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Our practice has been paperless for a few years now, and I think the argument about saving money is a bit overstated ("How to Make a Paperless Office Work for You," June 1, 2005, p. 50).
Nevertheless, once you go paperless, you won't ever want to go back.
Our group gradually went to an electronic medical record (EMR) system. When we started out by scanning billing reports that had to be transmitted electronically, EMR systems were essentially transcription systems with some scheduling thrown in, and the scheduling software wasn't so good. Eventually, another go-round with vendors turned up what we needed, with very good inter-functionality.
You have to be prepared for six- and seven-figure expenditures when you do this. We went from a minicomputer with dumb terminals to multiple servers and desktop PCs, plus all the necessary backup hardware. Software, training, licenses, and maintenance contracts add to the expense.
We also went at the implementation gradually. It didn't make sense to scan each old chart into the system. Instead, we focused on patients we would see soon, and scanned their charts. This required hiring a temp (more expense).
Trying to account for all the expenses would be a daunting task. I'm not sure I would trust anyone's assessment as to the cost-effectiveness of the conversion process and subsequent operation. Even after you're done, count on software and hardware upgrades.
But conversion to EMR has had advantages that we now see as essential: