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Electronic Health Records Serves a Vital Role in Healthcare Outsourcing Industry

|Includes: Automatic Data Processing, Inc. (ADP), ATHN, MSFT
By: Jamee C.

Medical institutions are incorporating the use of Electronic Health Records or EHR’s with their businesses in order to streamline processes while medical billing companies are increasingly incorporating EHR along their service lines in an effort to take advantage of the increasing adoption of EHR among these institutions.

The American Medical Software published an article during the last quarter of 2010 which showed how medical institutions and medical personnel improved their services after using electronic medical records. They are seeing that the number of errors have declined and that it has improved the quality of care and patient safety. Aside from that the American Health Information Management Association has also identified the provision of timely and reliable information of patients as another challenge that draws the line between successful and unsuccessful treatment. Through the integration of technology with medical processes, however, EHR is proving to be an efficient method of relaying timely and reliable patient information through a secure environment.

During the last few days of February, Microsoft Corp. (NASDAQ:MSFT) and athenahealth (NASDAQ:ATHN) announced that they were collaborating to provide cloud-based services that will further improve the exchange of information among healthcare organizations and providers. Such collaboration will bring about greater opportunities in the medical field as solutions that can address the issues in the healthcare industry will now be available to the market. According the to the article, two healthcare institutions, Steward Health Care System and Cook Children’s Health Care System, have already expressed their support for the collaboration between Microsoft Corp. and athenahealth after testing out the systems.

Developments are continuously rolling out in the healthcare field as software solutions providers are still looking to provide software solutions to medical facilities. This may have been done previously already but as the industry develops, software providers must also find ways on how to address such innovations in the market. On the first day of the month, MedIT, a medical billing outsourcing service provider, launched the news that their EHR software solutions are now available for medical facilities and practices, as well. Such services revolve around the medical billing and receiving aspect of the healthcare industry and the recently launched software solutions will enhance the performance of healthcare institutions as the software will help in the filing of invoices, among other medical billing and receiving tasks.

Having seen how the industry reaps the benefits of integrating EHR software with other medical tasks and that there is a great demand for such product; outsourcing businesses are also being lured into tapping into the industry. Recently, there was an announcement of an acquisition of a medical software company.Automatic Data Processing (NASDAQ:ADP), a provider of human resources and finance and accounting solutions, announced that it has acquired AdvancedMD, a developer of practice management and EHR software. AdvancedMD’s president and CEO, Eric Morgan, perceives this acquisition as a means for them to better service their customers, and ADP has utilized this agreement into their suite of medical practice services to provide a complete Medical Practice Optimization solution based on AdvancedMD’s offerings.

Electronic Health Records has indeed proven to be a vital part of the healthcare industry, especially since it contributes largely to medical outsourcing solutions processes. It is paving the way for a centralized system of patient records which will ensure that the processing of and the exchange of information will be done in an efficient manner.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.