3 times EHR contracts, go-lives added to hospital and health system operating loss in the past year

Here are three hospitals and health systems that have attributed operating losses to their EHR projects in the past year.

Burlington-based University of Vermont Health Network reported a $10 million operating loss in the first quarter of fiscal year 2020, which it attributed partly to an Epic EHR installation that cost more than anticipated. UVM Heath Network CEO John Brumstead said the $151.7 million EHR implementation project cost more than expected and took longer for physicians to adjust to than anticipated, which decreased productivity.

Kaleida Health in Buffalo, N.Y., reported a $24 million loss on $1.86 billion in revenue in fiscal year 2019, placing partial blame on its Cerner EHR investment. Kaleida posted a $25 million investment into its Cerner EHR system, which is part of a $125 million project to upgrade and expand the EHR over several years.

West Reading, Pa.-based Tower Health reported higher revenue in the nine months ended March 31 but ended the period with an operating loss. In the first three quarters of fiscal 2020, the health system recorded $27.1 million in one-time expenses – $7 million related to Epic implementation costs at newly acquired hospitals, and the remainder related to other one-time transaction costs.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars