Every healthcare provider knows electronic health record (EHR) downtime is an inevitability–and so are the financial implications surrounding a system outage. In fact, a 2023 study shows that EHR downtime can cost hospitals up to a shocking $25,000 per minute. But how can this be?
Well, when you factor in the direct and indirect costs of EHR downtime, the financial burden begins to reveal itself in a number of ways. From canceled or delayed procedures to costly fines resulting from non-compliance, system outages pose a serious threat to both patient safety and the financial health of your organization.
But First, What Causes EHR Downtime?
While some downtime events occur as a result of regular system maintenance, unplanned downtimes are far more disruptive to operations. Most often, the primary culprits are technology malfunctions, outdated system infrastructure, network failures, or security issues like cyberattacks. Natural disasters such as hurricanes or power outages can also contribute to the chaos.
The consequences are significant for both patient care and operational workflow. A sudden loss of access to an EHR system can create bottlenecks in accessing critical records, delay decision-making, and increase the risks to patient safety.
The Direct Costs of EHR Downtime
EHR downtime has glaring direct costs that healthcare providers feel immediately, including:
1. HIPAA-Related Fines
Data breaches or non-compliance due to downtime jeopardize patient data security and can lead to hefty fines of up to $50,000 per violation.
2. Billing Disruptions
When an EHR system goes offline, real-time financial activities, like claim submissions and patient billing, grind to a halt, delaying revenue cycles and increasing the cost of downtime.
3. Lost Revenue from Reduced Productivity
With staff unable to access digital tools, inefficiency becomes the norm. Lost productivity exacerbates the losses, as administrative teams struggle to perform basic tasks.
4. Recovery Costs
Restarting systems, reconciling data, and ensuring everything is back to full functionality can rack up substantial costs for the organization.
5. Paper Usage
During downtime, reverting to manual processes like using paper records dramatically increases operational costs in terms of materials and storage systems. These additional expenses reveal the average cost of downtime extends far beyond lost digital functionality.
6. Cancelled Procedures
A delay or cancellation of scheduled services translates directly into lost income and dissatisfied patients, especially those who have chosen to undergo elective procedures. In turn, organizations end up suffering the compounded effects of lost revenue and unhappy patients.
The Indirect Costs of EHR Downtime
Though indirect costs of EHR downtime are not immediately realized, the consequences can be far-reaching:
1. Administrative Challenges
Adopting paper-based workflows during a system outage is not only inefficient but error-prone. Misfiled documents or delayed correspondence with insurance companies can lead to further complications, adding to the hidden costs of downtime.
2. Impact on Patient Care
Without access to up-to-date patient data, clinicians face an increased risk of prescribing incorrect treatments or delaying critical interventions. This not only compromises patient care but endangers lives.
3. Training Expenses
Preparing staff with downtime procedures might seem practical until you realize the ongoing expenses tied to training programs, especially in large healthcare organizations where the workforce is constantly evolving.
4. Reputational Damage
Unplanned downtimes erode patient trust. Long waits, missed procedures, and disorganized workflows can lead to frustration, fewer referrals, and negative reviews. This level of reputational harm has long-term financial repercussions.
What Can You Do to Save Costs in the Event of EHR Downtime?
Investing in a robust downtime solution is the most efficient way to reduce the cost of downtime, safeguard patient data, and maintain care continuity. Downtime solutions like that of dbtech’s provide critical tools to providers so they can maintain access to vital information during outages.
Benefits of dbtech’s Proven Downtime Solution
- Offline Access to Workflows: Get real-time access to patient data and reduce workflow disruption during outages.
- Streamlined Patient Care: Print out items like barcoded labels and consent forms and ensure continuity in patient workflows.
- Faster Recovery Times: Disaster recovery tools can restore operations in hours rather than days.
- Reduced Paper Usage: Scanned patient data eliminates reliance on error-prone manual processes.
- Lost Productivity Minimized: Efficient solutions save time and resources, preventing long-term financial losses.
Mitigate the Cost of Downtime with Dbtech
The hidden costs of EHR system downtime can come in form of lost revenue, administrative inefficiencies, or compromised patient care – all of which can spell disaster for your organization. But, when your organization invests in a solid downtime solution, you’re better positioned to preserve your financial health and reputation – all while allowing you to deliver exceptional patient care regardless of system outage.
Schedule Your Free Downtime Assessment with dbtech
Are you unsure of what the indirect costs of EHR downtime would be for your organization? Contact dbtech for a free downtime assessment with dbtech and our experts will help you identify potential vulnerabilities and recommend solutions that can save you time, money, and productivity during a downtime event.