HealthLeaders-InterStudy, a leading provider of managed care market intelligence, reports that while health systems and physician groups in the Phoenix market seem to be ahead of the curve in adopting electronic medical records (EMR), there is a high rate of “deinstallation” wherein physician groups cancel their EMR contracts as a result of training, functionality or affordability issues. According to the recent Phoenix Market Overview, this trend is especially prevalent among smaller physician groups and points to the need for a simplified, affordable solution.
The uptake of EMR technology in the Phoenix area and throughout Arizona is a result of a 2005 executive order by then-Gov. Janet Napolitano that all healthcare providers install EMR by 2010. The market’s top hospital systems, Banner Health and Catholic Healthcare West, have installed EMR, as have several other hospitals in Phoenix. Long-term benefits of EMR include reduced transcription costs, lower chart and file storage expenses and the potential for reduced premiums on malpractice insurance.
“Because the Phoenix area has been a real leader in EMR uptake, this is the first market in which we are seeing this deinstallation issue arise, but it likely will not be the last,” said Chris Clancy, market analyst with HealthLeaders-InterStudy. “There’s a physician shortage in Phoenix, so with overcrowded waiting rooms, it’s difficult for doctors and their staffs to carve out ample time for training on EMR technology.”
Financial issues are another factor in physicians opting out of EMR deals, as the system requires a significant financial investment and expensive upgrades. Such challenges are not unique to physician groups as hospitals are struggling with financial constraints as well. In areas like Miami, where the economic downturn is threatening the profitability of hospitals, uptake of EMR has been slow because of a lack of funding for such capital projects.
