Exploring the Epic Cost: What You Need to Know?

Medical practices are often curious about Epic EHR integration costs. How much epic costs is a major concern for small, independent clinics, especially. The cost is a significant barrier to implementing or integrating EHR systems. And if healthcare organizations are keen on opting for the best in the market, i.e. Epic Systems, then it’s crucial to know the overall cost. According to the available reports on the internet, Epic EMR costs around $1200 to $500,000. However, multiple factors impact the cost of Epic EMR.
This article will give invaluable insights into the cost of Epic EHR. So, let’s look into the different aspects that determine or affect the Epic software cost. Starting from the overview of Epic EMR cost.

An Overview of Epic EMR Cost

Whether it’s a small practice or a large hospital with multiple branches, the cost of Epic EMR varies depending on different parameters. The small practices or independent clinics will have different requirements, like limited medical records and services offered as compared to a large hospital. A large hospital is more likely to offer a wide spectrum of services and will also have more patients. So, the EHR software needs to cater to these aspects.

The cost of Epic, thus, changes as per the requirements of the practices. For a small practice, the Epic EMR can cost around $1200 excluding the training charges. On the other hand, for a large hospital, Epic EHR costs can average up to $50,000.
To give you a rough idea of the cost of different EHR systems available in the market, we have provided you with a quick list below. The chart discusses the estimated price for one-time setup fees, annual ongoing costs, and token amounts for Epics.

Is Epic Expensive? 

Medical records storage solutions have always allowed providers to boost patient experience and make their job easier. Like practice management solutions, EHR or EMR systems simplify workflows, improve data interchange and promote interoperability. And Epic EHR/EMR is the most widely recognized software solution. According to a recent report, nearly 45% of American population’s medical records is stored in Epic EMR system.   

Despite this huge number of users, multiple providers are still skeptical about adopting Epic. Even the government is emphasizing the implementation of medical imaging software and IoT healthcare solutions. However, providers, especially small clinics and hospitals, are struggling with the high EMR implementation cost. Why is Epic so expensive, and what factors affect its costs? Let’s discuss it below.

What Factors Affect the Epic Cost?

There are a couple of reasons or factors affecting the Epic expenses and these factors are:

1. Software Complexity 

Epic EHR isn’t a highly complex software to use. But providers have often reported facing difficulty in navigating it. The user experience of Epic is the reason behind this lag. To help providers seamlessly use the software, Epic offers training and a support team. And this holds an extra charge, which ultimately adds up to the overall cost of Epic. Epic EMR enables providers to seamlessly share data and access patient medical records despite these extra charges. Moreover, patients can also get their medical history whenever they consult a specialist or see other doctors.     

2. Customized Features  

Epic EMR with a higher level of customization means a higher price. Take, for example, specific templates or patient charts. Besides, integrating additional services such as pharmacy, lab, and immunization registries with Epic EMR will also increase the cost of Epic. Further, the administrative features heavily impact the Epic cost. A higher level of these administrative features means higher Epic EHR pricing. Apart from this, the support for the mobile solution, EpicCare, is also likely to increase Epic EMR pricing. In short, adding advanced versions of existing or new features will drastically increase Epic pricing by thousands of dollars. The best you can do is to wisely choose the required features and keep the Epic cost in control.

3. Size of the solution 

The size of the solution also has an impact on the Epic software cost. As previously said, smaller facilities only pay around $1,200, while large hospitals have to pay around $500,000. With such a wide spectrum of rates, it should go without saying that there is plenty of room for negotiation. And the charges for your practice will most likely fall somewhere in the center. Well, this also depends on the size of your facility. Moreover, the increased Epic EHR pricing for larger institutions makes sense, considering that the system will need to access more people and keep information on more patients. 

What are the Different Pricing Models of Epic EHR?

