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The Importance of Offsite Backups

Have you ever thought about how your practice would survive after a disaster? What would happen if your office burned down, or burglars broke in and stole all your computers? Natural disasters, such as floods, hurricanes, and tornados also pose a threat.

Many businesses fail after disasters because they do not plan ahead. Offsite backups are one of the easiest and best ways to protect your practice. If you still use paper charts, you face an even greater risk. Keeping an updated offsite copy of all your paper charts would be prohibitively expensive.

If you use an EMR, be sure to ask your vendor how they handle offsite backups. If you have a web-based EMR, it’s possible that your data is already stored offsite. In that case, be sure to verify they back up your data. If you have a client/server model or a custom system, you may be responsible for your own backups.

There are many companies that offer hosted offsite backup solutions. Their software runs in the background on your computer and uploads files to a remote server, usually in real time. This kind of service is generally easy to use, and great for when you only need to recover a few files at a time.

There are two main drawbacks to this architecture, however. It is usually subscription based, meaning you pay a monthly fee for the service. The other problem is recovery time. If you lose everything, it can take forever to download all of your data.

Hosted backup solutions can be expensive. They usually charge you by the gigabyte (GB). Our average customer has about 130GB of data, which could cost you as much as $345 per month. That equals $4140 per year, and about $20,700.00 over five years - about the cost of some EMR systems.

The second problem with hosted backups is download time. If you’ve ever downloaded large files from the internet, you know it can be time-consuming. Let’s imagine your practice has about 130 GB of data, which comes out to 133200 megabytes (MB). If you lose everything, and have to download all of your data, you could be out of business for a long time. If you have a fast internet connection, such as Comcast, your download speed could be about 4.82 MB/s. With this speed it could take you about 19 days to download 130 GB of data.

Sadly, there aren’t many alternative solutions, aside from using backup tapes, or external hard drives and taking them home with you every night. The best bet would be to use a custom solution that would allow you to backup offsite to your home, or another office. That way your recovery time would be limited by how long it takes you to drive home and retrieve your storage device.

Regardless of what system you go with, offsite backups are a vital part of your business continuity plan. The survival of your practice could depend on it.

Ryan Ricks
Security Officer
www.xlemr.com

Representative Stark Introduces Health-e Information Technology Act of 2008

Representative Pete Stark, Chairman of the House Ways and Means Subcommittee on Health, introduced the Health-e Information Technology Act of 2008 (H.R.6898) on September 15th. If passed, the act would codify certain offices and committees which would make recommendations on standards for interoperability, privacy and security, as well as maximizing the utility for health-related information technology. In addition to recommending standards, the group would also develop an EMR system based on open source technology. Finally, the bill would provide financial incentives to practices that adopt approved EMR systems and reduce Medicare payments for those without a system, or those using an un-approved EMR.

Whether or not this bill becomes law, it shows that Congress has an interest in EMRs and healthcare technology. We can expect more legislation along these lines, and it is very likely that Congress will pass a law requiring every practice to adopt an EMR. This is yet another reason to adopt an EMR. However, don’t just rush out and buy the first EMR you like. Although we don’t know what features will constitute an “approved” system under this or any future legislation, physicians should pick an EMR that can exchange data using the XML and HL7 formats. Physicians should also pick an EMR that has a history of working with the federal government. No one wants to invest thousands in an EMR that doesn’t meet government standards.

Ryan Ricks
Security Officer
www.xlemr.com

Investing in your Practice

Cost is the major barrier that prevents most practices from adopting an electronic medical record (EMR). Most people are uncomfortable purchasing something that costs more money than they have, which is reasonable. However, EMRs are investments that will give you a positive return over time. Today, we’ll look at five ways EMRs can bring you positive returns on your investment.

First, EMRs can reduce operating expenses. They streamline your practice, and help you operate more quickly and efficiently. You can even increase the number of patients you see with less staff. We’re not suggesting you fire anyone, just let natural attrition occur. With an EMR, your practice can easily handle the workload with less staff. You can save up to $45,000 per year with one less employee. That alone will cover the cost of most systems.

Second, EMRs can reduce costs associated with paper. Most practices spend a lot of money managing paper. Printer paper, ink cartridges, and toner all cost money. How many of these items do you buy each quarter? The real cost of paper is in labor. How much time does your staff spend dealing with paper each day? Include time spent copying, stapling, printing, faxing, filing charts, looking for missing charts or other documents, and entering paper-based data into the computer. You could spend around $6000 per year just managing paper. EMRs can eliminate this cost.

Third, EMRs can help you code at higher levels. Physicians usually do a lot of undocumented work. As far as CMS is concerned, if you didn’t document it, you didn’t do it. Documenting all your work can help you quality for higher coding. A one-level increase is worth about $30. Multiply $30 by the number of encounters you have in a year, and you will see how EMRs can increase your revenue.

Fourth, EMRs can help you eliminate billing errors and reduce the number of rejected claims. Normal human error can cost you money – a simply leaving off a zero on a bill could cost you a hundred or thousand dollars. Aside from that, it takes time for employees to find and fix mistakes. You could spend over $1000 per year just fixing billing mistakes. EMRs can save you that money through automated data entry.

Fifth, the 2008 Economic Stimulus Act provides huge incentives for business to make large capital purchases. Section 179 of the act allows you to write off the full purchase-price for items up to $250,000. It also offers 50% depreciation for items exceeding $250k. Therefore, a $35,000 system would only cost you $22,750 after your deduction, assuming a 35% tax rate. The act expires at the end of this year though, so act fast.

As we’ve seen, EMRs can increase your revenue over time. Don’t think about them in terms of what they cost you now; think about how much money they will generate for you over time.

Ryan Ricks
Security Officer
www.xlemr.com