A Cost-Benefit Analysis of Implementing an Electronic System versus Using a Paper Based

System
Overview of the Project Synopsis
The rapid advancement has spread its impact across all sectors, and one area where information
system is being used widely in the quest of improving operations, and increasing productivity is
in the healthcare industry. The rising cost of healthcare has become one of the most publicly
debated subjects based on its effects on the overall stability across all socio-economic aspects. In
today’s society, the need for quality healthcare services has intensified due to the dominance of
chronic illnesses. However, with the rising cost, more people are being compelled to avoid
seeking the services resulting in increased mortality and morbidity issues. The solution to the
increasing cost lies in the adoption of EHR. The current report offers an in-depth analysis of the
Cost-based analysis with regard to the use of electronic systems for record-keeping in
comparison to traditional paperwork system. The study concludes that the use of Electronic
Health Records (EHR) systems is more beneficial in terms of improving the quality of processes,
efficiency, and cost-saving.
The Purpose of the Analysis
The purpose of the analysis is to establish the alternative with the most benefits to the
organization between the implementation of an electronic system versus the paperwork system.
As a startup business, the need to operate under the least cost is intense in order to boost its
profitability and increase its financial stability (Choi, Lee & Rhee, 2013). While the cost
operation with regard to day to day activities need to minimize, the saving can be essential to the
organization in mitigating external pressures of competition. The company will gain the ability to
establish itself in the market and attain competitive advantage through strategic positioning and
marketing. In this context, the analysis will help in identifying the strengths and weaknesses of
each system and the alignment to the needs of the organization. The outcome of the analysis will
help in selecting the alternative with more benefits than disadvantages. In other words, the
analysis will help determine the system that best addresses the operational and financial needs of
the organization.
Problem issue to be addressed including cost/benefits
Digitalization of operation in the healthcare sector has been encouraged highly based on the
ability to improve on the quality of services delivered. However, despite its rapid adoption in
recent years, most companies are still relying on paper-based record systems. It is worth noting
that the paperwork system does not necessarily mean that it is bad for operations. The main issue
that seeks to be addressed is related to the quality of services and cost. Accurate and accessible
record-keeping is vital to the success of any given business. In that, record-keeping normally
influences the flow of operations and determines the ultimate profits (Menachemi & Collum,
2011). It is important to note that besides ensuring that the record-keeping system is secure, it
should also provide additional values which include convenience, accessibility, and affordability.
With affordability, this means that clients can acquire low-cost and yet quality services that meet
their needs leading to their satisfaction. EHR offers convenience based on the fact that patient
records can be accessed at any time and place, thus promoting accessibility. Unwillingness to
adapt the electronic system might affect operations in the future as organizations continue to
digitalize their record-keeping systems.
HER versus Paper-work system- Cost/benefits
EHR system
Benefits
· Improved care quality
· Space and time saving
· Convenient and efficient since the systems can be used in client’s homes
· Patient access
· Reduced operation cost
· Paper-work system
Disadvantages
· Potential privacy and confidentiality issues
· Human errors leading to inaccurate information
· Requires skillfulness
Paper-work System
Benefits
· Ease of accessibility
· Easy to use and understand
Disadvantages
· Requires more space and lacks efficiency
· Challenging to protect
· Old fashioned
One of the most important decisions that a healthcare institution’s management has to make is
related to deciding on the most appropriate record-keeping system. Both paperwork and
electronic system are advantageous and cost at the same time. Thus, the decision is guided by the
option that has more advantages and aligns with the needs of the organization.
Criteria for selecting the best alternative
In selecting the most suitable system for record-keeping, several factors such as cost, ease of use,
efficiency, accessibility, convenience, and availability will be considered. In this case, the
alternative that is readily available, convenient, leads to cost reduction, and is accessible will be
selected. The criteria involve determining the choice that adds value to the healthcare
organization.
Provides comprehensive solutions- the main need that is presented by the organization is quality
improvement, data accessibility, and cost. The system should, therefore, increase operational
efficiency, document control, and quality of services.
Facilitates collaboration – productivity in any given healthcare organization depends on
teamwork, and thus, the system should promote cooperation.
Ease to use- complexity of the system tends to frustrate users by demotivating them since such
systems lead to time-wasting. Besides affecting productivity, the system might require the
organization to invest in training of the employees, thus increasing the operating cost (Job et al.,
2013).
Customer-centered- the system should be focused on fulfilling the general needs of the
customers since client satisfaction is a key factor for success and competitiveness.
Choice
EHR is the selected record-keeping system choice for the organization. Despite the fact that most
