Now, in the fast-moving healthcare scene, Electronic Health Record (EHR) software has become a must-have for healthcare providers to manage patient information, streamline clinical workflows, and deliver better care. If you need a quick brush-up on the concept of EHR, check this article on ‘What is an Electronic Health Record,’ and you won’t have difficulty relating to the terminologies we will discuss in this article.
No matter how much financial resources or organizational effort are involved, implementing an EHR system is a big investment. The fact that the Electronic- Records (EHR) market value worldwide in 2020 2027 will only boom means that it is the right time for healthcare organizations to understand and make budget-conscious decisions for EHR software development & deployment. This blog post aims to provide a clear breakdown of EHR software cost, from the initial development stage to the final implementation within a healthcare facility.
The purpose of this EHR software pricing guide is to provide healthcare professionals and administrators with the knowledge necessary to successfully plan, budget, and undertake a successful EHR software implementation project. So, let’s start.
EHR Development Costs Factors
In this section, we will explore the cost breakdown for EHR systems based on different factors:
Custom vs. Off-Shelf Solutions
When it comes to understanding EHR cost details, healthcare organizations have two primary options: ready-made, off-the-shelf solutions or custom-built systems. This choice between these two approaches greatly impacts the overall development costs.
EHR systems developed specifically for a healthcare organization are custom-built from the ground up to meet those organizations’ specific needs. While this may be more expensive initially, it provides a greater measure of customization and integration with existing systems and workflows. By comparison, custom EHR software allows for customization to suit particular clinical practices, regulatory needs, and organizational processes, leading to a more effective and easy-to-use system.
However, the cost to develop an EHR system (off-the-shelf, pre-built EHR solutions) is typically also cheaper to implement since you don’t need to develop them as much. Nevertheless, healthcare organizations may need to rework their existing processes and workflows to accommodate the capabilities of the off-the-shelf system, resulting in user adoption and long-term efficiency problems.
Features and Functionality
The more features and functionalities of an EHR system, the greater the EHR software cost. However, the overall cost of the software is raised by key features like patient data management, billing and invoicing, appointment scheduling, and clinical decision support.
Furthermore, the higher the development costs are, the more advanced and specialized the features are. Say that there is natural language processing for voice-to-text documentation or advanced analytics and predictive modelling capabilities that can significantly drive up the complexity and cost of the EHR system. In these cases, you shouldn’t anticipate affordable EHR software development costs.
Healthcare organizations need to take a very careful look at what they need and what is most important and then go with a balance between functional and cost-effective EHR software.
Compliance and Security
Ensuring compliance with relevant HIPAA healthcare regulations, such as the Health Insurance Portability and Accountability Act (HIPAA), is a crucial factor influencing EHR software development costs. To protect sensitive patient data, they must be designed with strict security and privacy standards in EHR systems. If you’re not so well-versed with HIPAA and want to learn more about this regulation, then check this blog on ‘What is HIPAA Compliance?’
Developing robust data encryption, access control mechanisms, and audit logging capabilities will significantly increase the EHR software development costs. Additionally, healthcare organizations may need to invest in ongoing security monitoring, vulnerability assessments, and regular software updates to maintain HIPAA compliance and mitigate the risk of data breaches.
Compliance and security costs are important to protect patient privacy and ensure healthcare organizations avoid costly fines and legal penalties for noncompliance.
Technology Stack
The technology stack used is one of the most important EHR software cost factors to be aware of. The programming language can influence the cost, the database management system, or the cloud-based or on-premise deployment model.
For instance, cloud-based EHR software cost may be more reasonable from a one-time infrastructure and IT support perspective. However, these systems also tend to have recurring subscription fees, which can add up over time. By contrast, on-premise EHR deployments might involve higher initial spending on hardware and infrastructure, but there may be more control and customization options.
For custom EHR software cost to be reasonable and sustainable, the technology stack selection must reflect the healthcare organization’s long-term goals, IT capabilities, and budget constraints.
Third-Party Integrations
When picking from the medical softwares list, consider the one that can interface with a wide range of third-party healthcare systems, including laboratory information systems, pharmacy platforms, or even medical imaging software. The costs associated with these integrations can significantly impact the overall EHR software development budget.
