A Cost-Benefit Analysis of Electronic Medical Records in Primary Care
Cost & Economic Analysis
Kaira Ellis
Maribel M. Howell

Electronic medical record (EMR) systems are used to improve quality of care while increasing efficiency. However, there is little classified evidence regarding the benefits and costs of EMRs’. It is believed that by implementing an EMR system, there will be a significant increase in the facilitation of work flow and quality of patient care and safety (Bardon et al., 2003). The Cost-Benefit Analysis of Electronic Medical Records is conducted to estimate the net financial benefits or cost of implementing an EMR system in primary care. The hypothesis is that implementation of an EMR system in primary care can provide financial benefits and improve return on investments. A cost-benefit analyses was performed to study the financial effects of electronic medical record systems in ambulatory primary care settings from the perspective of the health care organization. The data was collected from studies at Partners HealthCare System and from published literature. The reference strategy for comparisons was the traditional paper-based medical record. The primary outcome measure was the net financial benefit or cost per primary care physician over a five-year period. A hypothetical primary care provider patient panel was created using average statistics from the Partners HealthCare System. The panel included 2500 patients which three fourths of whom were under 65 years old, and 17% of those younger than 65 years of age belonged to capitated plans.
Costs associated with EMR implementation were categorized into to two parts: system costs and induced costs. The estimated initial system cost was $13,100 with a temporary productivity loss of $11,200 in the first year. Annual costs for the following five years were totaled to $46,400, or $42,900 in