Wal-Mart to roll out e-health records.(HEALTH RECORDS)

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Wal-Mart stores plan to jump into the electronic health record market by bringing the technology to physicians in small practices.

According to a New York Times report, Wal-Mart will offer a package--hardware, software, installation, maintenance, and training--that it says will make the technology more accessible and affordable. It plans to team its Sam's Club division with Dell for computers and eClinicalWorks for software.

The Sam's Club offering, which will become available soon, will cost under $25,000 for the first physician in a practice, and about $10,000 for each additional doctor, according to the Times. After installation and training, continuing annual costs for maintenance and support will be between $4,000 and $6,500 a year, the company estimates.

Precisely because of the cost and complex technology issues involved, many small-practice doctors have shunned e-health records to date. And, only about 17% percent of U.S. physicians are currently using computerized patient records, according to a 2008 government-sponsored survey published in The New England Journal of Medicine. The use of e-health records is widespread in large physician groups, but three-fourths of the nation's doctors work in small practices with 10 physicians or fewer.

However, Wal-Mart's offering, along with the Obama administration's economic stimulus incentives, has the potential to change that. Over the next few years, Obama's stimulus plan provides $19 billion in incentives--more than $40,000 per physician--to install and use e-health records. Wal-Mart's offer of lower costs and an efficient distribution channel may interest small physician groups at last.

"If Wal-Mart is successful, this could be a game-changer," David J. Brailer, former national coordinator for health IT in the Bush administration, told the Times.

As part of the package, Dell will offer either a desktop or tablet personal computer and installation. EClinicalWorks, which is used by 25,000 physicians, mostly in small practices, will provide the e-record and practice management software for billing and patient registration as a service over the Internet. The Times said this "software-as-a-service" model can trim costs considerably and make technical support and maintenance less complicated because less software resides on the personal computer in a doctor's office. EClinicalWorks will also handle its software installation, training, and maintenance.

Wal-Mart's role, according to Marcus Osborne, Wal-Mart senior director for healthcare business development, is to put the bundle of technology into an affordable, accessible offering. He told the Times Wal-Mart will use its buying power for hardware and software discounts.

According to the Times, Wal-Mart is testing the technology in its own in-store healthcare clinics, staffed by third-party physicians and nurses. Started in September 2006, 30 such clinics now operate in stores in eight states. The clinics are using the technology Wal-Mart will offer to small physician groups.

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