Implementing a Custom EHR in a US Hospital Network: Driving $20 Million in Annual Savings

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Emerline developed and implemented a custom EHR solution that enabled one of the largest regional hospital networks in the US to achieve over $20 million in proven annual savings by significantly reducing administrative costs and enhancing operational and clinical efficiency.

Client & Background

Our client is a large, multidisciplinary hospital network in the US, ranking among the top 15 largest in its region by patient volume, with an annual turnover exceeding $5 billion. Its extensive operations span key Midwest states like Ohio, Illinois, and Michigan. The network comprises over 30 hospitals, 150 specialized clinics, and 200 outpatient centers. Daily, they serve tens of thousands of patients, providing a wide range of medical services from primary care to complex surgical procedures.

Historically, the client faced several critical challenges due to outdated systems and manual processes that negatively impacted care quality, operational efficiency, and financial stability:

  • Unsuitable off-the-shelf EHR solutions and high TCO risk

Despite attempts to implement standard EHR systems from leading vendors, these proved too rigid and inflexible to adapt to the unique, complex clinical workflows of multidisciplinary teams and various facility types (hospital, specialized clinic, outpatient center).

For example, standard modules couldn't effectively support specific protocols for managing patients with rare oncological diseases or multi-stage cardiac surgeries, requiring excessively expensive and labor-intensive customizations.

Such deep modifications to off-the-shelf systems often invalidated their standard certifications, creating high risks of HIPAA non-compliance with every update. This ultimately made the total cost of ownership (TCO) unacceptably high, with estimated additional annual costs for customizing and supporting third-party EHRs reaching $4-8 million without addressing the client's fundamental needs.

Estimated additional costs for customizing and supporting third-party EHRs could reach $4-8 million annually without yielding the desired results.

  • Fragmented medical records and lack of a unified patient view

Patient information was scattered across numerous disconnected systems: outdated EMRs (Electronic Medical Records) in different hospitals, paper charts in outpatient clinics, and separate systems for labs, radiology, and pharmacies. This led to a lack of a complete and up-to-date overview of a patient's medical history, hindering care coordination and increasing the risk of medical errors.

  • Low operational efficiency and high administrative burden

Clinical and administrative staff spent an excessive amount of time (up to one-third of their workday) on routine, repetitive tasks: manual data entry, searching for information across different systems, filling out paper forms, and faxing referrals. This reduced productivity, caused staff burnout, and increased operational costs.

  • Data security threats and HIPAA compliance complexities

Storing sensitive patient data in disparate, often outdated systems created serious vulnerabilities to cyberattacks and unauthorized access. Adhering to stringent US federal and state regulations for patient data protection, such as HIPAA (Health Insurance Portability and Accountability Act), as well as HITECH Act standards, was extremely labor-intensive and carried high risks of multi-million dollar fines for violations. The risk of HIPAA fines reached hundreds of thousands to millions of dollars per incident, not including reputational damage.

  • Lack of clinical decision support tools

Physicians lacked quick access to aggregated patient data at the point of care, as well as intelligent tools that could provide up-to-date clinical guidelines, drug interaction alerts, or potential allergy warnings. This increased the likelihood of errors in diagnosis and treatment.

  • Patient engagement challenges

Patients lacked convenient access to their medical records, lab results, online appointment scheduling, or secure communication with physicians, which reduced their engagement in the treatment process and overall satisfaction.

Facing the critical challenges outlined above, the client turned to Emerline.

Methodology

Our methodology was designed not just to implement a tool, but to ensure a profound transformation of patient care processes. Emerline adopted a patient-centric, Agile approach, focused on ensuring maximum data security and full compliance with US healthcare regulatory requirements. Our methodology emphasized a deep understanding of clinical workflows and aimed to create an intuitive user experience for healthcare professionals while ensuring the solution's scalability and customizability.

