EHR Software Implementation Cost: A Full Guide

EHR Pricing in Brief

The costs of implementing a custom EHR system depend on the required interoperability, device compatibility, scalability, compliance, and, most importantly, functionality. For instance, developing automated data entry, dictation, and AI diagnosing features may increase the investments twofold compared to implementing a basic feature set. However, the advanced features may reduce data entry time by 72% and lead to a faster return on investment.

The average cost of custom EHR software implementation ranges from $400,000 to $2,000,000. You are welcome to use our free EHR implementation cost configurator to learn how much your solution will cost.

Key Cost Factors for EHR

No two EHR implementation projects are the same, so the cost will differ for each provider. Below, ScienceSoft’s consultants list the main factors to consider during EHR project budgeting.

EHR features as a key cost factor

Functionality is essential for calculating EHR costs. For your convenience, ScienceSoft categorized EHR features into three common packages and defined the potential cost ranges.

Patient records management.
Patient treatment planning.
E-prescribing.
Physician referral management.
Billing and claim management.
UX and UI tailored to doctors’ and nurses’ convenience.
Basic operational and financial analytics (e.g., the total number of inpatients, staff workload, billing process duration).
Knowledge base for medical staff.
Patient consent management.
Cybersecurity features (e.g., end-to-end data encryption, multi-factor authentication).

$400,000–$450,000

Features tailored to a medical specialty (e.g., mental health, cardiology).
AI-powered virtual assistant for medical staff.
Integrations with healthcare IT systems (e.g., HIE, CRM, telemedicine apps).
In-line suggestions of billing codes.
Patient eligibility check and insurance verification.

$400,000–$800,000

AI-based clinical decision support (for diagnosing and treatment planning).
Automated generation of billing reports and explanations of benefits (EOB).
Faster data entry using speech, handwriting, and image recognition.
Predictive analytics for operational, financial, and care-related decision-making (e.g., predicting admissions to optimize staff schedules).
Integrations with medical devices (e.g., MRI scanners, patient monitoring devices).
Interpretation of medical images.
Blockchain-based health records storage.

$600,000–$2,000,000

Other cost factors

Interoperability requirements

Integrating EHR with market-available software products that already have dedicated APIs (e.g., Dynamics 365-based CRM) is going to be relatively cheap. In contrast, connecting EHR to legacy systems, medical devices, or enabling health information exchange with other providers (using HL7, FHIR, etc.) requires custom coding and incurs higher costs.

Device compatibility requirements

An EHR system available on desktops only will cost less than software with smartphone or tablet access capabilities. Furthermore, developing separate native iOS and Android EHR apps is more expensive than building a single cross-platform mobile app.

Number of users and scalability needs

Building an EHR on a scalable architecture that can accommodate a growing volume of users over time is more expensive initially but will reduce the redevelopment and maintenance expenses in the long run.

Data storage deployment method

EHR systems collect lots of patient records, medical images, test results, and billing data that can be stored on-premises or in the cloud. Cloud storage is easier to scale and cheaper to maintain (especially with discounted instance types), but you will need to consider compliance when choosing a cloud provider.

Are there any hidden expenses?

ScienceSoft’s healthcare IT consultants also factor in the chosen technology stack, EHR accessibility requirements, and compliance-associated costs (e.g., related to ONC’s Health IT Certification Program). After the EHR is released to the production environment, there will be infrastructure, maintenance, and support costs. At ScienceSoft, we have a 1-to-3-month warranty policy as a part of the development contract to help our customers resolve any post-launch issues and smoothly onboard EHR users.

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Cost vs. ROI: Is Custom EHR a Worthy Investment?

The majority of lower-cost basic features are covered by off-the-shelf EHR products, so choosing Epic or athenahealth may be a good option for smaller hospitals and practices.

However, market-available EHR software often fails to reflect the complex internal processes and business needs of large healthcare providers. Unlike off-the-shelf solutions, custom EHRs can be built around each organization’s workflows, have specialty-tailored functionality, and automate the daily routines of medical staff (data entry, diagnosing, etc.).

Research shows that embracing advanced functionality and associated development costs pays off in the long run:

	Automating PHI input (including data entry from integrated systems) can improve medical staff efficiency by 2x as, according to research by the University of Wisconsin, clinicians spend more than one-half of their workday on EHR data entry.
	Implementing AI assistants for EHR costs around $70,000–$250,000 and leads to a 72% decrease in time spent on clinical documentation, lower physician burnout, and reduced turnover.
	Embedding AI-based claim management functionality into EHR can reduce claim denials by 22% and free up to 30 hours per week for the administrative staff.

How ScienceSoft Optimizes EHR Development Costs Without Compromising Quality

Over the two decades of experience in healthcare IT, ScienceSoft has defined the key steps to implementing EHR with an optimal cost-benefit ratio.

Designing with compliance in mind

We outline the applicable compliance requirements from the very start and create the necessary software documentation as the EHR development project progresses. It helps us avoid additional efforts and delays for EHR solution submission (to the ONC, FDA, MDR notified bodies, etc.).

Using reliable ready-made APIs

Instead of developing APIs from scratch, we use off-the-shelf APIs (e.g., Google’s Healthcare API) and practical experience with HL7, FHIR, and DICOM standards to optimize the costs of implementing EHR interoperability.

Applying mature project management practices for timely EHR delivery

ScienceSoft’s certified project managers use a practice-proven approach to managing project scope, risks, collaboration flow, and deliverable quality. Combined with solid CI/CD practices, it helps release the EHR 20–40% faster.

Check how ScienceSoft implements EHR systems leveraging healthcare IT project management best practices.

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Examples of EHR Software We Developed

EHR Adoption Barriers

Even though, according to ONC, 78% of office-based physicians and 96% of non-federal acute care hospitals adopted EHR, some healthcare providers are hesitant to adopt or change an EHR. Besides the disruption to the familiar workflows, the main concerns often revolve around potential data security and compliance with HIPAA, GDPR, etc.

At ScienceSoft, we prioritize security from the very start of the EHR development project and follow ISO 27001 and ISO 27701-certified processes and policies.

About ScienceSoft

Founded in 1989, ScienceSoft is an IT consulting and software development firm headquartered in Texas, US. We have specialized in the healthcare IT domain for 19 years and have successfully delivered reliable and advanced EHRs.

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