Plan Now and Budget More for Clinical Health IT Applications

Based on its Electronic Medical Record Adoption Model (EMRAM), HIMSS Analytics evaluated self-reported data from 307 hospitals at various stages of EMR implementation

CHICAGO (October 28, 2008) –  New research based on the HIMSS Analytics Electronic Medical Record Adoption Model (EMRAM) suggest that costs rise throughout the EMR implementation process, especially at Stages 4 and 6 of the EMRAM scale. Summarized in the white paper, “Hospital IT Expenses and Budgets Related to Clinical Sophistication,” the findings provide another analytical dimension to the EMR Adoption Model, which identifies the levels of EMR capabilities ranging from the initial clinical data repository (CDR) environment through a paperless EMR environment.

“This evaluation of US hospital IT operating and capital expenses offers strategic planning and budgetary data for hospitals in the exploratory stage of implementing or advancing clinical applications for their EMR,” said Mike Davis, executive vice president, HIMSS Analytics.

As noted in the white paper, “The highest ratios are associated with Stage 4 and 6, which have the greatest impact on physician functions and workflows. Operating expenses may be higher for these stages relative to:

• The use of more consulting services to support planning and implementation of physician IT applications; and
• The need to hire clinicians into the IT environment to help support the physician use of their IT applications.”

According to the report, capital expenses for Stage 5 of the EMR Adoption Model most likely appear in earlier stages of the EMRAM with operating expenses at Stage 5  spread among the IT and clinical departments and services within the hospital. However, as the white paper states, this segment of the data is “speculative” since fewer than 5 percent of US hospitals have achieved EMRAM scores above Stage 4. 

“Each stage of EMR implementation represents an important phase for the hospital’s transition from paper to electronic patient records,” said Mr. Davis.  “Knowing what to expect in terms of IT capital and operating expenses at each stage can streamline the transition and enhance the EMR implementation process.” 

Access “Hospital IT Expenses and Budgets Related to Clinical Sophistication” on the HIMSS Analytics Web site at: http://www.himssanalytics.org/docs/HIT_expense_clinical_soph_102208.pdf.

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