Crystal Stanton

Cloud-based EHR vs. in-house EHR: Key differences

April 25, 2022
By Crystal Stanton

Electronic Health Records (EHR) are an important part of the health care industry today. Many times, organizations are faced with the choice of whether to subscribe to a cloud-based service or host its EHR software in-house. Each option comes with benefits and challenges.

So, how do you determine which is best for your organization? It is important review the specific characteristics of both cloud-based EHR and in-house EHR in order to make the best decision for your organization.

Cloud-based
Cloud-based systems are hosted on a shared server and accessed via the internet remotely. Accessing software this way comes with several advantages, the first being ease of implementation. Since cloud-based software is hosted elsewhere and accessed through the internet, there is no hardware or software to install, making for a more efficient implementation and a faster return on investment. Another benefit of cloud-based software is the cost savings when it comes to cost of implementation. Because there is no need for hardware or software installation, implementing cloud-based software requires a small start-up cost and the regular subscription fee which is typically more affordable than the up-front implementation costs for in-house software.

When accessing your EHR through the cloud, your IT requirements are reduced because the vendor handles maintenance and security on their end. This also helps reduce the organization’s need for an in-house IT team to install, configure, and update hardware and software. Increased flexibility is another advantage of cloud-based software. Because the EHR is accessed through the internet, providers are not limited in the locations where they can access their system. Smartphones and tablets are both fair game, even away from the office, which helps providers work on the go as needed. Adding another user with cloud-based software is also as easy as adding log-in credentials.

In-house
In-house software is hosted locally within your facility on your own private network. Many organizations prefer in-house software to the cloud because it allows for more control. When dealing with in-house software, organizations will have its own IT maintain security and keep everything functioning. Organizations can control how and where the data is stored, including infrastructure configurations, allowing an organization to customize this setup to its specific needs.

Another benefit is that an organization can access its system even if the internet goes down. These types of situations should be rare, but for organizations located in areas where they have trouble with the internet, they will likely prefer to keep their software hosted in-house. There is also a difference in cost between cloud-based and in-house software. The greatest difference here is not so much in amount, but rather in timing. In-house software requires a greater up-front investment, which some organizations may dislike, but over time the cost is less. Cloud-based systems require a monthly fee over the lifetime of the software’s use, meaning an ongoing expense that some organizations may want to avoid.

Making your decision
For most organizations, the decision between cloud-based or in-house software will likely come down to two factors: cost and reliability. For cost, while there is a slight difference depending on vendor in the amount of cost between in-house and cloud-based, the biggest difference is in the timing of cost. In-house software will require a larger upfront investment in hardware, software, and setup, whereas cloud-based systems require a much smaller up-front investment followed by the monthly subscription fee. Choosing which situation is best will vary for each organization.

When it comes to reliability, cloud-based systems have gained somewhat of a reputation for being less reliable over the years, but in practicality, that is not the case. If an organization has a reliable high-speed internet connection, issues with connectivity should be few and far between. That connectivity is not much of a consideration when it comes to in-house software, so for organizations that are in areas with subpar internet service, in-house might be better to avoid service interruption.

EHR software is important to a health care organization’s success, and it’s imperative that each organization choose the best method for accessing this software for its setup. There are a lot of factors to consider, but neither option is better than the other. It is purely up to the organization’s preference and circumstances. What is most important is for each organization to analyze its own situation and determine which method fits best, implementing a software that will enable a practice to run seamlessly and efficiently, while providing the best possible care to their patients.

About the author: Crystal Stanton is a digital marketing specialist at Henry Schein MicroMD.