‘Return on investment of digitization’ is a common approach to measure rates of return on money invested in terms of increased profit attributable to the investment. Electronic Health Records [EHR] is a process enabling information technology, that offers the opportunity to streamline information intensive workflow, remove manual hand-off, to data and information, facilitate coordination —thus facilitating the execution of ‘Entire System’ rather than individual tasks.
Realizing the Value of Digital Investments –- Taking Technology Investments from Vision to Value!!!
Adopting emerging technologies, open the doors to transformed business models and new experiences and products in Healthcare.
Importance of measuring the ‘Return on Investment’ [ROI]
Traditionally we think of ROI, as the amount of money gains on any investment, in simple terms. But there is a certain way to do it.
Well then, Where is the Breakeven Point? The breakeven point of an Electronic Health Record- is the number of months it takes a clinic/hospital to recover the cost of the EHR system and other associated implementation costs with increased revenues and /or decreased expenses. Increases in revenue or decreases in expenses are expressed by considering net revenues during—
‘Three distinct Periods of Time’, which are…
Pre-EHR Period – is the full fiscal year before the implementation of an EHR [Electronic Health System] started.
Peri- EHR Period – is the fiscal year [s] containing the EHR implementation period.
Post -EHR Period—is the full fiscal year following the end of the Peri EHR Period.
The Key to Reaping ‘Electronic Health Records Investment Gains’ – Optimize at the right place!!!
Spending excessively on an EHR System ranks high among the largest software and IT infrastructure purchases, hospitals make. But to date, earning a return on that, has been somewhat elusive, causing industry wide-frustration, with what was expected and what, actually materialized in terms of results.
*Therefore, the Takeaway here is that— hospitals and the staff who run the show, should expect performance- related gains from investment of EHR adoption, to take time. Those gains can be augmented when coupled with robust digital support and EHR enabled quality improvement efforts. This should tell how many functions are adopted at first and how many are added each year and the expectations that are reasonable to have, for causing results along the way.
It is also crucial to make sure you are constantly improving and reaping out of the Investment and not viewing the EHR adoption as a one- time thing. It’s really a tool that makes us think about the system in the hospital and the need to continue to improve EHR and deliver care. Don’t shy away from continuing to optimize what you have and march towards full digitization. But remember, it’s not the technology that is going to do it but it’s the organization, that must figure out how to use the technology in a beneficial way.
Gain more value with Digitization
The use of Electronic Health Records in clinical settings, are considered pivotal to a patient centered healthcare delivery system. However, uncertainly in cost recovery from EHR Investments, still remains of significant concern in primary care practices. Digitization in clinical settings is widely recommended as an innovation enabler with potential benefits of reducing healthcare costs, while improving quality and safety and is considered central to achieving patient —centered healthcare.
While digitization health investment can seem risky, the rewards will follow, if Healthcare Organizations, take a conscientious approach to measuring ROI.
Connect with our expert- Medtech today, at www.medtechglobal.com/ind/ to find out how we can support you in focusing on ‘Returns on Investment’.