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KMID : 0603720130190030205
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Journal of Korean Society of Medical Informatics
2013 Volume.19 No. 3 p.205 ~ p.214
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Cost-Benefit Analysis of Electronic Medical Record System at a Tertiary Care Hospital
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Choi Jong-Soo
Lee Woo-Baik
Rhee Poong-Lyul
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Abstract
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Objectives: Although Electronic Medical Record (EMR) systems provide various benefi ts, there are both advantages and disadvantages regarding its cost-eff ectiveness. Th is study analyzed the economic eff ects of EMR systems using a cost-benefi t analysis based on the diff erential costs of managerial accounting. Methods: Samsung Medical Center (SMC) is a general hos-pital in Korea that developed an EMR system for outpatients from 2006 to 2008. Th is study measured the total costs and ben-efi ts during an 8-year period aft er EMR adoption. Th e costs include the system costs of building the EMR and the costs in-curred in smoothing its adoption. Th e benefi ts included cost reductions aft er its adoption and additional revenues from both remodeling of paper-chart storage areas and medical transcriptionists’ contribution. Th e measured amounts were discounted by SMC’s expected interest rate to calculate the net present value (NPV), benefi t-cost ratio (BCR), and discounted payback period (DPP). Results: During the analysis period, the cumulative NPV and the BCR were US$3,617 thousand and 1.23, respectively. Th e DPP was about 6.18 years. Conclusions: Although the adoption of an EMR resulted in overall growth in administrative costs, it is cost-eff ective since the cumulative NPV was positive. Th e positive NPV was attributed to both cost reductions and additional revenues. EMR adoption is not so attractive to management in that the DPP is longer than 5 years at 6.18 and the BCR is near 1 at 1.23. However, an EMR is a worthwhile investment, seeing that this study did not include any qualitative benefi ts and that the paper-chart system was cost-centric.
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KEYWORD
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Electronic Medical Record, Cost-Benefi t Analysis, Benefi t-Cost Ratio, Net Present Value, Payback Period
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