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The Application Service Provider delivery model has become increasingly popular as a tool to provide clinical and administrative applications in medical offices without the costs or complexities associated with traditional client/server applications.
The ASP model functions by allowing the physician’s office to access software over the Internet, rather than installing it on a system owned and maintained by the physician. The information is stored and maintained in a centralized and secure database. The physician’s office typically pays a monthly fee or percentage of billings for the service, thus outsourcing this function.
This delivery model speeds implementation, minimizes the expenses and risks, and overcomes the chronic shortage of qualified technical personnel available in-house.
The following edited information is reprinted from the ASP Industry Consortium web site (
http://www.aspindustry.org/index.cfm ).
What is an Application Service Provider?
Application Service Providers (ASPs) deliver and manage applications and computer services from remote data centers to multiple users via the Internet or a private network. Obtaining these applications from an outside supplier is a cost-effective solution to the demands of systems ownership: up-front capital expenses, implementation challenges, and a continuing need for maintenance, upgrades and customization. Commercial ASPs offer leasing arrangements to customers, whereas non-profit or government organizations may provide these services with no fee. An ASP may be a commercial entity or a not-for-profit or government organization supporting end users.
ASPs give customers a viable alternative to procuring and implementing complex systems themselves. In some cases, ASPs even provide customers with a comprehensive alternative to building and managing internal information technology operations. ASP customers also are able to control more precisely the total cost of technology ownership through scheduled payment schemes. And with data processing performed off-site by a third party, organizations can focus on their areas of core expertise.
Benefits from using an ASP include:
- speed to market: the ASP already has the equipment, applications and expertise ready to provide rapid market access
- operational freedom: by outsourcing application management, the customer can focus critical resources on their core business function
- improved performance: ASPs can apply their vast experience to implement best IT practices for superior levels of availability, security, backup, disaster recovery, and help desk
- financial flexibility: this model reduces fixed costs and lowers overall expenditures for hardware, applications and management
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