Practice Fusion’s free health record system for docs

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When Dr. Michael West decided to make his endocrinology practice a “paperless” office, he had no idea what he was getting himself into.

He and practice manager Ken Harrington researched electronic health record systems throughout the fall of 2009, ultimately sinking tens of thousands of dollars into a complex EHR system for the growing Washington D.C. medical practice.

What it actually provided, however, was a disaster. Within two months of installing the system, West jettisoned it and headed back to the drawing board.

One night, Harrington and West were looking up EHR systems online and came across Practice Fusion. On a whim, they decided to try it. Now scheduling appointments, prescribing medications, storing and pulling up medical histories, preparing home care instructions for patients – none of it generates paper. West says the improved efficiency has allowed him to reduce staffing and cut hours from his work day.

That’s what Practice Fusion CEO and founder Ryan Howard had in mind when he left his position developing a claims management system for a large medical group. Too much technology was going into medical payment systems, he feared, while very little was being focused on the records that actually make a difference in patients’ lives. And that wasn’t about to change, he worried, because most medical practices are small businesses unable to hire dedicated IT personnel. With EMR systems starting around $50,000, most doctors simply couldn’t afford to go digital.

“Ninety percent of doctors do have a computerized billing system, but 90% of doctors don’t have an electronic medical records system,” he says. “That means the focus is on getting paid, not on healthcare.”

Practice Fusion initially planned to charge doctors $300 per month to use its web-based software, but Howard quickly dropped all charges. Physicians now use Practice Fusion for free and the company has started to make money by analyzing the generalized health data that they pour into the system each day. Already, more than 70,000 users with a total of 9 million patients are benefiting from the software, while on average 350 more users sign up each business day. In addition to transforming existing businesses, Practice Fusion’s service has helped to create entirely new enterprises.

Nurse-practitioner Raymond Zakhari says the service has let him create “a turn-key hospital in a backpack” with which he now conducts house calls throughout New York City. Using Practice Fusion, a laptop with a wireless connection, and a few basic medical tools, Zakhari can do physical exams, collect blood samples, prescribe medications, and track a patient’s progress without ever making them leave home.

And because his company, Metro Medical Direct, has few overhead costs, Zakhari says he can be profitable with only two house calls per month.

“I can take care of documentation without carrying around pounds of papers,” he says. “I can see a patient’s chart, so I’m not prescribing blindly. I can send prescriptions to any pharmacy and because so many of them deliver, the patient can have the medication in just a couple of hours. That’s better than some hospitals can do.”

[Image via The National Guard/Flickr]

  • http://twitter.com/Morgenthaler_V Morgenthaler

    The two doctor usage examples really bring the power of Practice Fusion to light. Congrats Ryan and the Practice Fusion team!

  • http://profiles.google.com/kpatel10000 K Patel

    Good to show their approach but keep in mind, they reserve the right to sell data that they collect. Not many people who use the service know that. I doubt many of them would use it if they knew about it.

  • http://twitter.com/jraedupree vbcontributor

    Yes, I asked Practice Fusion about that. The company sells the data cleansed of identifying information and in very large chunks. So, for instance, it would not be possible to identify the doctor or the hospital who collected any particular record, nor would it be possible to match any individual to their medical specifics. The idea is to create data sets that can be used for medical research, development of automated diagnostic tools, and the like.

  • http://profiles.google.com/jeffgrossman999 Jeff Grossman

    I know doctors who use Practice Fusion. They really get tired of all the adds on the freeware. They wind up switching to the pay model. Also, I do not believe for a second that 70,000 physicians are using Practice Fusion. There are about 800,000 doctors in the US. Is this article trying to tell us that 10% of all US doctors use Practice Fusion? Yeah right.

  • http://www.facebook.com/jraedupree vbcontributor

    Yes, Jeff, you are correct. That was my slip-up and I'll get it changed right away. There are 70,000 users of the system, which includes front-office and support personnel. There are 28,000 doctors. Thanks for pointing that out!

  • http://venturebeat.com/2012/12/30/health-tech/ Med tech’s top 10 stories from 2012 | VentureBeat

    [...] The story: ”‘Ninety percent of doctors do have a computerized billing system, but 90 percent of doctors don’t have an electronic medical records system,’ said Practice Fusion CEO and cofounder Ryan Howard. ‘That means the focus is on getting paid, not on healthcare.’” [...]

