Cost of Custom EMR Development
As the healthcare industry slowly progresses and embraces technology, the quality of care has significantly increased in the past few years. However, the increasing burden is something that the healthcare industry has been struggling with lately.
In 2024, the WHO predicted that there is going to be a significant shortage of nurses globally, accounting for nearly 29 million. And even prior to that, the problem had been concerning many healthcare providers.
Having said that, there are some healthcare organizations trying to find a solution to these issues through indirect means, like making it easier for providers and patients to access care quickly and effectively.And this is how the healthcare industry became a crucial technology customization hub for the healthcare IT industry. Moreover, according to McKinsey, digital transformation of processes can improve productivity by almost 20-30%.
Though the tide has been in favor of technology in healthcare, digital transformation is quite hard, especially in healthcare, which is quite comfortable with existing processes. Coupling that with the high cost of EMR software development or healthcare software, it becomes a difficult venture for healthcare organizations.
In this blog, let’s explore the factors affecting EMR development cost, and let’s see how to minimize it for building an affordable custom EMR solution, which is not only better but also faster.
Why is Cost a Key Factor in EMR Software Development?
Being a healthcare provider yourself, I need not explain why EMR is so crucial for your practice. However, with the fast-moving technological advancements in the healthcare landscape, custom EMR software has expanded its wings, broadening its reach in administration and care delivery alike.
This makes the EMR software ecosystem quite complex, where healthcare organizations have to invest in developing specific functionalities, hire EMR software developers, and meet other intricacies that lie in its development.
After this, let’s have a brief overview of the price of custom EHR software, the factors that influence it, and how you can control it.
The Ultimate Guide to Planning Development While Managing Your Custom EMR Software Cost
Free DownloadDevelopment Costs
1. Development Team
The development of your software is happening from scratch, and for that, you need to hire EMR developers who are skilled and dedicated. To assemble a skilled team of EMR software developers, you will need project managers, EMR developers, UI/UX designers, and testers.
The formation of development teams is costly because, depending on the experience level of the software developers, team size, and location where these EMR developers are based, the cost changes. You see, managers are necessary to keep the project on track and ensure the software meets the needs and requirements of your clinic. The developers code the software, and the UI/UX design the software for usability. Testers identify and address the software’s developed functionality.
Here, forming this team in-house can be a costly affair, but you can surely minimize the overall cost by outsourcing the development. Lately, this has become a standard practice as it’s easier to determine the budget for custom EMR development and budget healthcare software development strategies accordingly.
2. Technology Stack
Development team formation and choosing the technology stack are mostly done at the same time. You see, without choosing a technology stack, developing a team is simply pointless. Having said that, choosing the technology stack is also a factor that influences EMR software development pricing.
Some of the things that will make up most of your technology stack budget are programming languages, databases, and cloud platforms. Depending on the needs and requirements of your EMR software, the choice of the technology differs and directly depends on the overall development cost.
A hack for you to reduce your development cost from the technology stack is by finding the right balance between open-source and proprietary technologies that would support your software. And last but not least, the potential cost involved in licensing and maintenance costs for custom EMR and for the chosen technologies is something that you should consider.
3. Development Methodology
The last factor that is most likely to affect the EMR software development cost in its development phase is the development methodology you choose. You see, over the years, many software development methodologies have come up, such as agile, Waterfall, etc.
Depending on the nature of these methodologies, the cost can increase or decrease. For instance, with an inflexible methodology like Waterfall, the cost overrun increases and can also increase the time of development directly or indirectly, leading to higher EMR development cost.
However, no matter what development methodology you are adopting, you need to understand that the methodology should support your EMR software development and must align with the project requirements and budget.
Integration Costs
Given the dependency of your care delivery process on other healthcare software systems, you also need to integrate your software with these healthcare software systems that are out of your ecosystem. Here are some of the factors in integration that you need to keep aside as integration costs for EMR software.
1. Third-Party Integrations:
There are certain costs associated with the integration of your EMR software with other healthcare systems such as labs, pharmacies, insurance providers, etc. The costs associated with third-party integration are usually API development, data mapping, and testing those integrations.
While there are many tried and tested methodologies for integration, there can still be some unexpected integration challenges that may arise, which can be a little costly in nature. It is suggested that part of the healthcare software budget be addressed.
2. Legacy System Integration
As a healthcare organization, you need to understand that most of the software systems across the country still use legacy systems. This makes it difficult for new-age software solutions using advanced technologies to integrate easily with legacy systems. Oftentimes, that is the expected cost that arises in the development cycle.
The costs associated with legacy system integrations are usually data migration, system updates, and staff training. Along with that, the complexity of the software and the cost of modifying your system to integrate with it are oftentimes high. Due to these complexities and integration challenges, the integration cost in EMR software development is high at times and requires carefully curated healthcare software budgeting.
Maintenance & Support Costs
Coming to the last cost factor of EMR solutions, the maintenance and support costs are usually what is overlooked by many healthcare organizations. This is why EMR software has a high failure rate during implementation and utilization.
The costs associated with the EMR software maintenance and support after development are discussed below:
1. Ongoing Maintenance
Once the software is deployed and you start using it, it will naturally deal with a lot of different types of data. This would lead to bugs in the software, performance issues due to increasing load, and upgrades in securing data in the software often. All these come under ongoing maintenance cost for custom EMR, which is an ongoing process and is essential for the stability and reliability of the EMR Software.
