Cardiovascular Business - May/June 2008 - (Page 14)

Money Matters › Purchase options abound for electronic Medical records electronic medical records (eMrs), which are rising in popularity of late, represent a hefty investment for most cardiology practices. It’s important for practices to use sound budgeting and financing processes as they invest in health It systems. Following are some pointers for practices in the market for an eMr from Joe rubinsztain, Ceo of gMed, a Westin, Fla.-based company specializing in digital solutions. Step 1: Calculate the impact of an EMR on cash flow. Factors to consider include reduced personnel and transcription costs. Step 2: Determine adoption costs. Costs should be divided into four categories: licenses, services such as technical support, infrastructure and lost productivity. Infrastructure costs and requirements, which include hardware and networking, can vary widely. a practice with a PaCs is likely to have a sufficient network infrastructure and a robust network. a single site practice may require new hardware, but its networking needs tend to be fairly straightforward. a large group with multiple sites, on the other hand, may require a larger investment in the network to ensure connectivity among all sites. Lost productivity, or the lower throughput, during the learning curve can be calculated with a basic formula, says rubinsztain. Calculate each physician’s productivity at 50 percent for the first two weeks following eMr deployment, 75 percent for the following two weeks and 100 percent after four weeks. Step 3: Weigh the pros and cons of various financing options: software donation, purchase and lease. Donations: Check the fine print new federal rules allow labs or hospitals to donate up to 85 percent of health It software and services to physicians if the practice receives Medicare payments. the fine print may discourage some practices. For starters, the rule does not cover hardware. In addition, donations are likely to include expectations, and the practice may not want to tie itself to a single provider. the donor relationship can become especially tricky Lost productivity during the learning curve can be calculated with a basic formula. Joe rubinsztain, CEO of gMed if the two parties cease their relationship. Finally, the practice should ask itself if it wants to share patient data with a hospital or lab via a common eMr. Purchase: New benefits Purchasing an eMr carries new advantages since the feds raised the rapid depreciation ceiling from $125,000 to $250,000 in 2007, which means practices can claim $250,000 in accelerated depreciation to reduce the tax burden and show improved earnings. on the downside, even a staggered payment schedule does impact the practice’s cash flow. Leasing options Practices can opt for a straight 48- or 60-month lease on an eMr or a lease with the option to buy the software at the end of the term. Payments are relatively low and even over the course of the lease, a practice can expense the software and infrastructure. on the other hand, leased eMrs are not eligible for rapid depreciation. 14 Cardiovascular Business May/June 2008

Table of Contents Feed for the Digital Edition of Cardiovascular Business - May/June 2008

Cardiovascular Business - May/June 2008 Contents First Word Cover Story - Coronary CTA: Drafting the Strategic Plan Financing New Technologies: Early Adopters, Lease vs. Purchase, and Joint Ventures Clinical Study Digest: ACE or ARB: It's Your Choice Can Off-Hour D2B Times Be Reduced Without Breaking the Bank? Digital Image Management Primer: Integrating Echo SPECT/CT for Cardiac Disease Detection: An Economic Conundrum Integrating the Healthcare Enterprise Connects IT Systems News & Views Calendar Reader's Resources The Back Page

Cardiovascular Business - May/June 2008

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