Importance of EHR contract for medial practices and curcial aspects of it

April 16, 2014 1:59 pm

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Last Updated: March 11, 2026

Unmanageably complicated systems, confounding templates, expensive… the tirade goes on. The latest complaint that most medical practices have is opaque EHR vendor contracts. It is essential to scrutinize every little detail in the contract before signing on the dotted line.

Most physicians discover, much to their agony, that their EHRs are not certified to meet Meaningful Use deadlines or aren’t up to speed with current industry demands. So how do you ensure what you are signing isn’t going to push your practice down a bottomless pit.

Being a tough negotiator…

Remember that the only advantage you have is to walk away from the table. Most clauses in the contract can be negotiated such as limitation of liability, dispute resolution etc. Ensure that the contract clearly outlines the hardware and software products that are required to run the system. You don’t want nasty surprises later on.

Beware of limiting licenses !

There are licenses that limit corroboration and interfaces with other physicians or systems. There is no point in going to your vendor everytime you need to corroborate with ACOs or HIEs. To avoid paying an extra charge each time demand a license that offers more flexibility. Before you receive the user license there are a few questions you need to ask

  • Is the license fixed or renewable ?
  • Is there a single payment you need to make or is it phased out ?
  • Do any third party software in the system require a sub-license ?
  • How is “user” defined and how many users does the system allow ?
  • Are there any additional license fees ?

Sign your contract only after receiving full and correct details.

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Phased out payments work best !

 Prior to signing a contract, request a, phased out, payment plan. Pay a fixed percentage for every phase of the implementation and go-live process. Paying upfront could lead to a lackadaisical approach by the EHR vendor.

Systems that communicate…

Interoperability remains a key issue. A checklist of what your practice needs is fine but keeping in mind the bigger picture is often even more important. Signing up a highly proprietary and rigid system that doesn’t interface with other softwares and practices can prove to be a major headache in the long run. Before signing the contract ask your vendor to allow interfaces that facilitates disparate technologies, processes and systems to communicate with each other.

Providers need to communicate with other hospitals and organizations. And requesting for a more “open” system is the first step towards a more interconnected and communicative healthcare industry.

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