Electronic medical records systems may reduce costs

AORN Journal,  Sept, 2007  

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An academic medical center in Rochester, New York, recouped its investment in an electronic health records system within 16 months, according to a July 12, 2007, news release from the American College of Surgeons. The initial costs of implementing an electronic health records system have been cited by health care providers as a primary obstacle to adopting such a system. In addition, evidence supporting a positive return on investment for such systems has been largely anecdotal.

Researchers measured the return on investment of the installation of electronic health records system at five ambulatory offices representing 28 providers within the university's medical center. The study analyzed record-keeping expenses such as support staff salaries and time spent putting and creating charts, filing, and performing transcriptions. When researchers compared 2003 third-quarter costs (ie, when records were kept manually) to 2005 third-quarter costs (ie, when records were kept electronically), they estimated that the new electronic medical records system reduced costs by $393,662 per year. Nearly two-thirds of that savings resulted from a sharp reduction in the time required to pull charts manually.

When researchers factored in the cost to install and operate the new electronic medical records system (ie, $484,577), they concluded that it took 16 months for the center to recoup its investment. After the first year, the system costs approximately $114,016 annually to operate, which translates to a savings of $279,546 each year for the medical center or $9,983 per provider.

Study shows an electronic medical records system can pay for itself within 16 months [news release]. Chicago, IL: American College of Surgeons; July 12, 2007.

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