The biggest public health system in New York is spending big money on an electronic health records system to save more money annually and improve administrative efficiencies.

NYC Health + Hospitals, which is made up of 11 hospitals and sees more than 1 million patients annually, is spending $289 million over the next five years to install a new systemwide electronic health records system from Epic Systems Corp.

The city has allocated $150 million for the project and NYC Health + Hospitals will put up the remaining funds of $139 million, says interim system CEO Stan Brezenoff. “This information technology system is an essential investment that will pay for itself in a couple of years and provide the information technology foundation for more advanced population health efforts,” Brezenoff says. “In addition to its impact on our revenue, it’s also a fundamental component of our health system’s transformation to more streamlined and efficient operations. The result will be a greatly improved user and patient experience.”

The new Epic system is expected to go live sometime in the fourth quarter of 2020 with integration work scheduled to begin in the fourth quarter of 2018, the system says. When fully operational, better electronic records technology will help NYC Health + Hospitals become more efficient by reducing claims denials, submitting claims documentation quicker and accelerating reimbursements. Eventually the Epic system will help NYC Health + Hospitals generate additional revenue of an estimated $142 million annually, Brezenoff says.

In 2016 NYC Health + Hospitals grew revenue 3.5% to $9.08 billion from $8.77 billion. The system posted net income of $290.2 million in 2015 but a projected loss of $554.9 million in 2016. With better electronic health records technology patients will more easily be able to see and understand the costs of their care and to pay bills online, says NYC Health + Hospitals. For providers, better electronic medical records  will  make it easier and quicker to admit patients by entering specific care criteria such as if a patient requires a ventilator, the system says.

“The integration with electronic medical records allows for simplified billing, since items are recognized as billable at the same time they are ordered and it paves the way for population health goals through more refined data on clinical groupings of patients,” Brezenoff says.

NYC Health + Hospitals collects 72% of its patient-care revenue from Medicaid, 15% from Medicare, and 13% from commercial insurance, grants and other related aid. The system serves 425,000 patients without insurance annually.

NYC Health + Hospitals include Bellevue, Coney Island, Elmhurst, Harlem, Jacobi, Kings County, Lincoln, Metropolitan, North Central Bronx, Queens and Woodhull.