Impact Insights

Week in Review 8/29/2014

A new report from KLAS finds that more than one quarter (27%) of ambulatory practices are considering replacing their current EHR. An additional 12% reported they would like to replace their EHR, but “cannot do so for financial or organizational reasons.” According to FierceEMR, Cerner and Epic are at the top of the list for owned or closely affiliated practices that are considering a change, while independent practices are more focused on athenahealth and eClinicalWorks.

Impact Advisors’ Thoughts: The number of practices looking at replacing their EHR is not altogether surprising, but it is interesting to note the vendors different practices appear to be considering. The interest in Cerner and Epic among owned and closely affiliated practices certainly makes sense; especially given the benefits in today’s market of integration across the continuum and the fact that both Cerner and Epic continue to make significant gains in market share with hospitals of all sizes.

 

As a follow up to the news about the Community Health Systems (CHS) data breach, Forbes provides an interesting assessment looking at the actual costs that result from such an incident. According to the story, there are a number of components to determining the total cost of a major breach: 1) the costs associated with remediation, 2) the payment of fines, 3) the costs associated with providing identity protection/credit monitoring services to affected patients, 4) the legal costs stemming from lawsuits, and 5) the costs to the healthcare system as a whole from fraudulent use of stolen patient information. Overall, Forbes speculates that this particular breach alone could cost CHS between $75 and $150 Million (!).

Impact Advisors’ Thoughts: The story was written in light of the specific incident at CHS, but the breakdown of the many different types of associated costs will apply to any hospital or health system that is the victim of a data breach. Highly recommended reading that serves as yet another reminder of why it is so important to be as proactive as possible when it comes to protecting patient information.

 

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