Funding Your EMR: How to Get the Money You Need

Headnote

Many practices today are considering the purchase of an electronic medical record (EMR) system. "When should we get one? Are we ready for this type of technology in our practice? How will the physicians feel about it? How about the staff? How will it change our work flow? And most of all, who is going to pay for it?" are common questions that arise. In fact, funding the EMR is the number one reason most practices delay the decision to move forward with this type of technology in the office.

Key words: Electronic medical record; EMR; electronic health record; EHR; personal health record; PHR; Administration on Aging; Agency for Healthcare Research and Quality; Health Research and Services Administration; National Institutes of Health.

Today's marketplace has come to expect some outside funding support to promote electronic medical record (EMR) adoption. In this article, we'll explore some of these options.

GOVERNMENT

The government has made funding available through a variety of sources. Seed money or subsidies awarded for start-up projects has been available for EMR adoption in many areas across the country. For instance, the Agency for Healthcare Research and Quality (AHRQ) distributed $29.5 million in 2007. The Federal Communications Commission (FCC) awarded $60 million, while the United States Department of Agriculture gave $120 million to organizations implementing an EMR system.

Some legislative activity has also occurred that will help in concept more than actuality. The government has also authorized the Quality Improvement Organizations (QIOs) to provide services at no cost and is committed to the development of Regional Health Information Organizations and Health Information Exchanges.

THE INSURANCE INDUSTRY

The insurance industry has begun to see EMRs as an effective tool for pay for performance. There is value in e-prescribing as a tool to reduce errors and unnecessary costs. Insurers also consider the utilization of EMRs as a possible way to save administrative costs.

Some insurers will offer incentive payments to participating physicians for utilizing e-prescribing software, purchasing EMR software, and/or implementing an EMR system throughout their offices. In addition, through an EMR system, practices can track outcomes and better manage patients with chronic conditions.

THE PHARMACEUTICAL INDUSTRY

The pharmaceutical industry views EMRs as a way to increase the number of clinical investigators in the field...