Expensive EHR Implementations Threaten Hospital Credit Ratings

Huge capital outlays for  electronic health record (EHR) implementations are threatening the credit ratings of some large medical systems by tying up large amounts of cash and temporarily reducing profits, Becker's Hospital Review reported.

The financial challenges are not insurmountable and most hospitals should recover fairly quickly, according to the article. The biggest problems occur when EHR implementations cost more than expected, driving up accounts receivable, or if costs strangle a hospital's cash flow, Jim LeBuhn, director of the nonprofit hospital group for Fitch Ratings, told the publication.

Hospital finance managers can minimize the negative impact by communicating expected financial challenges related to EHR implementation, LeBuhn said. "From our standpoint, when a problem does arise, communicate that to us," he told Becker's. "We understand these are not easy installs."