Practice Management Alert

4 reasons why an application solution provider might be the solution for you

Low start-up costs, hassle-free maintenance, and reliable data backup are just some of the benefits making application solution providers (ASPs) an increasingly popular type of practice management system (PMS).
 
Ownership versus subscription: There is absolutely no difference between turnkey systems and ASPs in how the billing system looks and functions on your computers. The only difference is that with a turnkey system you pay in full for the software, load it onto your system and then the server is yours to use and maintain. With an ASP, however, you pay a monthly subscription fee that allows you to connect via a secure network to a central server that your ASP vendor maintains.

A prerequisite for ASPs, therefore, is reliable high-speed Internet access. If you have good Internet connectivity, then you're ready to look at what advantages an ASP will offer, says Eric Goldstein, CEO of Medical Practice Consultants LLP in Dunwoody, Ga.
 
Here's why an ASP might be the right choice for you:

1. Fewer maintenance headaches: An ASP vendor continually maintains and updates its server for the benefit of all its clients. This means you won't have to handle most problems with your PMS server and, as long as you subscribe to a reliable vendor, things should run smoothly. ASPs can be an especially great choice for smaller practices and practices with no information technology (IT) staff because they may be struggling to keep up with their PMS maintenance, Goldstein says.

2. The latest technology: The advantage with ASPs is that the vendor will always keep the server up-to- date with changes in technology, says Leonard McGugin, director of business development for Clinix Medical Information Services LLC in Brentwood, Tenn. Turnkey systems require you to buy new software or upgrade packages in order to come up-to-speed with PMS changes, such as the recent HIPAA-mandated transaction and code set standards.

With the rapid pace of change in technology, turnkey systems can quickly become outdated, McGugin says. In contrast, with an ASP you will be using the most up-to-date technology five years from now -- just as you are today -- without ever having to buy new software, he says.

3. Lower start-up costs: The decision to use an ASP will "allow you to get up and running faster" and will also reduce your hardware costs because you don't have to purchase a server, Goldstein says. Compare this to the lump sum you usually need to pay up-front for a turnkey system.

With an ASP, you may still have some fees for doing statements, recall notices, and other services you'd normally take care of with a PMS via a clearinghouse. What you won't have is an annual maintenance fee -- that gets bundled in with your ASP's monthly subscription cost. As for the long-term costs, you should really run the numbers to determine the cost difference over a three- to five-year period between buying a turnkey and an ASP, he says.

4. Better data backup: There's less risk of data loss with an ASP because most vendors back up everything on the server, Goldstein says. Practices that use a turnkey system often have misused and improperly stored backup tapes. This is yet another PMS responsibility that an ASP takes off your hands. The ASP vendor is responsible for "running a backup for you so your data is never lost," he says.

What to Watch Out For

In addition to the standard decision-making process to choose the best model for your practice, you'll want to evaluate the following:

1. Server location: It's good to know where your ASP vendor is hosting its server. Some house their servers in a data center built with special reinforcements to guard against dangerous weather, such as hurricanes and lightening. Also, some companies host their server at co-locations, Goldstein says. This can keep your ASP up and running in the event of a power failure at one location.

2. Vendor profile: While some ASP vendors produce and host their own product, others actually resell an ASP product developed by another company. A vendor that resells an ASP acts as the middleman between the producer and the client. A vendor that resells is not bound to any specific ASP product and can, if it chooses, switch its focus to selling another ASP model, Goldstein says. If you sign up with a reselling vendor, you risk the possibility of declining service and eventual neglect if your vendor starts reselling a different system, he says. Therefore, ASP vendors that produce and host their own product may be a more secure investment, he adds.