Total Cost of Ownership of EHR Systems

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What do you get when government regulators hold a big stick and dangle the proverbial carrot at the same time? The American Recovery and Reinvestment Act (ARRA). With more than $30 billion in financial incentives and equally painful penalties associated with the implementation of electronic health records (EHR), healthcare systems have found themselves in the awkward position of investing heavily in a new process that has been a “figure it out as you go” activity.

We collaborated with hospital CFOs to develop a solution that empowers them to project out the Total Cost of Ownership (TCO) of implementing one vendor EHR platform over another.

TCO-EHR Graph 1

 

 

 Direct hospital CFO collaboration

We worked directly with hospital CFOs to design a TCO model that includes all necessary features to make accurate projections.

The Total Cost of Ownership model

The peer60 TCO model projected the costs of individual EHR components including: staffing, security and infrastructure.

Cost differentiation among EHR solutions

Just as the major EHR solutions have varying features and benefits, they also have different implementation (current) and maintenance (future) costs. The TCO model shows which EHR solution provides the total package from a cost perspective.