Practice Management Alert

Shop smart by asking yourself these 4 questions

Deciding to purchase a new practice management system (PMS) requires an in-depth analysis of your billing needs to ensure a smooth and affordable transition into your new system.

The main reasons for wanting to buy a new system are lack of customer support and lack of flexibility within the billing program, says Susan Billock with Certified Emergency Medicine Specialists PC in Grand Rapids, Mich. "As we all know, every [medical] specialty has [its] own little quirks," and not every PMS is specifically designed to accommodate those details, she adds.

Experts agree that you must ask yourself the following questions when considering a new PMS:

1. Is a turnkey system or an ASP better for our practice? There are two basic types of practice management systems: turnkey and ASP (Application Service/Solution Provider), says Leonard McGugin, director of business development for Clinix Medical Information Services LLC in Brentwood, Tenn. A turnkey system is software that you buy in full and load onto your computers. An ASP is a software system maintained on a central server that you connect to through a secure network over the Internet, McGugin says. There are advantages to both systems, depending on your practice.

Got Internet? ASPs are a growing trend, but turnkey systems are now more abundant on the market because they don't require high-speed Internet access, which is often an issue especially in rural areas, says Eric Goldstein, CEO of Medical Practice Consultants LLP in Dunwoody, Ga.

If you're concerned about Internet access and want full control over your billing software, a turnkey system may be the best choice. However, if your office has good Internet access, the benefit of an ASP is that your system is constantly being updated through the central server, so you'll always be using the latest technology, McGugin says. You'll pay a monthly "subscription" fee for an ASP, whereas you'll pay in full for a turnkey system and own it completely.

2. What functions and features will best meet the needs of our medical specialty and practice work flow? Each system will have slightly different features and capabilities that may not be apparent during a basic sales presentation by the vendor.

One size does not fit all: The biggest mistake people make is to think that any system will fit their practice, says Goldstein, who conducts professional analyses of PMS and advises clients on PMS purchases. Make sure the system you purchase allows you to perform all the functions your practice requires and create the custom reports needed to manage your business, he says.

3. Will our new PMS be compatible with an EMR system? Providers use an EMR (electronic medical records) system to document the clinical record, which then gets fed into the PMS in your office.

Did you know: EMRs are rapidly gaining popularity, and experts predict that eventually all medical practices will use one. "You need to find a practice management vendor that sells an EMR already (a lot of vendors now sell both packages)," or else be sure there's an EMR on the market that will be compatible with the PMS you buy, Goldstein says. Buying a PMS that won't be compatible with an EMR system later on is a poor investment, he says.

4. What will we really pay to switch systems? The truth is that switching systems can actually slow your billing process and cash flow during the first few months after making the switch. You need to allow time for staff to adjust to the new system, so you should schedule fewer patients during the first few weeks to avoid overloading your billing office, Goldstein says. Remember that there are also costs for staff training on the new PMS and for data conversion from the old system to the new one. Make sure your practice is in good financial shape before making the switch.

Expert advice: Hire an experienced PMS consultant to help analyze your practice needs, Goldstein says. This will save you time and money by streamlining your decision process and helping you avoid unnecessary vendor presentations that waste your office time.

Once you've chosen a system, go over the contract with a lawyer. "The contracts are always created in the vendor's best interest, not yours," Goldstein says. However, with expert guidance, you can modify the contract to your advantage.

For medical software reviews and ratings, visit www.ctsguides.com and click on "medical." For information on PMS consultations, visit Medical Practice Consultant's Web site at www.mpconsultants.us.