Comprehensive analysis of clinical workflows and data security

We began with an in-depth audit of current clinical, administrative, and integration processes across various departments of the hospital network. Intensive interviews were conducted with medical staff at all levels (doctors, nurses, administrators), department heads, and IT/security specialists. The goal was to identify "pain points," bottlenecks in information flow, and accurately define EHR requirements, paying close attention to HIPAA standards at every step of data collection.

EHR architecture and clinician UX/UI design

Based on the analysis, a highly secure, modular, and scalable custom EHR architecture was designed. Our approach focused on building a flexible microservices architecture, allowing independent development and deployment of modules without affecting core functionality or breaking certification. This contrasts sharply with the rigid, monolithic structures of many off-the-shelf EHRs, which necessitate costly, "breaking" customizations. A strong emphasis was placed on designing an intuitive user experience (UX/UI) for doctors and nurses, minimizing clicks and simplifying data entry at the point of care. The data architecture was designed to comply with interoperability standards (FHIR/HL7) for seamless information exchange.

Iterative development and implementation of core modules

EHR development proceeded in short, focused Agile sprints. We iteratively built and deployed key modules: a unified medical record repository, appointment scheduling functionality, e-prescribing, automated charting, and clinical note management. Each sprint included active participation from medical specialists in testing, ensuring alignment with real clinical needs and facilitating rapid feedback loops.

Development of clinical decision support systems and secure data exchange

AI/ML-powered clinical decision support systems (CDSS) were developed and integrated, providing physicians with relevant, evidence-based recommendations: drug interaction alerts, diagnostic prompts based on symptoms and lab data, and treatment protocol selection guidance, thereby enhancing diagnostic accuracy and therapeutic safety. For instance, our ML model for predicting sepsis risk, trained on historical data from thousands of patients, can predict the condition 12 hours before clinical manifestations with 85% accuracy, enabling physicians to take proactive measures. Additionally, an ML model was implemented to predict exacerbations of chronic diseases (e.g., diabetes, heart failure), allowing for proactive patient management and a reduction in emergency hospitalizations. We also developed a surgical scheduling optimization system that uses machine learning to reduce operating room downtime by 10-15%. In parallel, robust mechanisms for secure data exchange with external laboratories, radiology centers, and other healthcare providers were implemented, complying with HIPAA/HITECH requirements.

Integration with telemedicine, billing, and patient portal

The EHR was integrated with telemedicine platforms for virtual consultations, as well as with billing and revenue cycle management (RCM) modules to optimize financial operations. A secure Patient Portal was developed and launched, providing patients with access to their records, online appointment scheduling, and secure communication with providers.

Deployment, training, and ongoing support/compliance

After successful testing, the solution was incrementally deployed across all clinics and hospitals. An extensive training program was conducted for thousands of end-users. The project spanned 24 months, with an overall budget of approximately $20-22 million, which was recouped within 18 months after full launch. This rapid ROI was made possible by immediate savings from reduced administrative costs and increased efficiency. Post-launch, Emerline provides ongoing maintenance, support, and regular compliance audits to ensure the system consistently adheres to evolving US healthcare regulations, including Meaningful Use, MIPS, and state-specific mandates, reducing the client's internal burden for specialized IT and compliance teams.

Challenges and Approaches

  • Staff resistance: Personnel were accustomed to old systems and manual processes. We overcame this by conducting intensive training, creating "champions" among the staff who demonstrated the benefits of the new system, and actively soliciting feedback for iterative UI/UX improvements.

  • Data migration complexity:Transferring millions of records from disparate legacy systems presented a colossal task. We used automated ETL (Extract, Transform, Load) tools and strict data validation protocols to ensure the integrity and accuracy of migrated information, minimizing operational disruptions.

  • Integration with legacy systems:Some specialized medical devices and third-party systems (e.g., older radiology systems) did not support modern protocols. We developed custom adapters and API gateways to ensure seamless data exchange, avoiding costly equipment replacement.

