Gaining a competitive edge through HIS technology - healthcare information systems - includes related information on costs

Healthcare Financial Management, June, 1991 by Richard C. Peterson, Kathryn M. Hanneman

In some cases, in-house modifications to existing software or equipment can bring long-term improvements-and the initial outlay of resources may be minor. In other situations, an organization must evaluate its need for a particular technology and calculate whether a new purchase will pay for itself, either directly or indirectly. Following are a few examples.

Electronic claims processing start-up expenses range from $100,000 to $200,000 for software, hardware, training, education, and communication. Payback can occur in 18 to 24 months, subject to the cooperation of third-party payers.

Executive infromation systems usually are priced from 150,000 to $350,000. Payback comes primarily through intangible benefits: improved access to key information for planning and operational decision making, for instance.

Medical records imaging, depending on size, volume, and function considerations, can cost from $250,000 to $3 million. Through work improvements, staffing reductions, and speeded cash flow, the technology's payback can occur in approximately two years.

Teleradiology expenses cover a broad range, fluctuating with the size of a system, its complexity, and resolution quality. A system carrying a price tag of $60,000 is used primarily for relaying X-rays between two sites and may store only three or four images. A more complex system can cost as much as $500,000 and will hold an archive of images, much like a hospital's X-ray film library.