Hospital CFOs Stretched Thin Because of EHR, HIE Investments | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Hospital CFOs Stretched Thin Because of EHR, HIE Investments

November 3, 2014
by Gabriel Perna
| Reprints

Hospitals that are financially struggling are blaming investments into electronic health records (EHRs), health information exchange (HIEs) tools, and patient portals as to why they can’t upgrade revenue cycle software, according to a new survey.

Black Book Rankings, from the New York-based Black Book Research, found that 94 percent of hospital CFOs in organizations that are struggling financially are in that position because of delayed or failed implementations in other IT systems, particularly the EHR. Those CFOs say their organizations have been forced to postpone revenue cycle management software investments until 2016.

On the flip side, those who are in a good position financially say that their facilities are moving full steam ahead with next generation RCM tools and preparing for the switch to new payment risk models based on improving patient compliance and population health management. Almost all have committed to next generation revenue cycle management, currently have implementations underway, or plan on either outsourcing or purchasing new RCM software by next year.  

“Most hospitals have no choice but to look for next generation RCM solutions in order to keep their organizations solvent,” Doug Brown, Managing Partner of Black Book, said in a statement. “Increased self-pay volumes, lack of pricing transparency, no patient financial responsibility/estimation technology, and other reimbursement challenges are driving many marginally performing healthcare organizations to the brink.”

Black Book surveyed 590 hospital and inpatient organizations from 45 states. Those who are struggling are putting investments into RCM and population health on hold to complete patient engagement and EHR implementations. This, despite the fact that 86 percent of those CFOs say their organization must leverage next generation financial system technologies, including software and outsourced services, to keep solvent.

It could cost them their job. In fact, 73 percent of CFOs feel the pressure to make a complex RCM product decision without adequate capital for best-of-breed RCM, is a threat to their long term job stability. Twenty-eight percent of small and community hospital CFOs feel they will lose their jobs in 2016 regardless of the RCM choices they make in the next 12 months while 11 percent of academic center CFOs say the same thing.

The report also ranked the current vendors in the industry. McKesson RelayHealth was first in RCM software customer satisfaction and client experience among small/rural and community hospitals  while ZirMed was first for large hospitals and academic medical centers.

Get the latest information on Finance and Revenues and attend other valuable sessions at this two-day Summit providing healthcare leaders with educational content, insightful debate and dialogue on the future of healthcare and technology.

Learn More



NewYork-Presbyterian, Walgreens Partner on Telemedicine Initiative

NewYork-Presbyterian and Walgreens are collaborating to bring expanded access to NewYork-Presbyterian’s healthcare through new telemedicine services, the two organizations announced this week.

ONC Releases Patient Demographic Data Quality Framework

The Office of the National Coordinator for Health IT (ONC) developed a framework to help health systems, large practices, health information exchanges and payers to improve their patient demographic data quality.

AMIA, Pew Urge Congress to Ensure ONC has Funding to Implement Cures Provisions

The Pew Charitable Trusts and the American Medical Informatics Association (AMIA) have sent a letter to congressional appropriators urging them to ensure that ONC has adequate funding to implement certain 21st Century Cures Act provisions.

Former Michigan Governor to Serve as Chair of DRIVE Health

Former Michigan Governor John Engler will serve as chair of the DRIVE Health Initiative, a campaign aimed at accelerating the U.S. health system's transition to value-based care.

NJ Medical Group Launches Statewide HIE, OneHealth New Jersey

The Medical Society of New Jersey (MSNJ) recently launched OneHealth New Jersey, a statewide health information exchange (HIE) that is now live.

Survey: 70% of Providers Using Off-Premises Computing for Some Applications

A survey conducted by KLAS Research found that 70 percent of healthcare organizations have moved at least some applications or IT infrastructure off-premises.