Last Updated | February 6, 2024
Executive Summary: EHR Implementation Cost Breakdown
Remember the time when you carried a pile of previous medical reports and prescriptions to every hospital visit? Technology has revolutionized our way of living, and paper chaos is over. Whenever a healthcare provider talks about implementing Electronic health records (EHR). The first question is, how much does an EHR cost? EHR software has recently become customary and transformed how care providers conduct patient care.
Implementing best EHR for solo practices or hospital chains isn’t too complicated. However, the cost is a factor that can often be a roadblock. EHR implementation costs can be divided into parts based on the vendor’s needs. Many practitioners believe EHR is a one-time investment, but we’ve revealed the reality through logistical breakdowns and expenses you might not have expected.
EHR Implementation Cost Breakdown: The Software
The software is the brain of your EHR that will be managing all the chaos for you. The goals of streamlined workflows, a boost in efficiency, and improved patient care can be achieved only by picking out the best software.
There are multiple EHRs available. Vendors of Cerner, EPIC, eClinicalWorks, Allscripts, etc., offer design options to meet the practice’s unique needs. For example, a practitioner may need alternative EHR customization such as primary care practices, specialists, or Ambulatory Surgical Centers (ASCs).
Licensing Models
For software, there are two different EHR pricing models. EHR systems for hospitals are based on several factors, choosing the most suitable for their needs and what fits their budget for the cost.
Per-User Fees
Revenue for this model is paid each time an authorized user is registered and consists of either a monthly or a yearly subscription fee. It predictably scales with the size of your practice.
Per-Facility Fees
In this case, you pay a fixed amount for the entire structure, but it does not matter how many people there are. This could be cheaper overall for bigger practices but may not allow much flexibility for smaller ones.
EHR Implementation Cost Breakdown: The Hardware
Your practice must also acquire the computer, server, and networking gadget needed to access and utilize your EHR software. Your choice determines whether or not you are to develop a secured server on which EHR software will be stored along with the data.
Alternatively, A hospital can connect with the EHR provider or a separate hosting provider to host and store your data if you opt for a cloud-based model. Choosing the cloud will reduce the initial investment in data hardware.
This suggests that off-premises systems require more initial investment in infrastructure due to EHR deployment. Cloud-based or SaaS systems require lower software and hardware infrastructure investments since your data is held at the vendor’s servers and accessed via a web browser.
You should also evaluate your computing and networking adequacy for any EHR system. The major causes of poor EHR performance are slow computers and laptops, poor Internet connections, and network infrastructure issues. New equipment has to be purchased, depending on the compatibility level with the new EHR.
EHR Implementation Cost Breakdown: Implementation Support
Several operations rely on support from various professionals to implement an EHR system. These include project managers, trainers, analysts, consultants, and programmers. The hospital might need help from an external party like Digital health Folio3 that can assist with all aspects of the project, such as plan development, customization, ergonomic considerations, workflow redesign, training, and customer support.
With expert implementation support, your EHR system can work faster and save you money in the long run. The pricing of implementation support depends on the desired level of assistance. Integration aid also helps in adopting quality practices and ensures successful EHR application.
Implementing EHR comes with its own set of costs, and implementation support plays a significant role in the overall budget. Healthcare organizations can expect to spend 15-20% of their EHR implementation budget on support services. Medical Group Management Association revealed the average per-hour costs for EHR as follows:
- Project management: $100-$200 per hour
- System configuration: $150-$300 per hour
- Data migration: $50-$200 per patient record
- Training: $50-$150 per hour per trainee
- Go-live support: $200-$500 per hour
EHR Implementation Cost Breakdown: Training
Healthcare professionals are not proficient in computer systems, and Implementing a new system necessitates training all medical personnel, including management, doctors, and care providers. This can be an expensive process
EHR Implementation Cost Breakdown: Ongoing Costs
Implementing an EHR system involves the initial purchase, setup, and ongoing costs that must be factored into your budget. Here’s a breakdown of the main ongoing costs you can expect.
1. Direct Cost
Implementing an EHR system for a multi-physician practice can be costly, with initial setup around $162,000 and first-year maintenance at $85,000. However, The system can pay for itself within two and a half years.
Costs vary depending on the chosen EHR and deployment method (cloud vs. on-premise). And regardless of your approach, additional significant investments may be needed.
2. Indirect Cost
Indirect costs in EHR take up a considerable part of the cost of implementing EHR in hospitals and increase the number estimated significantly. One significant cost is EHR training. Equipping your staff and physicians with proper training might seem expensive initially. But, Inadequate training can lead to decreased efficiency, errors, and frustration, ultimately hindering productivity.
Implementing a new system like an EHR inevitably comes with an adjustment period. It’s natural for your physicians’ productivity to decline slightly. EHR vendors schedule regular maintenance downtime; unplanned outages can occur, sometimes without prior warning. These disruptions can cause major inconveniences.
