Reading review problem.Dr. Mohamed Ali is an internal medicine physician in Upland, California; his office employs two nurses and a physician’s assistant. Dr. Ali offers a variety of services, including smoking cessation and weight loss programs, in addition to his regular medical practice. In response to a trend that started as early as 2004, Dr. Ali maintains his patients’ medical records electronically using software from Cerner Corporation (www.cerner.com).
Consider the following comments about electronic medical records (EMR) technology:
[A study discussed in the Journal of the American College of Surgeons] reported that in just 16 months the University of Rochester (N.Y.) Medical Center recouped its initial $485,000 cost for an EMR system serving fi ve outpatient of ces and 28 doctors. The study compared actual before- and -after EMR costs of activities such as pulling and fi ling charts, creating new charts, and transcription. The savings with electronic medical records added up to $394,000 a year, meaning annual savings of $280,000 after operating costs, the study said.
Advantages of EMR include labor cost savings, improved records accessibility, and the ability to query databases of patient information. Although security and privacy issues create some concern, information security techniques like encryption can help address them.
Source: R. Roberts, “Electronic Records Provide Good Return on Investment,” Kansas City Business Journal, June 8–14, 2007, www.cerner.com/public/Cerner_2.asp?id _ 26328 (January 22, 2009).
a. How is the EMR system related to one or more of the business processes discussed in the chapter?
b. Why is it important for accounting professionals to understand organizations in a comprehensive way?
c. How does the EMR software and process relate to the five generic AIS elements?
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