Epic EMR/EHR software is designed for medical organizations, and system charting contains referrals, patient history, and medical data to ensure that patients receive satisfactory care. In addition, the database system includes analytics and reporting capabilities. Small clinics, in general, only require some of these complex features and not the complete suite of advanced features to streamline their organizational workflows. Such requirements demand for designing of several pricing models.

Here are Epic EHR pricing models:    

• The starting price of self-hosted Epic solutions is $1200  
• The starting price of Epic software for hospitals and large clinics is $500,000  
• Epic EMR pricing per month is $200 to $35,000  
• The average cost of Epic software training is $2000 

Let’s discuss in brief, why Epic has various pricing models.

Why Does Epic Have Various Pricing Models?

Epic is a leading cloud-based electronic health record (EHR) systems provider. It offers various pricing models to cater to the distinct needs and budgets of different healthcare organizations. It ensures that medical organizations only pay for the services they use. However, the biggest truth is that Epic pricing completely depends on the features you choose and the average number of patients your facility deals with.

Additionally, these models include upfront licensing fees, subscription-based pricing, and revenue-sharing arrangements. Upfront licensing fees refer to a one-time payment for the software license. The subscription-based pricing model involves paying a monthly fee for a set amount of time (usually monthly or annually) to use the EMR software. The revenue-sharing arrangement models are usually for larger healthcare organizations or systems. Here the host hospital gets benefits from whatever cost-sharing arrangement they agree to with their partner, reducing their total cost of ownership. But it may require more complex negotiations.

What Are the Cost Parameters of Epic?

Below discussed are the six cost parameters of Epic:

1. Epic Type of Support & Maintenance Cost  

Ongoing software maintenance and support of Epic EHR is quite expensive, especially if the product requires frequent upgrades or has a high rate of defects or faults. Besides, depending on the complexity of the software and the level of assistance required, the average maintenance cost can range from a few hundred dollars to several thousand dollars each year. According to some vendors, the cost of Epic EHR training could go as high as $2,000. On the other hand, some vendors don’t charge for training. 

2. Custom Epic Development Cost  

The cost of custom Epic development depends on the features and integrations you opt for. Customizing Epic software to match the organization’s specific demands can be expensive, especially if major development or integration work is required. That’s why the average cost of customization can range from a few thousand to several hundred thousand dollars.  

3. Epic Migration Cost  

Data migration from old legacy systems to Epic EHR software is a time-consuming and expensive procedure. This cost can further go up if the data is small or simple. That’s why the cost of Epic migration depends on the amount and complexity of the data. The average cost can range from a few thousand to several hundred thousand dollars.

4. Cost of implementing Epic in a large hospital  

As mentioned above, Epic’s implementation cost in a large hospital is around $500,000. It can increase further if advanced features and upgrades are included occasionally. However, the minimum Epic EMR system costs for large hospitals isn’t more than $35,000 per month.

5. Cost of implementing Epic in a small clinic  

Epic EHR cost for small practice is around $1200, as stated above. Small practices typically have limited requirements. It’s best to set a reasonable Epic EHR budget if providers are keen on adopting Epic.   

6. How much is Epic’s unlimited cost

Epic EMR costs vary depending on the size and needs of the healthcare company. Implementation and support fees can range from $60,000 to $1 million, with continuous maintenance and upgrades increasing the overall cost.  

What Are the Hidden Costs of an EHR Implementation?

When considering an EHR implementation cost breakdown, it is crucial to check whether the implementation budgets include direct and indirect costs.

Direct costs may include:

Indirect costs may include:

Considering these hidden costs alongside the upfront expenses can help health organizations with accurate Epic EHR budgeting and effectively managing the EHR implementation process.

How to Compile your EHR costs?

How much does EHR cost is a sort of generic question that usually gets answered with a starting phrase, “it depends.” To get a precise answer you need to have a clear understanding of what you are buying, the budget, how long you intend to use it, and the probable ROI of its implementation (for both long-term and short-term projections). Here’s a quick list of variables that can affect the EHR price:

For creating a comprehensive model of costs, the cost of an EHR should be expressed in terms of budget-friendly price and long-term and comprehensive Epic cost estimation.

Organizations struggling with uncertainty may find it difficult to compile EHR costs, especially when they operate on thin profit margins. Recent EHR research shows that the average budget per user for EHR software is $1,200. It was found that single practices spent more on their software than larger practices.

Moving on, efficient and comprehensive measures for modeling long-term costs imply calculating the total cost of ownership (TCO). What is TCO? Total cost of ownership (TCO) is a full assessment of information technology (IT) and services costs over time. It represents an accounting of complete costs (both short-term and long-term and direct and indirect).

Here’s the following chart that illustrates the estimated average upfront cost, yearly cost, and five-year total cost of ownership for both on-premises and SaaS EHR deployment.

NOTE: The costs may vary depending on the required features and size of your practice.

Government Incentives and Funding That Can Aid in Epic EHR’s Adoption

As we’ve already mentioned, the development of Epic software systems is expensive. Even integration is costly, whether with telehealth solutions or remote patient monitoring systems. That’s why healthcare organizations choose healthcare funding and government incentives for implementing and integrating Epic software.   

Regarding funding, the Federal government is open to offering support for EHR adoption by providing grants and incentives. Typically, the only criterion for medical organizations to get these grants and incentives is to demonstrate the promotion of interoperability. And some of these grants are-   

1. Medicare & Medicaid Promoting Interoperability Programs  

These programs compensate qualifying hospitals and professionals. The qualifying hospitals and health professionals must use ONC-certified EHR technology, keep at least a 90-day reporting period, and demonstrate electronic clinical quality indicators. Attaining these aspects will provide them with Medicare and Medicaid incentives.

2. SAMHSA CCBHC  

SAMHSA provides these expansion grants to community-based healthcare providers to install new EHR and EMR technologies. To be eligible for the funds, the HIT (health information technology) department must offer information on how the CCBHC will enable electronic health information interchange, which will improve care transitions.  

3. MACRA Expansion Grants  

This expansion grant is usually called MACRA and features two tracks: a merit-based incentive payment system and an advanced alternative payment model. The merit-based program allows qualifying medical service providers to get payment adjustments if they submit their paperwork before the deadline. In contrast, the second program allows them to receive 5% of the incentive payment.  

Why should you invest in Epic EHR?

Despite the staggering cost of Epic integration, Epic as a service offers superior support options, which other EHR software solutions are less likely to provide. And that won’t leave you concerned or clueless about your workflows or medical records. Here are some of the top reasons you invest in Epic despite its being expensive. 

1. Features and integrations 

As mentioned, Epic can offer high-level features and integrate them into your existing systems. These features can improve operations, boost patient engagement, etc. Epic will be a great fit for your varying needs and preferences if you have a good EHR budget.  

2. Security  

Epic design and architectural principles are HIPAA compliant across all core HIPAA tenants of administrative and technical safeguards. That’s why irrespective of Epic’s cost; providers can invest in Epic to ensure full security of the PHI.   

3. Cloud-based Epic Platform   

The most significant advantage is that this cloud-based Epic EHR platform promotes interoperability and data interchange, allowing systems to share health information to ensure that critical data is always in the hands of those needing it the most. If your practice’s priority is to ensure interoperability, then Epic would be a good fit.

Final Thoughts 

Epic EMR is critical software that includes everything a healthcare provider needs to organize patient data and perform efficient services. However, it is not inexpensive owing to multiple factors such as features, the size of the facility, the number of patients in a facility, who will have access to the system, the number of records, and so on. All these aspects add up to determine the actual cost of Epic. In short, Epic’s cost is subjective and tentative, considering all the information we have. 

Through this article, we intend to provide you with a thorough overview of the cost of EHR and hope you might have got some idea on how to estimate the expected Epic project cost. budget for your project.

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