Under the Health Information Technology for Economic and Clinical Health Act of 2009 (HITECH Act), eligible healthcare professionals may qualify for up to $63,500 in federal grants by adopting and showing meaningful use of certified EMR technology. Although these incentive payments can help providers cover EMR implementations costs, stimulus money only gets issued to providers after they have attested to Meaningful Use. This means that healthcare professionals must still take on the full upfront cost of implementing an EMR – one that not all organizations are financially able to make.
A great way for physicians to get around the cost barriers is to consider one of the many financing options available to them. From bank loans to vendor leasing, there are a wide range of cost effective alternatives to help healthcare organizations reach their goal of implementing a certified EMR.
One of the more common financing options for EMR software is leasing, as it requires a minimal initial investment and manageable monthly fees. There are different types of leases available, and 1st Providers Choice will help you determine which one best meets the needs of your organization.
- Finance Lease: Also known as a capital lease, this type of arrangement allows healthcare providers to make monthly rental installments for the duration of the lease. At the end of the term, the EMR (or other leased items) can be purchased for a previously stipulated amount.
- True Lease: This is similar to a finance lease, except the provider will never have the option to purchase the EMR and must continue making monthly installments for as long as he chooses to use the software. Payments are usually tax deductible and tend to be lower than with a finance lease.
- Operating Lease: This is a short term lease – usually under three years and often used with technological equipment. Similar to a true lease, the EMR vendors assumes the residual risk associated with asset ownership, allowing for a lower, usually tax deductible, monthly payment.
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