Healthcare SaaS Vs. Licensed Software
In case you haven't noticed, there's been a big movement in IT towards SaaS (software-as-a-service) applications — this is particularly true in healthcare. SaaS is a model of software deployment whereby a provider hosts an application and allows a customer to access the solution on demand. SaaS versions of several healthcare applications, including practice management software, EMR (electronic medical record) and EHR (electronic health record) software, and revenue cycle management software have begun to sprout up over the past few years. And, it's not just new companies that are waving the SaaS banner. Earlier this year, established healthcare information management vendor NextGen announced the availability of subscription-based, SaaS versions of NextGen EHR and NextGen EPM (electronic practice management) products. While many healthcare IT professionals have been eager to leverage tools based on the SaaS model, others have been more skeptical, and for good reason. Choosing between a SaaS and a traditional licensed or "on-premise" solution is an important decision, and a healthcare organization needs to weigh several factors before selecting the model that's best for them. The following are some key points to consider when evaluating between SaaS and on-premise platforms.
SaaS Offers Cost, Resource Advantages
Until recently, most of the activity surrounding SaaS applications in healthcare has been with smaller hospitals or medical practices. There are several reasons for this. One is cost. SaaS applications are based on a pay-for-use model, meaning a hospital or practice pays a monthly fee for its employees to access the system. This model eliminates the need for a significant upfront capital expense, and in many cases, this monthly fee looks extremely attractive when compared with the big sticker prices of many licensed-based systems. For example, the monthly fees for the NextGen SaaS products start at $599 per provider for one product and $799 per provider for both products. In addition, some SaaS vendors will allow a practice to download all the necessary pieces and components to test the software free-of-charge for a 30-day trial period — a luxury not extended (or even possible) with most on-premises systems.
Another benefit of SaaS is it requires little to no IT support. When you subscribe to a SaaS service, you don't have to dedicate your in-house IT staff to implement the solution or hire a systems integrator to install and integrate the product with your existing applications. Plus, all periodic software upgrades are executed for you by the third party providers and all content is regularly backed up at an off-site location.
Security, Scalability Concerns Still Surround SaaS
With the advantages of SaaS stated above, what's the downside? Well, one involves security and control. While most SaaS ECM (enterprise content management) providers allow for permissions-based security rules and even include two-factor authentication and encryption of all data being exchanged between the client's server and the SaaS provider's, the fact remains that (in most cases) your data will be stored in an off-site facility, which arouses patient privacy concerns. Furthermore, you have little to no control over the disaster recovery and business continuity protocols the SaaS vendor places on your data. It's the same disaster recovery strategy for all clients that subscribe to the service.
The scalability of SaaS applications has also been called into question. While most SaaS providers claim to be able to scale to handle the service needs of healthcare facilities of any size, some question these platforms' value for businesses with a large volume of users. In addition, the cost advantage of a SaaS solution diminishes with the more users you have. A final point to be aware of with SaaS options is since the software is designed for ease-of-use and mass-market consumption, some on-demand software packages aren't as feature-rich as their in-house counterparts. As a result, a SaaS solution may be ill equipped for unique customization. Determining if on-demand or on-premises ECM is the solution for you requires you to look at the nature of your business. For example, are you a small practice or hospital with a limited number of users and limited IT support? If so, then the cost and resource advantages of SaaS may be too attractive to ignore. On the other hand, if you're a larger hospital or integrated healthcare network, then it's likely you may have some more sophisticated requirements in an HIM (health information management) system than most SaaS options can provide.
If you determine that a SaaS solution is right for you, make sure the SaaS software you select is built using open standards. This will allow the software to be more easily integrated with other applications and will enable you to migrate your data to an on-premises solution if or when you decide to implement an in-house system.