Microsoft Azure integration

The solution is built on Microsoft Azure's scalable and reliable cloud platform, providing the necessary flexibility, security, and computing power to process large volumes of clinical data. The use of key Azure services (such as Azure Data Lake Storage for storage, Azure Data Factory for integration, Azure Synapse Analytics for analytics) ensured system resilience and high performance.

Development of predictive and ML models

To create an "intelligent" data foundation, we integrated advanced machine learning (ML) and artificial intelligence (AI) models using Azure Machine Learning and Azure Databricks. This enabled accurate failure prediction, process parameter optimization, and quality improvement, elevating analytics to a new level.

Data management and QA

A key aspect of our methodology was building a robust Data Governance system. We developed clear rules for data ownership, quality standards, and access policies that guaranteed the integrity, accuracy, and security of data at all stages, forming a "single source of truth."

Solution

We developed and implemented a custom EHR solution that became a centralized, highly secure, and intelligent platform for patient health management, completely transforming the client's operational and clinical processes.

Our custom EHR surpasses off-the-shelf solutions and typical customizations due to its inherently modular architecture and deep adaptation to the following aspects, providing a unique competitive advantage:

  • Specific clinical workflows

    We created specialized modules to support complex multidisciplinary consultations, integrate data with high-precision diagnostic equipment (e.g., genetic sequencers or specialized MRIs), and dynamic forms for managing patients with chronic diseases — features impossible to implement in standard systems without radical reworks. This allowed the client to offer unique medical services unavailable to competitors using generic solutions.

  • Flexible and intuitive UI/UX

    Interfaces were designed considering the individual needs of various specialties (surgeons, internists, nurses), significantly reducing training time and improving usability. This led to faster adoption and higher staff satisfaction compared to implementing generic systems.

  • Scalability at the data and functional level

    The architecture allows for easy addition of new clinics and specialized centers to the network without rebuilding the entire system, as well as integrating new medical technologies and modules. Since implementation, the client has successfully integrated 3 new clinics into the network, confirming the claimed scalability and saving up to $500,000 on each new connection by leveraging the ready, adapted infrastructure. This ensures the client's long-term investment sustainability and flexibility, allowing them to grow and adapt to future market demands without the need for major IT infrastructure overhauls, a critical distinction from "off-the-shelf" solutions with their update cycles and high TCO.

Unified patient medical records

A centralized, interoperable repository was created, integrating a patient's entire medical history: diagnoses, treatment plans, medications, lab results, and images. This provides a complete and up-to-date picture of the patient's health for any medical professional in the network.
Unified patient medical records

Automation of clinical workflows

The EHR system significantly optimizes routine tasks: automated appointment scheduling and patient routing, accelerated registration, automated charting, e-prescribing, and referral management, freeing up physicians' and nurses' time for direct patient care.
Automation of clinical workflows

Clinical decision support systems (CDSS)

Built-in AI/ML tools provide healthcare professionals with relevant, evidence-based recommendations: drug interaction alerts, diagnostic prompts based on symptoms and lab data, and treatment protocol selection guidance, enhancing diagnostic accuracy and therapeutic safety.
Clinical decision support systems (CDSS)

Secure data exchange and interoperability

The EHR supports FHIR (Fast Healthcare Interoperability Resources) and HL7 standards, ensuring seamless and secure data exchange with external laboratories, radiology centers, pharmacies, and other healthcare providers, which is critical for coordinated care in a distributed US healthcare system.

Integration with telemedicine and remote monitoring

The system includes functionality for virtual consultations, secure patient messaging, and integration with remote health monitoring devices, expanding healthcare accessibility.

Optimized billing and revenue cycle management (RCM)

Integrated functions automate service coding, insurance billing, payment tracking, and denial management, improving billing accuracy and accelerating revenue collection.
Optimized billing and revenue cycle management (RCM)

User-friendly and secure patient portal

Patients gain secure access to their medical records, lab results, online appointment scheduling, visit history viewing, and secure communication with their treating physicians, which enhances their engagement and satisfaction.

