How We Tried (and Failed) to Eliminate Transcription

Did you know MD-IT’s original business plan from ten years ago sought to eliminate transcription and replace it with technology?  We found out it wasn’t such a great idea.  That is why we are such vocal proponents today of dictation and transcription as part of the future of electronic medical records.

MD-IT started in 2000 as a software company selling front-end speech recognition combined with basic EMR functionality.  Here’s an excerpt from an early business plan:

With MedSpeak VRE, healthcare providers create the documentation of their patient encounters using speech recognition, a tool similar to the dictation processes that physicians are currently using. MedSpeak automatically creates a detailed electronic record in a relational database.

Sounds like an EMR, doesn’t it? At least we knew enough back then to use speech recognition:

Frequently, EMRs use drop-down menus and pick lists to collect and code the data. This approach is time-consuming and too restrictive for physicians, and as a result has not been widely accepted.

And in 2001, here’s what our crystal ball predicted for the future:

According to Gartner Group analysts, “continuous speech recognition will result in a 60 percent to 80 percent reduction in transcription staffing by 2004”. By 2005, “the preferred method of physicians and nurses for entering text data will be speech recognition”.

We sure missed the mark on that one!  What we found in our early business model is that front-end speech recognition is a useful tool for about 10-20% of providers, especially among those who are motivated to cut costs. The vast majority of physicians, 80% or more, prefer dictation and transcription.  It’s efficient.  It’s accurate.  It’s convenient.

And so in 2004, we changed our business model.  Instead of being a technology company trying to displace transcription, we became a transcription company that uses technology to enhance physician dictation. 

If you can’t beat ‘em, join ‘em!

Related posts:

1.    Welcome to the new MD-IT.com
2.    Eliminating Transcription Can Hurt Bottom Line