Finance

Question

Assume that the costs associated with the purchase of EHR software are as follows:

  • Purchase price: $25,000 per provider
  • One time implementation fee: $10,000 per provider
  • Annual maintenance fee: 18% of the purchase price applied after the first year

Estimate the ROI (%) at the end of five years for a group of 15 providers. Assume that the only monetary benefit considered is that each physician will earn $44,000 as incentive (one time only).

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