Six Questions to Consider When Choosing a New EHR Vendor

Selecting a new EHR (Electronic Health Record) is a major decision that can influence every part of your healthcare organization, from workflows and clinical efficiency to long‑term growth. EHRs are essential for all aspects of healthcare: patient data, documentation, and daily operations. Choosing the right vendor requires careful consideration of costs, features, usability, and more.

Before signing a contract with a new EHR vendor, consider the immediate and future implications for your healthcare organization, end users, workflow, business operations, and the patient community. The six questions below will help you evaluate EHR vendors more effectively to negotiate an agreement that truly supports the needs of your healthcare organization, your staff, and your patient community.

1. What are we ultimately trying to achieve? Before evaluating software features or pricing models, it is important to clearly define what your organization hopes to accomplish with a new EHR. Whether your priority is improving clinician efficiency, reducing administrative burden, enhancing patient engagement, strengthening interoperability, or preparing for future growth, those goals should drive every aspect of the selection process.Many healthcare organizations make the mistake of purchasing functionality they may never use. Additional functionality and available modules can always be negotiated on a pricing basis (which you should be able to lock in for at least two years) as an option exercised later if the scope of the organization changes, and there is a need for the additional product.Another thing to remember is that just like cars and furniture, software is always on sale. The level of discount you can achieve will depend on several factors, including the success of the vendor, timing in the quarter or fiscal year, and the length of agreement you are willing to enter. Keeping your healthcare organization’s priorities at the center of every discussion helps prevent unnecessary spending.
2. Who is coordinating the evaluation and vendor communication process? Healthcare organizations should designate a single individual or resource to coordinate all vendor interactions throughout the RFP and/or evaluation process. This person should manage vendor communications, oversee timelines, schedule demonstrations and site visits, facilitate reference checks, and maintain documentation throughout negotiations. Centralizing communication helps ensure that all stakeholders receive the same information and that commitments made during discussions are formally documented. It also reduces the risk of vendors creating separate conversations with individual leaders that may not align with the organization’s broader objectives.
3. Do we have the right stakeholders involved in the decision? EHR selection is often viewed as an IT initiative, but the reality is that it affects virtually every department across a healthcare organization. To eliminate process silos and cohesively represent the organization, involve stakeholders from across the enterprise, including clinical, operational and financial areas for both system selection and contract negotiation. This cross-disciplinary group can also cross-check the list of applications currently used by the organization and details about their workflow issues, so accurate information is conveyed to bidding vendors. Include legal and third-party strategic advisory consultant support to strategically maneuver contract language and negotiation tactics. Make sure these external resources hold direct experience negotiating similar projects on behalf of comparable healthcare organizations.
4. How can we create a true win-win partnership with the vendor? The best-executed software agreement is one that both the customer and the vendor feel good about. While every organization wants favorable pricing and contract terms, the ultimate goal should be a win-win agreement that both parties can confidently support throughout the life of the partnership.Open and honest communication is essential throughout the negotiation process. Both the healthcare organization and the vendor will have requirements they cannot compromise on, and discussing these early can prevent misunderstandings later. A well-structured agreement should clearly define implementation responsibilities, support expectations, training commitments, service levels, and future pricing protections. Organizations that engage a partner offering EHR implementation services can use that expertise to validate vendor commitments and ensure implementation responsibilities are realistically scoped before the contract is signed. When both sides feel the agreement is fair and achievable, vendors are often more invested in helping their clients succeed. This collaborative relationship can prove invaluable when unexpected challenges arise during implementation or ongoing operations.
5. Have we considered the entire system lifecycle, not just implementation? While implementation often receives the most attention during the evaluation process, healthcare leaders must also consider the ongoing costs and requirements associated with maintaining and optimizing the EHR system over time.Healthcare leaders should carefully evaluate all components of ownership, including licensing, hosting, data storage, interfaces, data migration, training, support, optimization services, and future upgrades. Taking a current-state versus future-state approach can help identify gaps between existing capabilities and the organization’s long-term goals. By documenting requirements, deliverables, and timelines upfront, healthcare organizations can avoid unexpected costs and ensure both parties share a clear understanding of expectations throughout the partnership agreement.
6. What are current customers really saying about the vendor? Few evaluation activities provide more value than speaking directly with organizations that have already implemented the system. Vendor demonstrations can showcase capabilities, but reference checks provide insight into real-world performance. Request references from healthcare organizations that are similar in size, specialty, and complexity to your own. During these conversations, seek to understand not only what went well but also what challenges were encountered. Ask about implementation timelines, budget performance, staffing requirements, vendor responsiveness, training effectiveness, and post-go-live support.The most valuable lessons often come from understanding what customers would do differently if they were starting the process again. These conversations can reveal strengths and weaknesses that may not be evident during formal presentations and help validate whether a vendor is truly the right fit for your organization.

 

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By asking these six questions throughout the vendor selection process, healthcare leaders can establish a more structured evaluation framework and negotiate stronger agreements for a successful long-term partnership.

Whether you’re evaluating vendors, developing an RFP, negotiating contracts, or planning an EHR transition, working with experienced healthcare IT advisors can help reduce risk and strengthen project outcomes. Learn how MTS’ EHR selection and advisory services can help your organization identify the right technology partner and negotiate a contract that delivers value long after go-live.