Dive Brief:
- Partners HealthCare said its lower operating and net income for the quarter ending Dec. 31, 2015, is due in part to expenses related to implementing an Epic EHR system.
- Peter K. Markell, company CFO, said the new system will set back its net surplus $200 million over three years from implementation costs.
- Those costs include the hiring of 600 employees and consultants, along with training expenses in order to launch the system.
Dive Insight:
Although the company posted higher revenue the first quarter of its fiscal year than the same period last year, it's operating income dropped to $12.8 million from $74.1 million a year earlier. The period ending Dec. 31 had a $37.5 million loss for the quarter from investment losses, compared to a net gain of $40.6 million for the same quarter the previous year.
According to STAT News, Brigham and Women's Hospital lost business last year when it implemented Epic software since the hospital had to reduce its schedule while employees learned how to use it. The hospital was $53 million short of its budget - its first budget shortfall in more than 15 years - from switching its EHR system. Two additional Massachusetts hospitals and one in the UK reported financial losses after implementing Epic systems.
Brigham and Women's Hospital is one of 10 hospitals within the Partners HealthCare System, which also includes Massachusetts General Hospital and 6,000 physicians. The Epic system cost Partners $1.2 billion, its largest investment to date, according to The Boston Globe.