Be careful what you wish for….
Another vendor nightmare: Obama throws $19 bill at hospitals and docs to get with
EMR systems – from a vendors perspective what could be wrong with that?
The ‘effectiveness’ or ‘meaningful use’ criteria are vague and won’t even be
preliminarily defined until 12/31/09. Then they are to be refined over the next two
years. So if you buy a new EMR /CPOE system, or new system component how do
you know it will comply with whatever definition the feds come up with for
‘effectiveness’? Consultants and HIMSS staff say; get a contract guarantee stating
the vendor will meet any government effectiveness requirements.
If any vendor is desperate enough to sign such a contract his lawyers will all have
heart attacks. Here’s why.
Under Sarbanes Oxley if there are any contingencies in a contract, particularly
significant ones, than the vendor cannot book any of the contract revenues until all
those contingencies are addressed. Even if the system is up and running for a year
and everybody is happy and all the vendor invoices are paid in cash! So, if I am a
public company such as Cerner, Eclipsys, GE, etc, I will have a very long wait to
book any revenues.
The guys who don’t care are the private ones like Epic and Meditech. They can wait
to make revenue accounting entries, no quarterly Wall Street pressure there. As
long as they got the cash they need to pay the bills they’re happy.
The Kelzon Group