Health care facilities and clinic owners have plenty of incentive to move to an electronic health records system, and it starts with the purchase of a suitable practice software system.

With the arrival of the American Recovery and Reinvestment Act, and the Health Information Technology for Economic and Clinical Health Act (HITECH Act), the transition to electronic health records has begun. Health care facilities and clinicians are starting to think about how to get in on the prize-namely, incentive payments to help offset the cost of implementing software systems.

In short, the HITECH Act states that by 2015, all physicians and health care facilities are required by the federal government to have electronic health records. Facilities will receive financial penalties if they don't make the switch.

Those who convert to electronic systems early are entitled to significant payment incentives that can stretch into the thousands of dollars. The HITECH Act sets a framework for federal policy and the use of stimulus funds to promote the design, development and operation of a nationwide health information technology and software infrastructure that allows for the electronic use and exchange of information.

The HITECH Act provides incentives under Medicare and Medicaid for hospitals and physicians with electronic health record systems in place. To receive the stimulus money, clinicians must show "meaningful use" of an EHR system.

Although the primary focus of the electronic health record issue is to benefit patients, health care facilities, private practices and clinicians can capitalize on various factors. Here is a partial list.

Maintain cash flow. Maintaining cash flow is critical in today's economy. Health care facilities that keep and use electronic health records can do a better job "coding" patient visits, which means streamlining electronic record keeping.

In addition, facilities can do a more accurate job of billing patients for services rendered to ensure profit isn't lost due to simple paperwork mistakes.

Preserve and store records. Software systems can store patient data more safely and for longer periods of time than paper health records. They also take up a fraction of the space and can be created, accessed and edited by multiple parties. Storage requirements will be determined by national and state regulations.

Conduct analyses. Many software systems can provide quicker, more extensive analysis of patient information, including potential prescription interactions, medical history and lab results.

Electronic records also allow multiple health care facilities and clinicians to share information on a patient, which prevents patients from soliciting identical prescriptions from several physicians.

Save time. With practice management software systems, clinicians and facilities save time in multiple ways. Digital medical records allow data and files to be transported electronically, which saves time and money. An electronic medical system also reduces the need to conduct exams and procedures multiple times, which can occur when records are lost or unavailable. Report-generating abilities and data-entering capabilities trim time and reduce human errors.

The Right Software System

The U.S. Department of Health and Human Services has partnered with the Certification Commission for Healthcare Information Technology (a private, nonprofit organization) to certify electronic health record programs that can perform basic functions such as checking for drug interactions, and creating and displaying problem lists.

When shopping for a software system for your hospital department or practice, be sure to run price comparisons. Costs can vary greatly, depending on the vendor. Some offer a flat fee, while others charge per computer or clinician. Ask potential vendors to come to your office and walk you through their systems.

Ask questions. Make sure you understand how each potential vendor determines pricing and how the price could go up if you change things in the future. Are routine updates free, or will you be charged? How about maintenance and troubleshooting?

Outsourcing

Building an in-house software system to maintain patient records isn't the only option for your practice. Facilities can turn to outsourcing, which can sometimes offer the best of both worlds-access to quality electronic equipment without the costs associated with purchasing and installing new systems. In fact, outsourcing can be a smooth transition to an electronic system.

Outsourcing can decrease operational and overhead costs while still allowing you to operate at the same level or better. Furthermore, outsourcing can allow you to recoup some of the money you've lost due to new restrictions in the industry, proposed budget cuts on Medicaid and Medicare, inefficient billing practices and the rising number of non-paying patients at health facilities.

Those who decide to outsource their transition to an electronic health record system can still receive the incentive payments outlined in the HITECH Act.

Regardless of the choice you make, going digital can be the time- and money-saver your practice needs, both now and in the future. 

Susan Chandler is president and managing partner of Twin Physician Services. Visit www.twinps.com.