The recurring cost associated with this is monitoring the system for its stability and reliability and providing the necessary support to ensure that. However, there can be certain issues that cannot be foreseen, and addressing them is a significant cost factor for an EMR solution that you must consider.
2. Upgrades and Enhancements
With the evolving nature of the technological and healthcare landscape, there are going to be future upgrades that will be essential for the enhancement of the EMR system. For instance, the development and implementation of a new feature or ingraining of some changes that are related to regulatory compliance, all these must be considered in budget estimation for EMR software.
Moreover, with this, you can ensure that the system is always functional and competitive, giving you an edge over your competitors. Last but not least, there can be some unexpected costs in this as well, and determining EMR development expenses can help you in budgeting and reducing the cost significantly.
Conclusion
If you’re still reading this, then we’ve covered almost all the key factors that impact the EMR software development cost. For healthcare organisations with a tight budget, the best way to reduce EMR software development cost is by carefully planning and budgeting to manage costs effectively.
Furthermore, the ROI of custom EMR software investment in a well-designed and implemented system can be instantly felt in your practice. But oftentimes, it is even hard to get a rough idea of how much the EMR software development is going to cost, right?
And it can be overwhelming, we can understand. On that note, help us, help you in developing and reducing the EMR software development cost. Click here to get your first free consultation.
Frequently Asked Questions
Several key factors influence the cost of developing EMR software. These include:
- Complexity: The complexity of the software, including the number of features, integrations, and customizations, significantly impacts development costs.
- Scalability: Designing the software to accommodate future growth and increasing user volume requires additional development time and expense.
- Security: Implementing robust security measures is crucial for protecting sensitive patient data, which adds to both development and ongoing maintenance costs for custom EMR.
- Regulatory Compliance: Meeting healthcare standards like HIPAA adds complexity and requires legal expertise, increasing overall development costs.
Customization requirements significantly increase the overall cost of EMR systems. This is because tailoring the software to specific workflows, integrating with existing systems, and adding unique features demands extra development time and resources.
Yes, hidden expenses in Healthcare software development can include:
- Integration costs: Connecting with existing Electronic Health Records (EHRs) and other systems.
- Data migration and cleansing: Ensuring data accuracy and compatibility.
- Regulatory compliance: Meeting HIPAA and other healthcare regulations.
- Ongoing maintenance and support: Software updates, bug fixes, and technical support.
To compare EMR development costs, consider:
- Vendor pricing models: Per provider, per user, or tiered pricing.
- Implementation fees: One-time costs for setup and training.
- Ongoing maintenance: Monthly or annual fees for software updates and support.
- Customization options: Costs for tailoring the EMR to your specific needs.
- Hidden costs: Factor in potential expenses like hardware, integration with other systems, and staff training.
By carefully evaluating these factors, you can make an informed decision about the most cost-effective EMR vendor for your practice.
Key considerations for estimating EMR ROI include improved patient outcomes, increased efficiency, enhanced revenue cycle, data-driven decision-making, and reduced costs.
Maintenance and support expenses are a major factor in the long-term cost of EMR development. They cover ongoing updates, bug fixes, technical support, and system upgrades, ensuring the EMR system remains functional, secure, and compliant with evolving regulations.
Regulatory compliance significantly increases the costs of EMR software. Meeting stringent standards like HIPAA requires robust security measures and complex features, driving up development and maintenance costs for custom EMR. Additionally, ongoing compliance audits and training further add to the financial burden for healthcare providers.
No, building a custom EMR isn’t always more expensive. While it requires a higher initial investment, it can be more cost-effective in the long run. Off-the-shelf options may have lower upfront costs but can lead to limitations and expensive workarounds as your needs evolve.
The cost of a basic EMR system can vary widely, but typically ranges from a few thousand dollars to tens of thousands of dollars per year, depending on the features, number of users, and vendor.
Beyond development costs for a software project can include:
- Training: Educating users on the software’s features and usage.
- Maintenance: Ongoing updates, bug fixes, and security patches.
- Support: Providing assistance to users through documentation, FAQs, or customer service.
- Data migration: Moving existing data to the new software system.
Here are some strategies to save money on EMR development without compromising quality:
- Open-source options: Leverage open-source EMR software like OpenMRS or Bahmni to reduce licensing costs.
- Phased implementation: Implement EMR features incrementally, starting with core functionalities and gradually adding more complex features, allowing you to control the cost of features in custom EMR.
- Vendor evaluation: Thoroughly evaluate EMR vendors, comparing pricing, features, and support options to negotiate favorable terms.
Here are some red flags to watch out for regarding EMR development costs:
- Unrealistic Estimates: Be wary of overly optimistic or vague cost projections.
- Hidden Fees: Inquire about all potential costs, including maintenance, upgrades, and support.
- Lack of Transparency: Avoid vendors who are unwilling to provide detailed cost breakdowns.
- Scope Creep: Unforeseen changes can significantly increase costs. Define project scope clearly.
- Vendor Lock-in: Ensure you can easily transition to another vendor if needed.
- Poor Communication: Miscommunication can lead to delays and cost overruns.
- Inadequate Training and Support: Factor in the cost of training staff and ongoing support.
