Be Prepared For Significant IT Investments As a Result of EHR Implementation

Government incentives will only offset electronic health record (EHR) costs by about 15% to 20%, according to McKinsey & Company—which means health care providers should be prepared to make a significant investment as part of a “radical new approach to IT.” According to their study published in management consulting firm McKinsey & Company’s business journal McKinsey Quarterly , American Recovery and Reinvestment Act (ARRA) money will not come close to covering the expenses of an EHR. “This should not be a news flash,” wrote Paul Roemer on the Healthcare IT Strategy blog. The question is: what should a health care provider do? Although the McKinsey & Company study focuses on hospitals, its advice can be applied to physician offices as well. According to the study, three factors will distinguish the best EHR implementations: governance with real authority, radical simplification of architecture, and methodical planning and execution. Also according to the study, health care providers who keep these factors in mind “will be well positioned not only to meet their compliance responsibilities but also to lower their operating costs significantly while improving the quality of patient care.” Roemer takes that advice a step further, suggesting that health care providers approach EHR implementation purely from a business perspective, asking how it will help them be more efficient and effective. “If your EHR can help you do these two things, you will meet other goals, goals like providing better care, reducing the number of errors, saving time, and eliminating processes that add no value,” he writes. “Therein lays the all-too-elusive ROI.” “It is worth a phone call to your EHR vendor,” he adds. Related articles Expert: Providers must make IT investments on their own, have new implementation strategies Reforming hospitals with IT investment Will the ARRA money be worth the effort? doctor in white medical gownGovernment incentives will only offset electronic health record (EHR) costs by about 15% to 20%, according to McKinsey & Company—which means health care providers should be prepared to make a significant investment as part of a “radical new approach to IT.”

According to their study published in management consulting firm McKinsey & Company’s business journal McKinsey Quarterly, American Recovery and Reinvestment Act (ARRA) money will not come close to covering the expenses of an EHR.

“This should not be a news flash,” wrote Paul Roemer on the Healthcare IT Strategy blog.

The question is: what should a health care provider do?

Although the McKinsey & Company study focuses on hospitals, its advice can be applied to physician offices as well. According to the study, three factors will distinguish the best EHR implementations: governance with real authority, radical simplification of architecture, and methodical planning and execution. Also according to the study, health care providers who keep these factors in mind “will be well positioned not only to meet their compliance responsibilities but also to lower their operating costs significantly while improving the quality of patient care.”

Roemer takes that advice a step further, suggesting that health care providers approach EHR implementation purely from a business perspective, asking how it will help them be more efficient and effective.

“If your EHR can help you do these two things, you will meet other goals, goals like providing better care, reducing the number of errors, saving time, and eliminating processes that add no value,” he writes. “Therein lays the all-too-elusive ROI.”

“It is worth a phone call to your EHR vendor,” he adds.

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Published with permission from TechAdvisory.org. Source.