EHR vs. EMR: Which One is Right for Your Healthcare Practice?

The majority of healthcare organizations switched to electronic recording systems long ago, improving efficiency and patient care. You’ve likely heard of Electronic Health Records (EHR) and Electronic Medical Records (EMR) — two widely used terms in digital healthcare. They are often used interchangeably, but are EHR and EMR the same thing? The answer is simple: no, they aren’t. 

While both store patient information digitally, they serve different purposes and offer distinct advantages. In this article, we will compare EHR vs. EMR, explain the main differences and benefits, and discuss their use cases to help you understand which system best fits different healthcare needs.

What is an EMR?

Let’s start by explaining what does EMR stand for in healthcare. Electronic Medical Records (EMRs) are a digital version of traditional paper health records. These records contain the medical and treatment history of patients within a practice. Overall, EMRs allow healthcare providers to: 

• Track and manage patients’ medical data;
• Monitor patients’ conditions over time;
• Quickly determine which patients need preventive screenings or checkups;
• Generate informed reports;
• Enhance the quality of medical care;
• Monitor vaccinations and other key health parameters.

There are several types of EMR systems:

• Tablet EMRs. These systems leverage tablet devices to provide healthcare professionals with easy access to patient records, facilitating more efficient and effective care delivery. 
• Cloud-based EMRs. These systems store patient information on remote servers, enabling access from various devices and locations. It also helps to reduce operational costs. Cloud-based EMRs use multiple layers of security to protect patient data, but operations can be disrupted if the cloud servers go offline.
• On-premise EMRs. Classic EMR systems store patient information on the servers of healthcare providers. They are not as cost-efficient as cloud-based, but they offer more secure and reliable storage. 
• Mobile EMRs. These systems are designed for use on mobile devices, allowing healthcare providers to access patient records on the go. Mobile EMRs are convenient and help improve the efficiency of patient care. 
• Voice recognition EMRs. These systems use voice recognition technology to convert spoken words into text, facilitating faster and more accurate data entry. While they can improve efficiency, they may require additional training for users to maximize their effectiveness.

The transition from paper records to digital format enhanced both patient care and administration efficiency. Some of the key benefits of EMR include:

• Improved patient care: EMRs provide healthcare professionals with instant access to comprehensive patient information, leading to better-informed decisions. With access to a complete patient’s medical history, providers can avoid medication errors and duplicate testing, ultimately improving patient outcomes.
• Reduce errors in patient data: EMRs allow healthcare providers to minimize errors associated with handwritten notes, ensuring that patient data is accurate, readable, and up-to-date.
• Enhanced efficiency: EMRs streamline administrative processes such as scheduling, documentation, and billing. It helps to reduce the time spent on paperwork so healthcare providers can focus on patients.
• Data analysis and reporting: EMRs enable healthcare organizations to collect and analyze data more effectively. This capability supports quality improvement initiatives, helps identify trends in patient health, and assists in research.

What is EHR in healthcare?

Electronic health record (EHR) is also a digital record system, but it includes a patient’s entire health history across multiple healthcare providers and institutions. Unlike EMRs, EHRs facilitate data sharing and interoperability, enabling different authorized healthcare providers to access and update the records. EHRs support better coordination of care, integrate with labs and pharmacies, and also have billing and insurance information.

As with EMRs, there are several types of electronic health record systems, including:

• Physician-hosted EHR. Basically, it’s a traditional model where all the data is stored on on-premise servers within the organization. It can be costly, as healthcare providers must purchase hardware and software and cover ongoing updates and maintenance.
• Remotely-hosted EHR. These systems store patient data on external servers hosted by the vendor. This way, healthcare providers don’t need to maintain the hardware and software themselves, as they can access all the information through the network connection. The EHR provider handles updates and maintenance.
• Cloud-based EHR. These systems store all the patient data in the cloud, so healthcare providers can easily access it anytime, from anywhere, as long as they have an internet connection. Cloud solutions enhance data interoperability and reduce costs. Organizations pay on a subscription basis, and third-party providers handle the updates and security. Therefore, clinics don’t need to hire IT specialists to manage the on-premise system. 