startups tend to shy away from implementing information systems based on the fear of incurring
costs, the system is critical in promoting operational efficiency. EHR offers the ability to
exchange medical information electronically, which further helps in the provision of safe and
quality care to all patients while at the same time developing tangible values for the organization.
EHR, unlike paperwork, helps in the provision of manageable and quality healthcare services
(Job et al., 2013). In that, the ability to provide timely, up to date, accurate, and comprehensive
information about patient care are essential in boosting the competitiveness of the company.
Today, patients are not only seeking for affordable healthcare services but efficiency, quality,
convenience, and accuracy of diagnosing as well as treatment are as important. The system is
suitable is supporting cost efficiency as it leads to cost reduction since the amount of paperwork
needed is reduced while improving safety and health. By enhancing data privacy and security,
this will help in boosting customer satisfaction which is valuable to the organization. Thus, the
benefits of the electronic system outweigh its costs.
Impact of the selected option on the organization’s revenue stream
While most conversations with respect to the benefits of the EHR system are centered on its
ability to improve care delivery and efficiency, revenue is an area where the system can
positively impact. While 75 percent of EHR users account for the high implementation cost, 97
percent of them report of increased revenue based on the ability of the system to eliminate billing
and record-keeping problems (Abiy et al., 2018). EHR leads to increased revenue based on its
ability to keep a record of charges and capture changes in expenditure. It is believed that
organizations lose thousands of dollars annually in illegitimate charges that take place through
the paperwork system. By reducing the cost of operation, this will ultimately enhance the
company’s bottom line. In addition, with efficiency and valuable services, this increases the
ability for an organization to attract new clients while retaining the existing ones, which accounts
for increased revenue.
Summary of key facts
The wide adoption of electronic systems has been critical in improving the overall efficiency and
quality of the provided services in the healthcare sector. However, digitalization of data has not
fully replaced paperwork services since certain activities have to be monitored through the
paperwork. In this case, it is all about digitalizing most of the organization’s operations to
promote quality and efficiency rather than replacing the system completely. However, it is worth
acknowledging that the implementation of the electronic system might result in productivity
losses in the short term, thus affecting profitability (Stausberg, Koch, Ingenerf & Betzler, 2003).
However, despite the adverse effects with relation to productivity, it is demonstrated that with
convenience, efficiency, and accessibility of the services, the institutions end up receiving higher
payment for attending to just a few patients.
Recommendations
Based on the above cost/benefit analysis, it is clear that both electronic and paperwork systems
are advantageous to the company despite having varying disadvantages. However, in today’s
healthcare marketplace, which is characterized by the prevalent adoption of information systems,
implementing EHR is vital in gaining a competitive advantage over all the other competitors.
The organization needs to establish itself as one that centers its services around the needs of the
consumers in general. A customer centered organization is likely to build a positive reputation
based on its ability to satisfy the needs of the clients by attaching maximum value to all its
services. The electronic system is highly advantageous as it leads to reduced expenses, errors
elimination, and efficiency. While healthcare clients are more drawn to affordable services, the
ability to offer timely, convenient, and quality services are critical for success. The approach can
help in differentiating the organization from all the other competitors. Thus, it is recommended
that the company should implement the electronic system and integrate with the paperwork
system to lower the cost of operation and boost its overall profitability.
A Cost Benefit Analysis Table
Proposed Benefits Costs Impact on Ranking
Alternative Revenue Stream
EHR System Improved care Potential privacy Reduced 1
quality and operational cost
confidentiality and increased
Space and time
issues revenue
saving
Human errors
Convenient and
leading to
efficient since
inaccurate
 the systems can information
be used in
Requires
client’s homes
skillfulness
Reduced
operation cost

Paper-work Ease of Requires more Increased 2

System accessibility space and lacks operational cost
efficiency and reduced
Easy to use and
revenue
understand Challenging to
protect
Old fashioned

Conclusion
In summing up, record keeping remains to be one of the most essential aspects of operation in
the healthcare sector as it influences the success of any given organization. With the growing
reliance on technology, information system has become an important part of the industry and
acts as a strategic approach for competition. Unlike the traditional record keeping, computerized
record keeping helps in solving issues related to data accessibility, privacy and convenience by
providing timely and accurate data retrieval. However, paper-work keeping cannot be fully
eliminated or replaced and thus adopting the electronic system can be an effective strategy for
adding value to the organization and boosting its long-term competitiveness. Information system
is a requirement in today’s marketplace rather than an option since it determines the financial
stability and operational efficiency of an organization.
References
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