University of Arizona Health Network: Epic Install is One Reason for Poor Financial Performance

The University of Arizona Health Network, based in Tucson, is reporting almost $30 million in losses during the first eight months of the fiscal year. Hospital officials point to a recent installation of an Epic electronic health record system as one major reason for the system's poor financial performance, according to a report in the Arizona Daily Star.

The initial capital outlay for the Epic system was approximately $83 million, and the health network spent an additional $32 million in additional training and support and in costs associated with a one-month delay of the system's scheduled go-live, according to the report.

"This is the biggest operational change this organization has ever undertaken," CIO Dan Critchley told the Daily Star.

The health network also saw reduced revenue through fewer state residents than expected receiving health insurance under the Patient Protection and Affordable Care Act as well as loss of federal funds from the expired Safety Net Care Pool program, according to the report.

However, University of Arizona Health Network Board Chairman Steve Lynn believes the health network will overcome these financial strains.

"The issue is more about where we are going and what things are in place to change the trajectory," Mr. Lynn told the Daily Star. "It was an especially difficult time financially because of Epic, there was no choice in the matter. That period of time has fortunately passed and now we can do much better."

More Articles on EHR Installs:

Troubled EHR Implementation Preceded Athens Regional CEO's Exit
Massachusetts House Passes Revised EHR Requirements for Physicians
EHR Install Factor in Centegra's Weakened Credit Rating

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