Advanced reporting and analytics for improved care quality

Built-in reporting and analytics tools allow for tracking clinical outcomes, assessing treatment effectiveness, analyzing operational performance, and comprehensive population health management, identifying trends and areas for care quality improvement.
Advanced reporting and analytics for improved care quality

Technology Stack

The solution is built on a highly reliable, scalable, and secure Microsoft Azure technology stack, compliant with the strictest US healthcare regulatory standards:

Backend and API

NET Core (C#)

Database

Azure SQL Database

Azure Cosmos DB

Data integration

Azure Data Factory

AI/ML Services

Azure Machine Learning

Cloud infrastructure

Microsoft Azure

Azure Kubernetes Service (AKS)

Azure Functions

Security and compliance

Azure Security Center

Azure Key Vault

Azure Active Directory B2C

Azure Private Link

Monitoring and logging

Azure Monitor

Azure Log Analytics

Frontend

React.js

React Native

Results

The implementation of the custom EHR solution led to fundamental changes in the hospital network's operations, directly improving the quality and safety of patient care, as well as optimizing operational processes.

Total annual savings and additional revenue due to Emerline's Custom EHR exceeded $20 million annually. These financial estimates are based on a detailed, third-party verified analysis of the client's operational expenses before and after implementation, as well as comparisons with industry benchmarks for similar improvements. All figures represent the cumulative benefit from various optimizations and do not contain double counting.

  • 25% reduction in administrative costs

    Automation of routine tasks (scheduling, data entry, billing) significantly reduced staff workload, freeing up resources for more critical tasks. This led to savings of up to $15 million annually in operational expenses.

    Before implementation, up to 1/3 of working time was spent on administrative tasks. A 25% reduction in this burden allowed for resource reallocation and avoided hiring additional staff, estimated at millions of dollars for a network of this scale.

  • 15% faster diagnosis time

    Instant access to unified patient data and CDSS support enabled physicians to diagnose conditions faster and more accurately, reducing waiting times and improving outcomes. This led to increased clinic and hospital throughput, boosting potential revenue by $2-4 million annually by serving more patients and facilitating quicker discharges.

  • 35% improvement in data accuracy and completeness

    Centralization and automation of data collection, along with built-in validation checks, significantly reduced errors and ensured the reliability of medical records. This led to an 8-10% reduction in insurance claim denials and a decrease in operational losses by $4-6 million annually, directly impacting financial performance.

  • Enhanced patient safety and improved clinical outcomes

    The implementation of CDSS and reduction in medical errors led to a 15% decrease in serious incidents (e.g., related to medication errors or untimely diagnosis of critical conditions). This contributed to safer treatment and a 5-7% reduction in readmissions (from a baseline of 18% to 11-13%), which is a direct indicator of improved care quality, resulting in savings of up to $1.5 million annually due to reduced compensation and expenses for additional treatment.

  • Full compliance with HIPAA, HITECH Act, Meaningful Use, and MIPS regulatory requirements

    Implemented security measures and automated reporting ensured 100% compliance, minimizing the risk of fines. This prevented potential penalties that could reach $500,000 - $1 million per incident in case of a serious violation.

  • 12% increase in medical staff productivity

    Reduced manual work and optimized workflows allowed doctors and nurses to dedicate more time to patients. This led to increased staff efficiency, equivalent to savings of up to $0.7 million annually on overtime or hiring, as well as increased staff loyalty.

  • 20% increase in patient satisfaction

    Improved access to information through the portal, simplified appointment scheduling, and telemedicine options enhanced patient engagement and their overall experience with service quality. Patient satisfaction surveys showed an average 20-point increase in the Net Promoter Score (NPS) (from a baseline of +30 to +50) within a year of implementation. High patient satisfaction is a key factor in increasing repeat visits and attracting new patients, estimated at $0.3-0.8 million in additional revenue annually.

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