The costs can be driven up by factors such as the complexity of the integration, the number of systems required to be linked together, and the need for custom development work. Healthcare organizations must consider their current technology landscape and plan for how much of that will be integrated when developing EHR software.
Planning and partnering with EHR vendors and third-party providers can mitigate the cost of integrations and guarantee a seamless, end-to-end healthcare technology ecosystem.
Implementation Costs of EHR Software
Deployment Costs
When the EHR software is developed, healthcare organizations need to concentrate on deploying and implementing this software in their facilities. EHR software deployment costs include installing the software, configuring the system to satisfy particular organizational needs, and establishing a smooth transition from legacy systems to paper-based records.
The cost of building EHR software and deploying it depends on how large or complex the healthcare organization is, how many end users it has, and how much customization it requires, the deployment costs can vary. Moreover, the fact that you may have to invest in Healthcare CRM Implementation can also add up to the overall deployment cost. Deploying can be more expensive for larger healthcare systems with several locations.
Training and Onboarding
Healthcare staff needs to be trained and onboarded to ensure an optimized EHR implementation cost and ensure that the system is used effectively and the systems are adopted. However, this can be a long and expensive process, as it often involves in-person training sessions, online tutorials, and ongoing support.
So, healthcare organizations have to allocate resources for training programs — training materials development, trainers’ compensation, and employees’ time spent in training activities. Training and onboarding costs can be very expensive for complex EHR systems or when you have a large and diverse staff.
Data Migration
Patient data is often migrated from legacy systems, or even from paper, to a new EHR platform or medical record software. However, this is also a very time-consuming and costly process because you have to data map, cleanse, and validate the incoming data to ensure that the information being passed is accurate and that everything is in order.
Data migration costs can range from using IT professionals, developing custom data migration scripts, and even utilizing third-party data migration tools or services. Healthcare organizations should account for these costs, and time and resources should be allocated to guarantee a smooth, successful data migration process.
Hardware and Infrastructure
Additional hardware and infrastructure investments may be needed to implement an EHR system, such as servers, workstations, tablets, or other devices. There are no specific hardware requirements; rather, the requirements of specific hardware will depend on the EHR software architecture, the size of the healthcare organization, and the need for mobility or remote access.
Since the cloud provider handles the underlying infrastructure, a cloud-based EHR software cost may be cheaper upfront than traditional systems. Yet, healthcare organizations may still have to spend money on EHR system implementation costs, including end-user devices, network equipment, and even dedicated IT support.
Customization Post-Implementation
After initial deployment, healthcare organizations may also need to continue to spend money on customizing and optimizing the EHR system. It could be something as simple as changing the workflows, adding new features, or integrating new technologies to accommodate evolving needs or user feedback.
The custom EHR software maintenance costs after implementation can vary significantly by the complexity of the change and the degree of work required for development. To be long-term successful and happy EHR users, healthcare organizations should be prepared to allocate resources for continuous improvement and optimization of their EHR systems.
Hidden and Ongoing Costs
Maintenance and Support
After all, EHR systems constantly require ongoing maintenance and support for smooth and uninterrupted operation. However, these activities include software updates, bug fixes, system monitoring, and technical support for end users.
The EHR system can cost healthcare organizations in the budgeting for the cost of either annual software licensing fees, technical support contracts, or compensating in-house IT professionals or external service providers. The ongoing maintenance and support costs for this EHR software can soon start to add up, so these should be accounted for in the EHR software budget.
Compliance Updates
EHR systems or HIPAA compliance software solutions are perpetually being updated to maintain compliance with healthcare regulations such as HIPAA. As healthcare organizations strive to keep EHR software compliant with the latest regulations, this can lead to increased development and deployment costs.
Compliance updates cost, including the engagement of legal or regulatory experts, development of new software features or modifications, and testing and deployment of such updates across the organization.
Licensing Fees and Subscriptions
Healthcare organizations will be required to pay ongoing licensing fees or subscription-based costs based on the EHR software deployment model. EHR solutions may be deployed on-premise or on the cloud, and Cloud-based EHR systems tend to have a subscription or annual payment model. In contrast, on-premise solutions may be a one-time licensing fee or a perpetual license model.
In addition, the EHR software might also have its own licensing requirements, such as third-party software integration or add-ons within the EHR software.
Given the current trends of ever-increasing healthcare spending and the diminishing resources to meet that spending, healthcare organizations should carefully consider the long-term costs associated with various EHR software licensing and subscription models to select the best value for their resources.