3. Staffing-Related Cost
The expectations from EHR are higher; thus, trained and efficient staff is mandatory to keep the system up and running. EHR support will eventually reduce operational costs in the long run by automating repetitive tasks. On the other hand, cloud-based providers generally provide their support staff and need no additional staff.
4. Unexpected Costs
It is essential to consider that unforeseen costs associated with the deployment of your EHR could come up. Analyze potential challenges and analyze your circumstances accordingly. Although implementation costs are impossible to predict, keeping these points in mind may help you avoid unanticipated costs after your purchase.
Custom EHR Costs
Every practice has some unique set of requirements. For example, a hospital offers remote patient monitoring or telehealth solutions or uses medical billing software; in this case, the integration would add to the base cost. Opting for general EHR without customization can rely on an available solution.
A custom EHR software for mental health could be more appropriate has it’s own unique sets of features needed by therapists like multiple assessments and evaluations for specific type of issue. In the same way EHR in nursing practice, pediatricians, surgeons, hospices, and other practices with a limited specialty require features more relevant to them for better patient care. Although a custom EHR may seem expensive initially, it’s a terrific method to avoid spending money over time.
EHR Cost Compilation
Electronic health records cost breakdown often leads to the answer depending on the features and other functionalities. The expense of an EHR varies based on the components purchased and the intended duration of use. This blog provides insights into how an EHR system is financed and the costs incurred during implementation.
1. Medium of Deployment- Cloud or On-Premises
EHR software can be deployed in the cloud or on the premises. Both mediums have their own unique set of features and advantages. Using a Cloud-based medium for your data allows applications to be hosted in the vendor’s secure cloud environment. This eliminates the need for on-site IT infrastructure and offers greater scalability and accessibility.
On the other hand, by utilizing on-premise installation for EHR software, hospitals can install and manage the software on their servers. This gives you more control over your data but requires significant upfront investment in hardware and IT expertise. Cloud-based deployments typically have lower upfront costs but ongoing subscription fees, while on-premise deployments have higher upfront costs but lower ongoing fees.
2. Cost of Top-Notch EHR
It is difficult to pinpoint an average cost for EHR implementation because the costs differ based on the specific setting and plan. Specific cases give an understanding of implementation costs. One report published in the journal Health Affairs. for example, highlighted the typical amount of money multi-physician practices spend on EHR setup and maintenance. In the same way, primary care offices’ spending on gadgets, software, hardware, and support services was pointed out in Medical Economics research. Due to their greater scope, hospital EHR implementation expenses fluctuate widely throughout community hospitals.
3. Hidden Costs
Licensing is only the tip of the iceberg. Implementing EHR in your practice comes with several hidden costs, which often get overlooked when calculating the cost of implementing EHR in the hospital.
Implementation Fees
These include the initial installation and configuration of your EHR system, where some aspects, such as data migration, are involved.
Training Fees
When introducing a new system, your staff learns it well. Training costs can be either per user or they can come as part of the implementation package.
Customization Costs
Want to make adjustments to EHR in accordance with your unique workflow? Be aware of other personalization expenses.
Integration Fees
Connecting your EHR with other systems, for instance, labs or billing software, is costly because of integration.
Maintenance Fees
EHRs are software; thus, they must be constantly maintained and upgraded. This cost provides you with new features and bug configuration.
Costs of Popular EHRs
Electronic health records implementation cost breakdown has a variety of associated costs. One of the frequently asked questions is how much epic ehr costs. Based on the popularity of epic EHR. There are numerous EHR software available, such as over-the-counter and customization.
The cost of top 5 EHR systems varies depending on several factors such as Practice size and specialty, 96% of practices use any type of EHR software. Specialists often require more features and customization, leading to higher costs; cloud-based solutions are typically less expensive upfront than on-premise systems but may have ongoing subscription fees. Different vendors have different pricing models and feature sets. However, here’s a general overview of the costs associated with some popular EHRs.
| EHR System | Pricing Model | Typical Cost per User/Month |
| Athenahealth | Subscription | $150-$300 |
| Meditech | Perpetual license or subscription | $200-$500 |
| Cerner | Subscription | $300-$700 |
| Epic | Subscription | $400-$800 |
| eClinical | Subscription | $449-$599 |
How to Control Costs of EHR
EHR Development plan for a healthcare organization revolves around cost and benefit analysis and emphasizes cost control. Although EHR systems offer multiple benefits, evidence has shown that organizations tend to recoup their implementation costs after two to three years.
Healthcare providers highlight budget constraints as a hindering factor for the digitalization of healthcare. To control the cost, doctors involved with implementation poured in suggestions. These will also help minimize the cost of EHR for private practice and large hospitals.
