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Cost of Downtime Calculator

This calculator provides a medical practice a starting point to understanding the economic impact of downtime to its operations.

 The first section calculates the direct cost for those that would be impacted by the outage based on salary and wages. As a reference, suggested average costs are listed as an hourly rate, based on US Department of Labor statistics.

 The “Recovery Cost” section calculates the potential cost to recover the equipment or data. This may include service provider cost, hardware and cost to. The “Intangible and Potential Damages” section may not be as easily calculated but should not be ignored. Depending on the impact, there may be other significant costs including penalties, litigation and lost customers.

 Input your information based on the number of employees (number of units) and the cost for each as well as the other fields based on your practice. If you have questions on “your number”, please contact a Healthcare Technology Consultant here.

Input Hours of Downtime
 
Calculation of impact   Number of Units   Your Cost   *Average Cost   Sub-Total
Total Lost Productivity per Hour
Physician average $90
Physician Assistant or Nurse Practitioner $45
RN $32
Business Manager $43
Administrative staff $16
Other staff $22
Sub-Total
 
Recovery Cost
Cost to recover equipment and data (remedial) $15,000
Cost to input data (overtime or temporary staff)
Sub-Total
 
Intangible and Other Potential Damages
Potential cost of compliance (HIPAA, PCI, SOX) penalties $100-$50,000
Potential Litigation
Reputation management (PR/Marketing)
Loss of Patient and Goodwill
Lost Revenue
Sub-Total
Total
*Labor based on US Labor Department. Includes benefits at 30% of salary/wages

Next Step: Health IT Risk Assessment
Determine how likely you are to lose this money!