Vendor Selection Criteria: Vendor assessment

Most vendors typically fall into one of the three categories:

1. Vendors that develop their own software organically on a single source code, one database, single instance.
2. Vendors that may operate under one name, but offer several acquired products, including some custom programs.
3. Vendors that have been acquired/sold/merged as a means to stay more competitive.

The first category of vendor is less likely to run into major market conflicts to keep its software modern and compliant with regulations. Vendors that operate on a single source code have far less difficultly staying current and/or responding to rapid changes in the market and mandated IT standards.

• Vendor viability must be checked. Will the vendor be around in nine years (the average life span of a significant IT investment)? If not, can the organisation live without them? Evaluations by neutral third-party analysts like Gartner, Chilmark, KLAS, and The Advisory Board must be considered to see what these analysts are saying about the vendor’s prospects in the market. Questions about vendors viability must be considered such as: Is the vendor in solid financial shape? What’s their monthly burn rate vs. income? How many days cash-on-hand do they maintain? What does their sales pipeline look like? Does the vendor’s executive leadership team have a track record for jumping from one company to another or do they have a track record of longevity and success? How much is the vendor spending on sales staff in comparison to engineering and product development staff? The best products are supported by a very lean sales staff. That’s because great products sell themselves.

• EHR Goals must be set. Goals should be specific, measurable, attainable, relevant, and time bound.

• Key Decisions should be made by making a list of potential deal-breakers such as deciding whether EHR data should reside in-office, a vendor server, or in web-based storage (“cloud storage”). To help form a list of potential deal-breakers, vendor websites should be researched. Making key decisions up-front will enable a practice to effectively narrow the field..

• Asking about product experiences and user experiences are crucial before selecting a vendor.

• An EHR evaluation tool should be utilized before selecting a vendor. EHR evaluation tools can be obtained from medical societies.

• Online form from HRSA available for establishing EHR specifications to help in vendor section. The form's name is 2011 EHR Selection Guidelines for Health Centers and can be downloaded from www.HRSA.gov
• Requesting a demo from the vendor keeps a potential buyer informed on prospective features an EHR possesses.

• Asking if the vendor is committed to training the institution's in house staff.

• Is there capability to tailor current features of EMRs to enable a smoother changeover from paper to electronic records and to facilitate meeting the criteria for meaningful use.

• Will the EHR meet present and future requirements? How user friendly is the EHR?

• Which category do you fall under should be one of the first questions you ask. Are you a small practice 1-15providers, a medium practice 15-100providers, or a large practice greater than 100providers ? Once size of practice has been determined including the potential to reach the size should help you narrow down as to which vendors might best suit your needs.

• Percentage of research and development reinvested into the company.

• Life cycle state or maturity of EHR system products should be asked(i.e., the occurrence of software obsolescence)..

• Frequency of software product updates..

• Customer support availability..

• Certification status of the EHR..

• Setting goals before selecting an EHR. The goals should be specific, measureable, attainable, relevant, and time bound. Having these goals will guarantee that your organization benefits from the EHR.

• Make a rundown of potential issues and choose where you wish to have your EHR data to reside. Whether you need your EHR information to reside in a live in-office, a vendor server, or web-based storage. Making this list before selecting an EHR will help your practice to narrow the field.

• Plan site visits. Ask vendors for a list of practices that have successfully implemented the EHR. At site visits it is important to have a list of questions for the practice during, before, and after implementation of the EHR.

• No vendor can offer all possible services and products. Therefore, it is important to assess if an ecosystem of partners exist for the selected vendor. Is there active developer program? Does the vendor use an open strategy or single a source strategy?

• A good vendor should have a healthy management team that keeps it growing and improving. Does the vendor have stable, visionary and efficient management team?

• We certainly do not wish to select a vendor that may bankrupt in the near future. Does the vendor have resources to compete in the market and likely to win in the future?

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