Both EHR and EMR systems have played a significant role in the digitalization of patient medical records. However, while EMR systems have limited functionality, EHR systems generally offer more benefits to healthcare organizations. Advantages of electronic health records include:

• Improved care coordination and communication: EHRs enable quick access to patient records for different authorized healthcare providers, which helps enhance communication. Doctors can securely exchange medical records through the system in real-time, coordinating patient care. This is particularly important for patients who see multiple specialists.
• Reduce medical errors: EHRs help more effectively diagnose patients and reduce medical errors, contributing to safer care. They also help to enhance patients’ safety with features such as alerts for allergies.
• Increased efficiency: EHRs streamline documentation processes, which can improve productivity and allow healthcare providers to focus more on patient care rather than administrative tasks.
• Better patient engagement: Many EHR systems include patient portals that empower patients to access their health information, schedule appointments, and communicate with their healthcare providers, promoting active participation in their own care.
• Enhanced privacy and security: EHRs improve the privacy and security of patient data through advanced encryption and access controls, ensuring that sensitive information is protected.

The key differences between EHR and EMR

As we can see, the main difference between EHR and EMR lies in their uses and scope. An EMR is used within a single healthcare facility, such as a doctor’s office or a hospital. It includes medical history, diagnoses, treatments, and prescriptions but is not designed for sharing outside the organization. This makes EMRs effective for internal record-keeping, but they can be limited when a patient needs to visit multiple providers.

On the other hand, an EHR is a comprehensive, interoperable system that allows for secure data sharing across different healthcare providers, hospitals, and specialists. That means, with EHR, you don’t need to print out your healthcare records if you want to visit another specialist. They can just check all the information they need in the system.

Here are some more differences between electronic health record vs electronic medical record:

Why choose EHRs over EMRs?

As we discussed the differences between EHR and EMR, it’s clear that EHRs offer greater flexibility, interoperability, and patient-centered care compared to EMRs, which are limited to a single provider’s system. While they both bring great benefits to healthcare organizations, helping to efficiently organize patient data and enhance treatment, hospitals and large clinics prefer EHRs over EMRs. 

EHRs are more functional and help healthcare providers to better understand patient needs and have a more detailed view of their condition. For example, if an emergency occurs, doctors can quickly access the patient’s entire medical history, including past diagnoses, medications, allergies, lab results, and previous treatments. This allows them to make faster, more informed decisions and create a treatment plan that aligns with the patient’s overall health condition.

When an EMR is the right choice for your practice

While EHRs offer healthcare organizations numerous advantages, EMRs may be the right choice in specific scenarios. It can be a good choice for:

• Small, independent organizations. If a healthcare provider operates independently and does not need extensive data sharing, an EMR may be a cost-effective solution.
• Minimal interoperability requirements. If a practice does not need to share records with other institutions, an EMR can efficiently fulfill its documentation needs.
• Budget constraints. EMRs are generally more affordable than EHRs, making them suitable for smaller practices with limited budgets.
• Simpler implementation. EMRs require less complex implementation and training compared to EHRs, making them easier to adopt for small teams.

How to develop EHR and EMR systems

The medical software development process comes with its complexities, as there are numerous technical and regulatory aspects to consider. It requires careful planning, robust security measures, and strict adherence to industry standards and regulations such as HIPAA, GDPR, and others.

You may think that EHR and EMR are the same in the development process, but there are also some differences. We’ve already covered a comprehensive guide on how to build an EHR system, so let’s now explore the key steps of the EMR development process.

Find a reliable IT provider

As we mentioned, medical software development has its challenges. Many healthcare organizations do not have an in-house team of developers, and gathering one requires resources. Aside from technical expertise, the specialists also need to have a deep understanding of healthcare regulations. That’s why it’s better to find a reliable and experienced software development vendor. Key aspects you should consider when choosing an IT service provider: 

• Proven track record of projects in healthcare technology
• Expert with regulatory compliance (HIPAA, GDPR, etc.)
• Offers support and maintenance services

Carefully review their portfolio and client testimonials, don’t rush things, and take the time to compare different vendors. A good IT provider will help you create a robust and secure EMR system that fully complies with industry regulations and standards.  

Requirements analysis and planning

Once you have your IT partner, the next phase is conducting a thorough requirements analysis. This step involves gathering input from various stakeholders, including healthcare professionals, administrative staff, and IT specialists. By understanding their needs and pain points, you can create a comprehensive plan that outlines functional and non-functional requirements.

