Electronic medical records reduce long-term costs, study finds

Medical practices that have implemented an electronic health records system have seen significant financial benefits, according to a recent report by the Medical Group Management Association.

The report, based on a survey of 1,324 medical practices, found independent practices reported an average of $49,916 more in medical revenue than practices still using paper records.

The same pattern was observed in hospitals and integrated delivery system-owned practices. According to the report, these practices using electronic health records reported an average operating margin of $42,042 more than those using paper records.

“The potential of improved financial performance should be an encouragement for many organizations to purchase and use an [electronic health records system],” said MGMA CEO William Jessee.

MGMA found there are still challenges for physicians to implement an EHR system that meets the Health Insurance Portability and Accountability Act guidelines. To protect medical records and expedite the transcription process, many healthcare providers use a digital voice recording device, such as those offered by American Dictation, to produce secure transcriptions and reduce documentation errors.

A statute in the American Recovery and Reinvestment Act mandates that every person have an electronic medical record by 2014. To meet this goal, the federal government will disburse nearly $20 billion as incentive payments to healthcare providers to implement electronic record systems, the Washington Post reports