NOTE: Now that you have a concrete idea of the EHR software cost in terms of development and deployment, you must be wondering what some of the pre-existing softwares that are huge in this industry. When you explore these softwares and their features, it becomes easier for you to know what features and functionalities you want in your own EHR system. So, check this blog on the ‘Top 10 Medical Software Used In Healthcare’ and get started.
EHR Implementation: Cost Saving Tips
Prioritize Must-have Features Over Optional Ones.
The core mission is critical, and the most pressing needs of a healthcare organization should be the focus when developing or implementing an EHR system. Organizations can avoid the temptation to use every feature that exists and can help keep within budget and more focused and efficient EHR deployment.
Healthcare organizations can save costs while developing their E-Prescription software, simplify the implementation process, and have a less bumpy user adoption by prioritizing must-have features and deferring the implementation of optional or less critical functionalities.
Consider Phased Implementation
Instead of going for a complete, well-all-at-once EHR implementation, healthcare organizations can take a phased approach. This means rolling out the EHR system in phases, first to key departments or functional areas and then slowly expanding the system to all parts of the organization.
By spreading out costs in time, a phased implementation can help healthcare organizations better handle their budgets and allocate resources more effectively. It also makes the transition a little more manageable, allowing end users to become used to the new system in a more gradual, controlled fashion.
Explore Open-Source Solutions
Custom-built or off-the-shelf EHR software can be expensive, but healthcare organizations may want to look into open-source EHR software as a cost-saving option. A good EHR system may be available as an open source. It can offer a robust set of features and functionality at a fraction of the cost compared to a proprietary system.
However, open-source EHR systems come with a trade-off — they may require more technical expertise for implementation and ongoing maintenance. However, Open-source EHR solutions may be a viable and cost-effective choice for healthcare organizations with in-house IT teams or access to a strong open-source community.
Take Advantage of Government Grants and Incentives
Governments and regulatory bodies offer financial incentives, grants, and reimbursement programs to promote the adoption of EHR systems and aid healthcare organizations in their process of digital transformation.
Healthcare leaders should research and use these available resources to offset the costs of Healthcare software development and implementation. For instance, the United States HITECH Act offered financial incentives for the use of certified EHR technology in a meaningful way, fostering widespread EHR adoption.
Exploring and using these government-sponsored initiatives can help reduce the financial burden of EHR implementation and facilitate a more cost-effective transition to digital healthcare.
Conclusion
With this guide, you now should have a good idea of ‘how much EHR software costs.’ To summarize, implementing an EHR system is a big investment for healthcare organizations, and it comes with huge costs, including the cost of initial software development maintenance and support. Healthcare leaders can become more acquainted with the various cost factors to come up with an accurate budget for EHR software that covers the upfront and long-term expenses.
This blog post has detailed the cost considerations for the EHR software development service and implementation process, from evaluating the costs of customization and feature selection to deployment, training, and compliance updates. Follow the cost-saving tips in this article. Healthcare organizations can make the best use of their EHR investments and successfully implement a cost-effective digital transformation in healthcare.
In fact, the success of an EHR implementation depends on a well-thought-out plan, allocation of budget, and partnering with experienced software development providers like CyanicLab. By working closely with EHR experts, healthcare organizations can navigate the complex landscape of EHR software costs and ensure their digital healthcare initiatives deliver maximum value and return on investment.
Frequently Asked Question
Q. What is the typical cost range for developing a custom EHR software solution?
A: Custom EHR development costs between $150,000 to $750,000, varying by features, security requirements, and integration needs.
Q. What are the main cost components involved in EHR implementation?
A: Key costs include software development, hardware infrastructure, staff training, data migration, system customization, and ongoing maintenance.
Q. How long does EHR implementation typically take, and how does this affect costs?
A: Implementation takes 6-18 months. Longer timelines increase project management, training, and technical support expenses.
Q. What ongoing costs should healthcare organizations expect after EHR implementation?
A: Annual maintenance, system updates, technical support, staff training, security updates, and cloud storage make up recurring costs.
Q. How can healthcare organizations optimize EHR implementation costs?
A: Conduct needs analysis, choose modular solutions, invest in training, use cloud services, and negotiate favourable vendor terms.