Why Do Hospitals Installing an Epic EHR Start Losing Money?

I have blogged perviously about hospitals beginning to lose money after installing an Epic EHR (see: Some of the Details Behind the Maine Medical Center/Epic EHR Meltdown; Who Says a Hospital CIO Can't Get Fired for Picking the Epic EHR; The Cost of Deploying an Epic EMR and the "Oreo Cookie" Analogy). Often the details of these financial shortfalls are sketchy because of the contractual gag clauses imposed by Epic on their hospital clients (see: Gag Clauses in EHR Contracts Documented; Concerns Raised about Patient Safety). A recent opinion piece discusses how an Epic EHR installation at MD Anderson has triggered financial losses (see: Epic Install Triggers Loss At MD Anderson): Surprising pretty much no one, another healthcare organization has attributed adverse financial outcomes largely to its Epic installation. In this case, the complaining party is the University of Texas MD Anderson Cancer Center, which attributes its recent shortfall to both EMR costs and lower revenues. The news follows a long series of cost overruns, losses and budget crises by other healthcare providers implementing Epic of late. According to Becker’s Hospital CFO, MD Anderson reported adjusted income of $122.9 million during that period a 56.6% drop over the seven-month period ending March 31. During that period, the cancer center’s wages and salaries climbed, and Epic-related consulting costs were climbed as well. This follows a $9.9 million operati...
Source: Lab Soft News - Category: Laboratory Medicine Authors: Tags: Electronic Health Record (EHR) Healthcare Business Healthcare Delivery Healthcare Information Technology Hospital Executive Management Hospital Finance Source Type: blogs