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April 26, 2010

For the Record

Web Calculator Keeps Tabs on Stimulus Dollars

Medsphere Systems Corporation, a provider of open-source HIT solutions, recently unveiled a new Stimulus ROI Calculator designed to help hospitals make more informed, financially sound HIT decisions.

"This online calculator," says Medsphere President and CEO Mike Doyle, "demonstrates the ability of most hospitals to leverage federal stimulus dollars and totally fund a proven and comprehensive electronic health record solution, specifically Medsphere's OpenVista solution. Moreover, our rapid six- to nine-month implementation process assures OpenVista hospitals that they will be enabled to achieve meaningful use in time to qualify for maximum stimulus dollars. And to let hospitals know how committed we are to helping them achieve meaningful use and thereby meet federal stimulus requirements, we put one-third of our subscription fees at risk."

This automated ROI calculator uses Medicare and Medicaid discharge information to calculate the estimated federal stimulus dollars a hospital can qualify for by achieving meaningful use as defined by the American Recovery and Reinvestment Act (ARRA). The federal government is using ARRA in part to compel healthcare organizations to deploy and meaningfully use the HIT necessary to manage costs and improve patient care. The tool helps hospitals estimate five-year subscription fees for Medsphere's OpenVista EHR solution based on the data they enter [exact figures available upon request]. The calculator then automatically correlates two estimates—EHR fees and ARRA stimulus funds—to show hospital executives approximately how long it will take to recoup their EHR investment via ARRA.

To use the calculator, hospitals enter their Medicare provider number and bed size, and the tool automatically populates fields with pertinent Medicare and Medicaid discharge data. It also calculates the estimated ARRA stimulus funds each hospital qualifies for over the life of the stimulus program [fiscal years 2011 to 2014].

Hospitals can also estimate annual and five-year subscription fees for OpenVista implementation, support and services [the software is open source and therefore free] and then cross-reference available stimulus funds and OpenVista fees to help determine the exact time to return on their EHR investment. No hospital financial data are collected.

Several variables can impact the numbers the calculator produces, not all of which could be controlled for in creating the tool. The number of staffed vs. licensed beds may be a factor, for example, as well as how beds are categorized [acute vs. skilled nursing vs. long-term care]. The intent is to demonstrate the value of Medsphere's solution in terms of overall cost compared with the estimated amount of ARRA stimulus dollars a hospital can receive.