts; including chart pack assembly, collating, document and chart retrieval, and copying and faxing. Combined, these hard and soft costs can add up to more than $120,000 per year.
Additional savings can be achieved through the elimination or reduction of the amount of money spent on chart materials, including dividers and tabs, chart folders and covers and pre-printed forms. Financial savings are also achieved through the elimination of document security, which includes shredding and storage costs. While these expenses may seem nominal, they can add up to many thousands of dollars per year.
For key stakeholders to make informed decisions, it’s imperative to know your budgetary limits, and what you want to accomplish with the software solution.
For facilities looking to reduce clinical and management operational costs, digitizing medical records is a good place to start. Digitizing can be achieved through one of three main systems. A full-blown EHR captures clinical and management data, maintains interoperability standards and incorporates discrete data capture. A computerized medical record where the system creates static documents (with no interoperability standards or discrete data) and produces electronic versions of clinical chart management is another option. A third option is a simpler electronic document management (EDM) system, which utilizes paper in a traditional way while enabling information to be scanned and stored electronically.
The benefits associated with digitizing medical records vary as much as the systems themselves. The cost savings when an EHR is implemented can be found in the elimination of the material required to produce and maintain a paper record, as well as the man hours required to support the production and maintenance of a paper record. Additional savings can also be found in clinical efficiencies gained including increased patient safety, faster case turnaround and more accurate benchmarking.
A computerized medical record reduces costs associated with document assembly and management, however it stops short at clinical management benefits. An EDM system simply eliminates offsite paper storage costs. Determining what costs you want to reduce or eliminate will help decide which system will best fit your needs.
Software acquisition budgeting: License model vs. service model
Once you have determined your software needs, there are two basic options to consider for software acquisition: a license model and a service model. With a license model, the facility owns the software and pays a high upfront fee followed by annual support fees to keep the software updated. With a service model, the facility rents or leases the software and pays a smaller upfront fee which is followed by a recurring monthly fee.
For example, a license model for an EHR system might require $75,000 for acquisition and a $15,000 annual fee, while a service model might require a $10,000 acquisition cost and then recurring monthly payments to make up the additional cost. Facilities that have the option of using capital outlay during the implementation year are more likely to choose the license model. For cash-strapped facilities, the ability to space payments out over time often makes the service model more appealing.
Implementation costs
When pursuing a license model, in addition to the software license you will need to include software customization costs within your budget. Software customization will be approximately five percent of the total cost of the software. The software will also come with a recurring annual maintenance fee which you will need to factor into your budget.
Additional software-related costs which are often overlooked in favor of “hard costs" are “soft costs." Soft costs may include the cost of labor to implement the software, a process which can take approximately three months. You will also have to budget for short-term case volume disruption; plan for a 10 percent drop in cases for three months.
When considering your software acquisition, don’t forget to plan for the future. As your database grows, so will your computing and processing needs. Planning for this growth in advance will ensure that your system lasts longer and works more efficiently. For virtually any budget there is a software solution that can digitize your existing paper-based system, and the benefits can’t be ignored. Knowing what you need from a system, and solid planning and execution, are key to a successful acquisition and implementation.
Patrick Doyle is vice president of sales for SourceMedical. Doyle has nearly 20 years of experience in healthcare industry and more than 10 years working to provide automated business solutions for outpatient healthcare facilities. Doyle has worked extensively with national healthcare chains as well as independent facilities to automate clinical and management operations. Currently, Doyle manages the sales and account management team for SourceMedical’s surgery division which has more than 2,200 surgery center customers.
