ROI Analysis


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Check out these REAL and CONSERVATIVE numbers. They are SHOCKING but a bitter reality!

ROI

1. Integrated Practice Management & EMR Adoption
Reduced Operational Cost (Medical Economics)+ $42,000
Reduced Revenue loss, due to under coding (AAFP)+ $36,000
2. Increased Billing Efficiency
Higher reimbursement (2.5% cash flow improvement)+ $10,000
3. ROI in $
+ $91,000
Improved soft values

  • Improved RCM & Cash Flow Management
  • Improved Clinical Documentation Excellence
  • Improved Patient Outcomes
  • Reduced Malpractice Risk
  • Reduced Exposure to Payer Audits

Measuring The Cost of Not Changing – Paper vs. Electronic.

Reduced Operational Cost (Medical Economics)

$42,000
Eliminate paper cost
$42,000
Enormous economic benefits can be realized by converting a paper-based medical office to a fully integrated Practice Management & Electronic Health Record System

Medical Economics estimates management of paper trail in a private practice to be about $9 per patient chart per year compared to an office using a fully integrated system to be about $2 per chart per year records

A. Cost of managing paper charts$9 per chart
B. Cost of managing electronic charts$2 per chart
C. Savings per chart ( A – B)$7 per chart
D. Average patient visits per day25 visits
E. Total patient visits per Month (D x 20 w/days)500 visits
F. Total patient visits per Year (E x 12 Months)6000 visits
G. Cost of managing active charts per Year
( C x F )
$42,000
A paper based Record System requires extensive paper cost
(Charts, folders, dividers, super-bills, fax papers, printer pages, toner/ cartridge, envelopes & postage)
A. Paper Products
(Charts, folders, dividers, super-bills, fax papers, printer pages, toner/ cartridge, envelopes & postage)
$300
B. Cost using Electronic Health Record with integrated Practice Management System$100
C. Savings per Month ( A – B )$200
D. Savings per Year ( C x 12 Months )$2400
Not accounted in this is the valuable time and energy spent managing the paper chaos!!!
Saving in storage of paper based charts, Medical Records Room, external storage for old records. 

Storage costs of maintaining paper based charts

A. Med Record Room
(250 square. feet x $2.00 rent per square feet)
$500
B. Cost of external storage of old charts generally retained for 7 years$250
C. You would still need some paper storage in a paper-less office
(50 square. feet x $2.00 rent per square feet)
$100
D. Total savings in paper storage cost per months ( (A + B) – C )$650
E. Total savings in paper storage cost per Year ( D x 12 Months )$7800
Paper based medical records require charts pull and storage during patient office visits, RX refill request, hospital request, specialist referrals / submitting reports to referring physicians, insurance audit and others.
A. Average number of charts pulled per day
( visits, refills, labs results, specialist referrals / submitting reports / answering question for referring physicians) 25 patient visits + 5 (refills labs and others)
30 charts pulled per day
B. Estimated time spent for chart pull from the record room & putting the chart in the exam room / doctors office1 Minute
C. Estimated time spent to restore the chart back to the record room chart1 Minute
D. Estimated time required in an office using Electronic Health Record30 seconds
E. Minutes lost per chart (B+C-D)1.5 Minutes
F. Minutes lost per Day ( E x A)45 Minutes
G. Minutes lost per Week ( F x 5 working days )225 Minutes
H. Minutes lost per Month ( F x 20 days working days)900 Minutes
I. Lost minutes in hours per Month ( H / 60 Minutes)15 Hours
J. Average wages of medical & office staff$15 an hour
K. Loss per Month ( I x J)$225
L. Loss per Year ( K x 12 Months)$2700

Revenue loss due to under coding (AAFP)

$36,000

Revenue loss due to under coding$35,000

AAFP & Medical economics estimates $35,000 of annual revenue loss to doctors who routinely down-code level of visit due to inadequate documentation required to justify documentation level.

Most visits are coded more on deficiencies in documentation than on the medical necessity, risk factor & other criteria of the visits and are generally done due to fear of insurance audit. Using PracticeSuite’s EMR enables rapid, extensive documentation of visits, making it possible to properly & adequately document level of services to justify the appropriate coding level.

Practices using EMR noted increased reimbursement and savings in supporting insurance audit documentation and having the peace of mind that you have documentation to substantiate your level of coding.

Using PracticeSuite’s consultation sheet, canned sheet and copy of follow-up visits enables doctors to capture depth of HPI, History, negative ROS and PE very quickly using canned sheets. PracticeSuite gives you the flexibility to either dictate, handwrite or click and type. Using all these varied forms of data entry, clinical documentation can be easily completed within 2 to 4 minutes depending upon the nature and complexity of the visit.

PracticeSuite E&M Coder validates visits to ensure documentation meets the coding level requirements

A. Average patients visits per day25 visits
B. Approx visits under coded per day10 visits
C. Approx visits under coded per month
( B x 20 working days)
200 visits
D. Approx visits under coded per year
( C x 12 months)
2400 visits
E. Revenue loss to due under coding
(Estimated difference between two levels of coding)
$15 per visit
F. Revenue loss per year ( D x E )$36,000

Billing Service

Higher reimbursement (2.5% cash flow improvement) $10,000

Higher re-imbursement ( 2.5% cash flow improvement)

Estimated improved re-imbursement due to proper coding, LMPR, CCI, Local edits, RVU values order etc


* Information deemed reliable but not guaranteed. | * Above estimate is for a one doctor practice.

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