MD Anderson Points to Epic EHR Implementation to Explain Drop in Income | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

MD Anderson Points to Epic EHR Implementation to Explain Drop in Income

May 13, 2016
by Rajiv Leventhal
| Reprints

The University of Texas MD Anderson Cancer Center in Houston recently reported a $160 million drop over a seven-month period ending March 31, blaming in part, “an increase in expenses combined with a decrease in patient revenues as a result of the implementation of the new Epic electronic health record (EHR) system.”

According to May 11-12 meeting notes from the U. T. System Board of Regents, “Expenses increased  due to the following: salaries and wages  and  payroll  related  costs  increased  due  to  an  increase  in  full-time  employees,  salary  increases  and  increased  premium sharing rates; professional fees and services increased as a result of increased consulting expenses primarily related to  the  Epic EHR    project; and depreciation and amortization increased  as  a  result  of  the completion of several large  projects  such  as  the  Zayed  Building,  which  was  placed  into  service  in  February  2015,  and  the  Epic  EHR  system,  which  was  placed  into  service  in  March  2016,  as  well  as   various  other  facility  management  and  software projects.”

The notes say that MD Anderson did anticipate a material impact to revenues and expenses as a result of the Epic EHR implementation. “The post-implementation strategy will  focus  on clinical  productivity  and  operational efficiencies  to  return  to  normalized  operations  by  year-end,” the notes read.

According to a March 7 report in Houston Business Journal, MD Anderson went live with Epic on March 4. The cancer-center began the process in December 2012, and approved Epic as its vendor in November 2013. While the terms of the contracts weren’t reported, the Houston Business Journal pointed to the Mayo Clinic/Epic EHR deal that would exceed $1 billion over a five-year timeframe.

Get the latest information on Health IT 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



ONC Roundup: Senior Leadership Changes Spark Questions

The Office of the National Coordinator for Health IT (ONC) has continued to experience changes within its upper leadership, leading some folks to again ponder what the health IT agency’s role will be moving forward.

Media Report: Walmart Hires Former Humana Executive to Run Health Unit

Reigniting speculation that Walmart and insurer Humana are exploring ways to forge a closer partnership, Walmart Inc. has hired a Humana veteran to run its health care business, according to a report from Bloomberg.

Value-Based Care Shift Has Halted, Study Finds

A new study of 451 physicians and health plan executives suggests that progress toward value-based care has stalled. In fact, it may have even taken a step backward over the past year, the research revealed.

Study: EHRs Tied with Lower Hospital Mortality, But Only After Systems Have Matured

Over the past decade, there has been significant national investment in electronic health record (EHR) systems at U.S. hospitals, which was expected to result in improved quality and efficiency of care. However, evidence linking EHR adoption to better care is mixed, according to medical researchers.

Nursing Notes Can Help Predict ICU Survival, Study Finds

Researchers at the University of Waterloo in Ontario have found that sentiments in healthcare providers’ nursing notes can be good indicators of whether intensive care unit (ICU) patients will survive.

Health Catalyst Completes Acquisition of HIE Technology Company Medicity

Salt Lake City-based Health Catalyst, a data analytics company, has completed its acquisition of Medicity, a developer of health information exchange (HIE) technology, and the deal adds data exchange capabilities to Health Catalyst’s data, analytics and decision support solutions.