A Complete Analysis of the Cost of EHR Adoption in Healthcare

Key Takeaways

• Approximately, cost of EHR ranges from $15,000 to $70,000 per provider.
• Web-based EHR software is hosted by third-party vendors and they are in charge of maintaining and managing the EHR software. So, hardware, software, storage systems, and security expenses are nullified.
• On-site EHR is managed locally and in-house, without the involvement of third-party vendors. It is a great choice for large healthcare facilities that can store surplus data, maintain servers, and pay upfront costs.
• Cost of EHR support and maintenance includes automated updates for SaaS-based EHR and software and hardware license maintenance agreements.

EHR (Electronic Health Records) software has changed the way healthcare functions and it offers multiple benefits to both providers and patients. It ensures that caregivers and patients have access to medical records at any given time. It can be integrated with practice management software or patient portals for ease of use.

EHR implementation in the healthcare sector ensures positive patient outcomes as doctors can view complete medical history, preventing misinterpretations. Thereby, allowing doctors to provide accurate care.

Every EHR system differs according to features and functionality, and the cost of EHR varies according to it. Approximately, cost of EHR ranges from $15,000 to $70,000 per provider. The cost of EHR depends on numerous aspects, five of the key aspects are discussed in detail below.

Cost of EHR Adoption in Healthcare

1. SaaS or Web-Based EHR Deployment Costs

SaaS or web-based EHR software works across a shared pool of servers, healthcare systems, and devices. Healthcare providers and patients can easily access their healthcare data on their servers at any time. Web-based EHR software is hosted by third-party vendors and they are in charge of maintaining and managing the EHR software. It is a plausible option for healthcare providers and hospitals who cannot afford the high upfront costs of on-site EHR software.

With SaaS-based EHR, expenses such as hardware, software, storage systems, and security are nullified. The EHR software development and implementation companies take care of it all. So, providers and care facilities don’t necessarily have to pay for these expenses. The EHR development companies quote payment structures that cover all of the above expenses. Healthcare facilities can select a payment structure that suits them the best.

Additionally, facilities can also opt for a subscription-based payment option to use the EHR software. The low cost of EHR has increased its popularity amongst providers. Limited expenses ensure high ROI, a continuous revenue cycle, and swift financial growth. Healthcare organizations can make a note of the rising subscription prices or quotations based on the amount of data stored.

2. On-Site Cost of EHR

Unlike web-based EHR software, on-site EHR is managed locally and in-house, without the involvement of third-party vendors. It is a great choice for large healthcare facilities, with the capacity to store surplus data, maintain servers, pay upfront costs, and handle data security. The cost of EHR depends on hardware, software, storage, IT staff hired, and security needed to maintain the software.

Healthcare IT staff recruiting comes with a considerable amount of expenses. Currently, the cost per hire is around $4,700, and along with this, the employer has to include increments, medical, and other incentives. So, compared to web-based EHR on-site is expensive. Healthcare facilities have to pay for installation, software licenses, firewalls, and software updates.

3. Training Costs

Varying aspects involved in EHR training make it difficult to get a precise price for it. Aspects influencing the cost of EHR training are:

• Travel expenses of trainers. If transport service prices go up, so will the training budget.
• Every vendor offers different training packages, for example, a comprehensive cost covering all training factors or packages as per EHR software type.
• Downtime and overtime also manipulate the training expenses of EHR.

Consider breaking down the cost of EHR training as per the aspects mentioned above to get a clear idea of the budget.

4. Support and Maintenance Costs

Support and maintenance of EHR ensure that healthcare organizations aren’t falling behind in care outcomes and patient treatment. In case there’s a slight fluctuation in the performance of organizations, then it is time to recheck the EHR software. EHR support and maintenance costs include automated updates for SaaS-based EHR and software and hardware license maintenance agreements. It also includes telecom fees, IT support fees, and staff education on how to maintain EHR.

Additionally, the cost of EHR maintenance also depends on hiring staff for IT operations, application analysis, and data security. Apart from maintenance, healthcare facilities must pay close attention to other EHR aspects that may help in obtaining the best ROI. These include EHR interoperability, patient engagement, data accuracy, and user satisfaction.

5. Cost of EHR Software Development

On an average the cost of EHR software development ranges between $75,000 to $350,000. The cost range is quite broad because of the various aspects involved in the development process. The EHR software development process involves at least six to seven steps, starting with MVP development and goes all the way to maintenance after its launch. The range can vary if healthcare organizations are in the need for customized EHR software. A customized software in created as per client’s specifications about features and functionalities, thereby the cost maybe higher.

Apart from this, cost of EHR software development depends on the type of development team hired. For instance, an in-house team will cost you more money compared to an outsourced one. To run an in-house team, a company has to handle payrolls, employee benefits, medicals, etc., which is not needed for an outsourced team. Arkenea offers healthcare IT staffing solutions for all those who are looking to outsource their projects.

6. Hardware and Software Costs

The cost of EHR hardware is approximately $25,00 to $35,290 and that of software is around $85,00 through the first year. EHR implementation companies offer various options to meet the standards and needs of providers. That’s why the cost of hardware and software keeps on fluctuating.

For on-site EHR software, costs depend on servers, hosting, data storage, and installations. On the other hand, providers don’t have to worry about the hosting or data storage expenses for a SaaS-based EHR system.

Hardware purchases are needed for on-premise software, thus there’s a need for significant upfront costs. But these expenses are nullified for SaaS-based EHR software as a third-party vendor takes care of the networking and computers.

If you’re looking for third-party vendors to host your EHR software, contact Arkenea, a leading healthcare software development company. Our offerings include EHR software development and implementation, third-party integrations, and customized healthcare software development to name a few. We will provide you with the best plausible solution that meets your needs and standards.