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How to Conduct a Third-Party Application Assessment During an Electronic Medical Record (EMR) Transition

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Oct 11, 2024

How to Conduct a Third-Party Application Assessment During an Electronic Medical Record (EMR) Transition

Jena Ward

Written by Jena Ward

Category: EHR

When an organization undergoes an Electronic Medical Record (EMR) transition, merger, or acquisition, it has the opportunity to assess all third-party applications for their relevance. Third-party applications refer to those systems that operate outside of your EMR and may or may not be integrated with it. These applications work well in your current environment and are typically niche systems for that specialty.

The first step in your assessment should be to create a list of all third-party applications. The list should include information to support an efficient decision-making process around whether to retain or sunset the application.

 

Third-Party Application Information to Gather for Your Assessment

Application Information:
  • Application name
  • Vendor name
  • Software version
  • Server information (operating system version and type)
  • Current integration with other applications
Application Contact:
  • Vendor sales rep contact information
  • Department or service line owner
  • Brief description of software function/capability (what does it do and for whom?)
Contracts and Agreements:
  • Contract information (master service agreement)
  • Business associate agreement
  • Statement of work, renewal date, support terms, cost, and separation terms

More Due Diligence

Conducting thorough due diligence is essential to clearly define the scope of your organization’s third-party applications. To assist with decision-making and change management, it is helpful to create and leverage project guiding principles, such as “Epic First,” which means if the functionality is in Epic, Epic should be used. Three review categories should be undertaken to analyze these applications and establish their scope effectively. The categories to review are EMR-related, System-related, and Vendor/Contract-related. Follow this order to prioritize tasks properly. Prioritization is necessary to coincide with the build and test timelines of the EMR. For example, the applications pivotal to operations are assigned the highest priority. This is a labor-intensive but critical task that needs to be started immediately following the decision to switch the EMR, merge with another hospital, or acquire another hospital.

Typically, multiple third-party applications within the ancillary and revenue cycle areas will require review and assessment of their viability in the new operational environment. Such applications include transcription services versus direct entry solutions, long-term image/report storage, laboratory instrument integration, medical coding assistance, document management systems, claims clearinghouses, lock boxes, and appointment reminders.

Consider the following to drive your assessment:

EMR-related: focus on functionality
  • Is the application functionality within the EMR?
  • Does the EMR functionality meet your needs?
  • Is there duplication of functionality among other third-party applications?
  • Should this application be replaced with a different one?
  • Is an upgrade needed for additional functionality?
  • Should the application be interfaced with the new EMR?
System-related: focus on the components of the overall system
  • Will the server be virtual or physical? If physical, is it on-site?
  • Are hardware or software upgrades needed? What is the timing for those?
  • Are there active projects related to this application?
  • Will this version of software be compatible with the new EMR?
  • Does this application store patient information short or long-term?
  • Can the existing test system be used for production support and the new EMR project? Or should a separate test system be set up for the EMR project?
Vendor/Contract-related: focus on costs and client requirements
  • Review current contract: update master service agreements, business associate agreements, or support terms.
  • Are contract updates or a statement of work needed for vendor support during testing and go-live?
  • Will there be a cost for a medical record number (MRN) conversion if needed?
  • Schedule a meeting with the vendor to discuss the project timeline, resources, and cost.
  • Review all vendor quotes, statements of work, and contract updates before obtaining legal and purchasing approval.
There are several key items to keep in mind during this process:
  • New master service agreements take longer to review and negotiate.
  • Moving from decentralized (various departments) to centralized (IT) contract management will be challenging.
  • The project’s related contracts and statements of work should be prioritized for review and processing.
  • The third-party application review must take place in a timely fashion, or it will cause downstream delays on vendor resource assignment, interface build, system testing, and possibly go-live. These delays can be avoided with quick decisions on applications and vendor contract negotiations.
  • Know the timing of when vendor resources will be available.
  • Facilitate regular meetings with vendors to stay on track.

If your organization needs help assessing third-party applications, Impact Advisors provides unparalleled technical and operational expertise to maximize the value of your electronic health record systems. Talk to one of our experts today.