How an EHR Can Increase a Medical Practice’s Revenue

Electronic health recordsoftware has many advantages for medical practices, not the least of which is its ability to increase revenue, which it does in many different ways.

For example, EHR software enables physicians to ensure all billing charges are captured for the services they perform. With paper charts, often services performed fall through the cracks, such as an E&M code being left out. But EHR software can increase revenue by helping to capture charges for all of the services completed by the physician. In one case, a physician increased revenue by $3,000 per month because of the automated charge capture of the EHR. Reference Source Cited?

Often with paper charts, physicians will use a lower billing code to make sure they won’t get audited. But with the EHR, E&M billing codes are assigned based on the electronic system recommendations, and are anchored to the service that has been accurately documented in the EHR. There is no concern about being audited with the EHR.

The software of the EHR also enables physicians to compile accurate supporting documentation that fits in with CMS guidelines and supports the appropriate level of service that is being billed. Because the EHR helps to produce accurate coding, fewer claims are rejected by the insurance companies.

EHRsoftware also help increase revenue by increasing the productivity of the physician. With the EHR, progress notes are generated automatically, and they can be signed electronically from any location where the physician has access to the network. This saves time that can be used to see more patients. Moreover, since the EHR does not require any storage space as with paper records, the storage space can conceivably be converted to consulting rooms, which would also help to generate more revenue.

EHRsoftware also help increase revenue by lowering administrative costs. Using paper records, many medical offices have a transcriptionist, appointment scheduling staff, medical billing services, collectors, and file clerks. An EHR significantly reduces the need for many of these positions, because many of these functions are handled electronically. Furthermore, without paper charts to pull or file, personnel are no longer needed for these functions, which also saves time.

Using electronic health records also reduces transcription costs because charts are created electronically when the patients are seen. Physicians usually pay a good deal of money for medical transcription services. According to Medical Economics, physicians spend between $15,000 and $25,000 a year for transcription services. But the EHR eliminates the need to use transcription services.

Using electronic health records software also eliminates the costs required to store paper records. There will no longer be any need to buy, copy, manage, store, or destroy paper charts. And the space needed for storage can also be converted to other uses. Some estimates put the cost of maintaining a paper chart at $3 per chart.

One study showed that a practice consisting of 12 physicians saved $5,000 a year in storage costs after it changed to an EHR. Another report estimates that a major medical center in Boston, which sees about 750.000 patients a year, will save about $6 million a year resulting from a change to EHRs.

Moreover, the time spent to pull paper records costs a medical practice money. Electronic records can be accessed instantly with the push of a button or the click of a mouse, enabling you to combine state-of-the-technology along with the human, caring touch of your practice’s staff members to make your patients’ healthcare experiences with you as pleasant – as well as accurate and efficient – as possible.