  • http://wikisis.com/2012/12/30/med-techs-top-10-stories-from-2012/ Med tech’s top 10 stories from 2012 | Wikisis

    [...] The story: ”‘Ninety percent of doctors do have a computerized billing system, but 90 percent of doctors don’t have an electronic medical records system,’ said Practice Fusion CEO and cofounder Ryan Howard. ‘That means the focus is on getting paid, not on healthcare.’” [...]

  • http://www.socialnetworkbackgroundcheck.com/med-techs-top-10-stories-from-2012/ Med tech’s top 10 stories from 2012 | Social Network Background Check

    [...] The story: ”‘Ninety percent of doctors do have a computerized billing system, but 90 percent of doctors don’t have an electronic medical records system,’ said Practice Fusion CEO and cofounder Ryan Howard. ‘That means the focus is on getting paid, not on healthcare.’” [...]

  • http://keeprss.com/2012/12/30/med-techs-top-10-stories-from-2012/ Med tech’s top 10 stories from 2012 | KeepRSS

    [...] The story: ”‘Ninety percent of doctors do have a computerized billing system, though 90 percent of doctors don’t have an electronic medical annals system,’ pronounced Practice Fusion CEO and cofounder Ryan Howard. ‘That means a concentration is on removing paid, not on healthcare.’” [...]

  • http://venturebeat.com/2013/02/22/carecloud-the-cloud-based-health-record-company-reports-tripling-revenues/ Cloud-based health record company CareCloud reports tripling revenues | VentureBeat

    [...] showing significant growth. Practice Fusion is another company generating buzz. It has offered a free medical record system, deciding it better to attract doctors that way, and then make money by offering analytics on the [...]

  • http://www.thecapitals.com/carecloud-the-cloud-based-health-record-company-reports-tripling-revenues/ The Capitals™ – Capitalists' Magazine | 資本家札記 | CareCloud, the cloud-based health record company, reports tripling revenues

    [...] showing significant growth. Practice Fusion is another company generating buzz. It has offered a free medical record system, deciding it better to attract doctors that way, and then make money by offering analytics on the [...]

  • http://www.crowdbacon.com/blog/cloud-based-health-record-company-carecloud-reports-tripling-revenues/ Cloud-based health record company CareCloud reports tripling revenues | CrowdBacon – The Startup Blog

    [...] showing significant growth. Practice Fusion is another company generating buzz. It has offered a free medical record system, deciding it better to attract doctors that way, and then make money by offering analytics on the [...]

  • http://5forbiz.dev-shell.us/start-ups/cloud-based-health-record-company-carecloud-reports-tripling-revenues/ Cloud-based health record company CareCloud reports tripling revenues | 5 For Business

    [...] showing significant growth. Practice Fusion is another company generating buzz. It has offered a free medical record system, deciding it better to attract doctors that way, and then make money by offering analytics on the [...]

  • http://henq.net/2013/02/cloud-based-health-record-company-carecloud-reports-tripling-revenues/ Cloud-based health record company CareCloud reports tripling revenues | HenQ Venture

    [...] showing significant growth. Practice Fusion is another company generating buzz. It has offered a free medical record system, deciding it better to attract doctors that way, and then make money by offering analytics on the [...]

  • http://www.thecapitals.com/cloud-based-health-record-company-carecloud-reports-tripling-revenues/ The Capitals™ – Capitalists' Magazine | 資本家札記 | Cloud-based health record company CareCloud reports tripling revenues

    [...] showing significant growth. Practice Fusion is another company generating buzz. It has offered a free medical record system, deciding it better to attract doctors that way, and then make money by offering analytics on the [...]

  • http://www.socialnetworkbackgroundcheck.com/cloud-based-health-record-company-carecloud-reports-tripling-revenues/ Cloud-based health record company CareCloud reports tripling revenues | Social Network Background Check

    [...] showing significant growth. Practice Fusion is another company generating buzz. It has offered a free medical record system, deciding it better to attract doctors that way, and then make money by offering analytics on the [...]

  • http://www.fortsec.com/cloud-based-health-record-company-carecloud-reports-tripling-revenues/ Cloud-based health record company CareCloud reports tripling revenues

    [...] showing significant growth. Practice Fusion is another company generating buzz. It has offered a free medical record system, deciding it better to attract doctors that way, and then make money by offering analytics on the [...]

  • http://fortsec.wordpress.com/2013/03/02/cloud-based-health-record-company-carecloud-reports-tripling-revenues/ Cloud-based health record company CareCloud reports tripling revenues | fortsec

    [...] showing significant growth. Practice Fusion is another company generating buzz. It has offered a free medical record system, deciding it better to attract doctors that way, and then make money by offering analytics on the [...]

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