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Switching Costs Thursday, June 16, 2011 Here is a flaw in the thinking of many practices that are now adopting EHRs for the first time. They pick a low end product because it has a low price. By low end, I specifically mean a product with a small to tiny installed base, that is backed by a small company lacking the resources to stay in this game for the long haul, that has no real differentiating feature that gives the product a shot to make it. The rationale goes something like this: 'Well, if it doesn't work, we'll just switch. Besides, we are not investing a lot in this product.' However, as any practice who has been on an EHR for any period of time will tell you, the cost of switching goes up every day. Every day, you put more data into the flawed system, every day your staff and physicians hardwire their brains to match the flawed software, every day you morph your business operations to fit with the flawed software. There are many practices that live with this reality every day. They are on a flawed product. They know their vendor is either dead or dead man walking. They know they need to switch, but the switching costs are high, so they continue to limp along. If you are just getting into this game, don't fall for the flawed logic. Switching costs are why you need to get this decision right. |
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