Today I came across this coverage of an announcement that GE Capital will be providing $100 million of loans to “accelerate adoption of electronic health records (EHR).” The loans from GE will carry no interest until the institutions obtaining these loans begin receiving government money, typically in 2012.
Does anyone see a problem with this?
GE Capital isn’t giving EHR loans to you because they are doing charity work. They are a business and they know that in 2012 a large number of these loans will start earning them a bunch of interest. This could easily happen because a doctor’s office was unable to implement the GE Centricity EHR software in the alloted time frame or maybe they couldn’t get GE Centricity EHR to show meaningful use (through GE Centricity’s fault or their own). Either way, GE is banking on the fact that many of these loans won’t be repaid. What better debtors could they have than high earning doctors?
Doesn’t this sound a lot like those 0% interest credit cards? The credit card companies have been making a killing getting people into debt over their head and down the road charging incredible interest rates when a large number of the people can’t repay. Seems like GE Capital is trying to do the same with this EHR financing plan. Of course, if someone does pay it off, then GE health is still making a nice chunk of money from selling an expensive EHR platform.
There are so many different EHR pricing models and financing options available. EHR selection should focus on what’s best for the office. I’ve never known EHR financing to be a problem with purchasing an EHR. There are lots of options out there.
People who choose to go with a no interest loan in the hopes that the EHR stimulus money from ARRA will repay those loans are playing with fire. No doubt some people are going to get burned.