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Financial Evaluation and Profitability Analysis of Electronic Medical Record (EMR) System Implementation in Healthcare

An evaluation of the financial feasibility and profitability of implementing Electronic Medical Record (EMR) systems in healthcare.

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    Financial Evaluation and Profitability Analysis of Electronic Medical Record (EMR) System Implementation in Healthcare Conduct a detailed financial evaluation and profitability analysis for the implementation of an Electronic Medical Record (EMR) system in a healthcare facility, as outlined in the provided analysis. Your response should cover the following key components: 1. Initial Cost Estimate : Break down the various costs involved in implementing the EMR system, including software licenses, hardware, implementation costs, and temporary productivity loss. 2. Annual Benefits : Explain how the implementation of the EMR system leads to cost savings, including chart pulls, transcription costs, adverse drug events, drug utilization, laboratory utilization, radiology utilization, charge capture improvements, billing errors, and administrative expenses. 3. Profitability Analysis : Calculate the 5 - year return on investment (ROI) for a single provider, considering the present value of costs and benefits. Discuss the payback period and sensitivity analysis results. 4. Functional Variations : Analyze the effect of different EMR feature sets (Light, Medium, and Full EMR) on net benefits. 5. Sensitivity Analysis : Interpret the impact of fluctuations in key components, such as software licenses, support, hardware costs, and temporary productivity loss, on the overall project profitability. Ensure your response includes calculations where appropriate, and explain the financial viability of the project from the hospital’s perspective.

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    Word Count Requirement : 1,500 - 2,000 words.

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    Financial evaluation The financial evaluation of the project needs consideration of all these factors which needs additional outflow of resources or which may result in saving of cash for the hospital once the implementation has been completed. It is usually difficult to get the actual cash cost figures from any organization as first these cost information are confidential and in few cases, it is difficult for the organizations to calculate the correct figures. Here in my analysis, I tried to collect the information from different sources, such as the reports of the hospital and the internet resources. I also did the best case estimates in case I am not in a position to get the figures from any such sources. As the accuracy of the estimate can be challenged, I carried out the sensitivity analysis and tried to use the extremes. Initial cost estimate Initial cost estimate has been done using the information available on several web sites and based on the information available from the best case estimate. The following table shows quantitative figure, basis as well as the sensitivity range: - Table 1. Costs of Electronic Medical Record System (Per provider in 2013 in US Dollars) Cost Components Base cost Sensitivity Reference Software license (annual) $5,355 $2700 - $11000 * Implementation $8,500 +* Support, audit and reviews $4,000 $2000 - $8000 * Hardware (refresh every 3 years) $8,000 $4000 - $16000 * Temporary Productivity loss $35,000 $18000 - $50000 + Annual costs $60,855 * http://www.emrapproved.com/cost - estimate - tool.php + 20% in first month, 10% in second month and 5% in third month +* For initial data immigration $5000 and training $3500

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