The Impact of Electronic Health Records (EHRs) on Healthcare Accounting and Financial Management

Abstract

This paper aims to analyze the effects of EHRs on healthcare accounting and financial management with reference to cost, quality, and timeliness of data, and revenue cycle management (RCM). The major research questions included; examining the effects of EHR on operational costs, evaluating the quality of financial data, and enhancing the revenue cycle in healthcare organisations. Analytical research design was used, Exploratory Factor Analysis (EFA) was applied using AMOS software with sample of 100 respondents from the healthcare sector. The findings indicate that EHR systems improve the cost effectiveness of financial processes by optimizing costs and minimizing wastage through automation of accountancy operations. Further, EHRs enhance data credibility in financial reporting besides meeting the regulatory requirements of an organization. Another area that gains from EHR integration is the revenue cycle since it helps to increase billing productivity, reduce cycle time and cash flow. The results of the study demonstrate how EHRs can contribute to the modernisation of healthcare financial management with objective enhancements made to financial processes. Although the model fit indices are not perfect, it is clear that there are positive effects of EHR systems. Therefore, the study finds that EHR adoption is important for any healthcare organisation that wants to achieve better organisational financial performance and sustainability. Further studies may investigate other factors that influence the effectiveness of EHR systems and analyse the issues concerning their further deployment. In sum, the study argues that there is a great prospect of EHRs in improving healthcare accounting and financial management and, thereby, promotes financial operation reforms in the healthcare sector.