1. Installing Open-Source EHR
Utilizing an open-source EHR system might result in a user interface that is not perfectly buffed. However, it is capable of delivering essential functionalities at minimal or no cost at all. Sometimes, healthcare organizations lack IT expertise to use open-source implementation or need additional features. Hiring a developer could be a more economical alternative than selecting a proprietary EHR solution.
2. Select Only The Required Features
Before making the decision, it is essential to do a market analysis to grasp the cost breakdown of electronic health records. This helps in the identification of important functions a healthcare organization would need to run smoothly. Opting for features and integrations is the right approach to avoid unnecessary costs. This approach helps optimize costs, ensures a suitable EHR solution is chosen, and provides the option of scaling over time.
3. No Compromise On Security
Medical data is sensitive, and security must be given top priority by healthcare companies when evaluating cost-cutting strategies for EHR deployment. In the healthcare industry, data breaches are common and often expensive. Choosing an inexpensive system with inadequate security features can lead to costs significantly greater than those incurred by purchasing a more trustworthy and premium solution.
4. Pick A Subscription-Based Model
Solutions that facilitate annual subscription payments could be a good solution for healthcare organizations concerned about upfront costs. This strategy offers flexibility even if it may result in a higher total cost of ownership. This allows companies to change or modify their service plans as needed, allowing the budget to account for unanticipated expenses and allowing for adjustment.
5. Collaborate With An Experienced Vendor
Experienced software companies like Digital Health aim to demonstrate their efficiency in implementing EHR optimally. As a result, they can help healthcare organizations optimize costs by identifying areas that require attention. These companies provide skilled teams that expedite implementation, leading to reduced project costs and prompt utilization of system benefits. This approach is crucial to maximize cost-effectiveness and fully leverage the benefits of the EHR system.
Final Thoughts
To sum up, adopting electronic health records (EHR) is a complex and revolutionary procedure that involves numerous expenses. Since the software functions as the focal point, vendors, customization requirements, and licensing models must all be carefully considered. Whether on-premises or cloud-based, hardware selections greatly influence upfront costs. Implementation support accounts for 15-20% of the total budget and involves a variety of professions. Implementing EHR is assumed to be financially challenging for healthcare providers.
Its long-term advantages create the opportunity for significant healthcare cost savings. Electronic Health Records (EHRs) facilitate data-driven decision-making, reduce errors, better care coordination, accelerate claims processing, and automate administrative activities. This results in reduced costs associated with paperwork, fewer unnecessary tests, better treatment plans, quicker reimbursements, and the real-time insights-based implementation of resources.
Healthcare organizations aiming to boost patient care and maintain their financial stability should consider implementing Electronic Health Records (EHRs) as a strategic decision, given the potential long-term cost savings and efficiency advantages.
Frequently Asked Questions
How much does EHR cost per year?
The EHR cost per user ranges from $900-1200 annually, but pricing models vary.
Are there different pricing models for EHR systems?
Yes, there is a subscription model; other models are per-user and per-feature.
What are the components that contribute to EHR costs?
Besides the software, training, support, hardware, customization, etc, contribute to the overall cost.
Do EHR costs vary based on the size of the healthcare facility?
Depending on the size of the facility and features, the cost of EHR varies from case to case.
What is the EHR cost for small practices?
Small practices with general features spend from $40,000 to $100,000 annually on EHR.
How much does it cost to implement an EHR system?
EHR implementation can range from $50,000 for smaller setups to millions for complex hospital systems.
How much does it cost a hospital to implement an EHR?
The cost of EHR implementation can go up to Millions for a large hospital (variable based on size and complexity)
How much does EHR maintenance cost?
Maintenance costs are also significant, estimated at $1200 – $1500 per physician per month.
What is the cost of a top EMR/EHR software implementation?
The cost involved in EHR implementation is variable based on features, software, and other aspects.
How long does it take to implement an EHR system?
Implementing EHR has several factors, like integration with other systems or migration from legacy software, which can take anywhere between 3-12 months.
How can we reduce the cost of EHR?
Controlling EHR cost through negotiation, open-source options, and optimizing usage as needed.
Why does EHR cost so much?
The high price reflects the complex development, security needs, regulations, and ongoing updates required for these crucial systems.
About the Author
Afnan Ali
Afnan Ali is a digital marketing professional with over 5 years of experience. Afnan's expertise lies in crafting comprehensive digital marketing strategies, with a strong foundation in SEO (Search Engine Optimization) as the core. His experience spans various digital marketing channels, including PPC (Pay-Per-Click) advertising, email marketing, Account-Based Marketing (ABM), and social media marketing (SMM). This well-rounded skillset allows Afnan to develop and execute data-driven campaigns that achieve measurable results.