As EMR holds sensitive patient information, you should pay close attention to medical regulations and compliance requirements. Your system must adhere to all necessary standards, such as:

• Health Insurance Portability and Accountability Act (HIPAA);
• Health Level Seven International (HL7) standards;
• International Organization for Standardization (ISO) standards;
• General Data Protection Regulation (GDPR);
• Your local and regional regulations.

Define user roles and permissions

An important step in securing the sensitive patient data within your EMR system is access control. It is also the basic requirement outlined in HIPAA. Unlike EHR, EMR is typically used by a single healthcare organization, so role-based access control is simpler. The main user roles are: 

• Doctors;
• Nurses;
• Receptionists;
• Administrators.

Define the level of access within these roles and apply necessary limitations to ensure the security of patient data.

Select core features

Choosing the right core features is vital for the effectiveness of your EMR system. Essential functionalities often include patient registration, appointment scheduling, clinical documentation, and reporting. Prioritize features based on user feedback and industry standards to ensure the system meets current and future needs.

Create UI/UX design

Create a user-friendly design so healthcare professionals can easily navigate and use the system. Collect feedback from end users to gain a better understanding of their preferences and workflow. This will help to make an intuitive and engaging design. 

Development 

When all the preparations are complete, and an outline for the work is ready, the development team can begin coding. At this stage, they may also choose to build an MVP to release the EMR system faster and enhance it later based on user feedback. The development process focuses on core features, while QA engineers thoroughly test each one to ensure everything works correctly.

QA testing

Once the development phase is complete, it’s time to put the ready EMR system through rigorous testing. This step is crucial in ensuring the reliability, security, and functionality of the system before it’s deployed in a live healthcare setting.

Deployment and support

Implement the EMR system in phases, providing staff training and technical support. Regular updates and maintenance are essential to keep the system secure and efficient.

Approximate cost of developing an EHR or EMR System

“How much does developing an EMR or EHR system cost?” is a universal question with an equally universal answer: “It depends.” Like any software development project, it requires considerable resources, and the total cost always depends on several factors, such as:

• System complexity and features. Creating an MVP with basic functionality costs less than developing an advanced system with various functions and integrations.
• Development team location. The rates are different across various regions, so it can significantly impact the overall cost of development. For example, hiring developers in North America can cost more than in other regions like Eastern Europe. 
• Deployment methods. Choosing between on-premise, cloud, or hybrid solutions affects both initial and ongoing costs. For instance, cloud-based solutions have lower upfront costs and require subscription-based pricing. On the other hand, on-premise systems involve higher initial costs for hardware, infrastructure, and IT staff.
• Customization. If you don’t want to opt for an off-the-shelf solution, get ready to spend extra time and money on custom development. However, as a result, you will have a system fully tailored to your needs and requirements.
• Regulatory compliance. Ensuring compliance with HIPAA, GDPR, HITECH, and other healthcare standards also requires resources. You need to have robust security measures in place; either way, you risk getting penalties for non-compliance.
• Further support and maintenance. Nothing ends with the launch and implementation of your system, as you need to ensure it works correctly as long as you use it. Staff training, software licensing, bug fixes, updates, and security patches are all ongoing expenses that you need to take into account as well. 

Considering all these factors, the approximate cost of developing an EHR or EMR system can range from $50,000 for a simple solution with basic functionality to $2,000,000 for a large enterprise system. Therefore, carefully evaluate your needs, requirements, and budget before looking for a healthcare IT services provider.

You can also use our calculator to estimate the EHR or EMR development cost yourself.

Calculate the cost of your custom EHR or EMR system in 2025

To sum it up

Choosing between EHR vs. EMR can seem a bit complicated, especially if you don’t see their differences. While both are digital versions of a patient’s medical history that allow healthcare providers to make more informed decisions, EHR provides a deeper view of a patient’s overall health condition. It not only helps doctors to decide on a better treatment plan but also enhances collaboration between healthcare providers. With advancements in telemedicine and other technologies, EHR systems will only become more robust in the near future. However, the development and implementation of an EHR system can be quite costly. EMR systems, on the other hand, remain a great solution for small or specialized clinics that do not require frequent data sharing between providers. 

If you have not yet decided what solution is best suited for your organization, you can always rely on an expert healthcare IT services provider such as SoftTeco. With more than 17 years of experience in the healthcare industry, we provide comprehensive consultation and software development services to help you make a shift toward digitalization and efficiency.