Health system officials said the cost to implement the Epic system have started to drag down earnings. Partners CFO Peter K. Markell said the system expects a $200 million hit to its net surplus over three years from expenses tied to the implementation of the Epic EHR system.
“[It’s] training costs, the costs of elbow-to-elbow support to get people to really learn and use the system” Mr. Markell told the Boston Globe. “You need people to do all that work.”
According to the report, Partners has hired 600 employees, as well as consultants, to launch the system.
The health system ended the first quarter of its fiscal year with higher revenue than the same period of the year prior. However, after accounting for increased expenses, Partners operating income slumped to $12.8 million, down from $74.1 million a year earlier.
Partners took a hit on investments in the period that ended Dec. 31, causing the system to post a $37.5 million loss for the quarter. That’s compared to a net gain of $40.6 million in the same quarter of the year prior, according to the report.
More articles on healthcare finance:
Cleveland Clinic’s Lakewood Hospital ceases inpatient services
California hospital relies on bankrupt district to make payroll
Mayo Clinic to close Wisconsin clinic
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.