Financial analysis essential in VR purchase decision

Thinking about adopting voice recognition (VR)? Building a financial model that includes all of the costs associated with acquiring the technology can help your purchasing decision, according to a recent presentation by Dr. Jonathan Berlin of Northwestern University in Evanston, IL.

"There are intrinsic limitations to any financial model, and financial models are dependent on many assumptions," Berlin said at last month's annual meeting of the Canadian Association of Radiologists (CAR) in Montreal. "However, for a project such as voice recognition, most assumptions can be reasonably estimated by appropriate due diligence prior to adopting [the technology]."

Berlin presented information on the model he constructed for his department to use in selecting a VR system. He discussed the parameters that should be included in any financial model, as well as estimated with as much accuracy as possible. These parameters include:

  • Purchase and implementation prices of the VR system
  • Cost of maintaining the VR system
  • Percentage of radiologists using self-editing with the system
  • Percentage of radiologists using transcription editing
  • Percentage of radiologist nonusers
  • Price of residual transcription

He noted that it's difficult to put a specific number into the model that represents the effect of VR system adoption on productivity, because this varies from person to person and from department to department.

"It's controversial, but on the whole, I believe it probably does slow radiologists down on a case-by-case basis," Berlin said. "But, in spite of that, radiologists' case load goes up every year."

Other nonfinancial parameters surrounding VR technology should also be taken into account in the decision to purchase a VR system, including the learning curve for becoming familiar with the system and the increased error rate in reports. On the other hand, there are many positive aspects to voice recognition, such as faster report turnaround times and the fact that a radiologist can sign off on each case as soon as he or she dictates it.

Berlin is currently writing a manuscript about his financial model, and he lectures frequently across North America about the financial and nonfinancial pros and cons of VR technology.

"Just keep in mind that with voice recognition, overall, you save money. That's pretty nondebatable," he said. "The question is, are you taking into account all of the changes that will take place -- for example, who will be doing the work that the transcriptionists have been doing up until now?"

By Rosemary Frei
AuntMinnie.com contributing writer
May 13, 2009

Related Reading

Radiologists underestimate overlooked SR report errors, January 23, 2009

Speech recognition vendors tackle dialect challenges, December 17, 2008

SR technology is no panacea for reporting work habit change, December 15, 2008

ED report turnaround times drop with speech recognition, November 19, 2008

Speech recognition shrinks report turnaround time, May 29, 2008

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