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EMR vs. EHR explained: Differences, benefits, and how to choose the right system

The price tag alone should not be the determining factor in whether an EMR vs. EHR is the right choice for your practice.

Last updated on 04/9/2025
  • Current Version – Mar 13, 2025
    Written by: Andrea Curry
    Changes: This article was updated to reflect the latest information.
physician using EHR or EMR

Key Takeaways

  • Electronic Health Records (EHRs) provide comprehensive, interoperable patient data, enabling seamless sharing across multiple healthcare providers and facilities
  • Electronic Medical Records (EMRs) are digital versions of paper charts, designed for use within a single practice and do not easily transfer between providers
  • Choosing the right system depends on practice size, specialty, interoperability needs, and regulatory compliance

Electronic records have transformed modern healthcare, but Electronic Health Records (EHRs) and Electronic Medical Records (EMRs) are not interchangeable. In this article, we will break down:

  • Key differences of EHR vs. EMR systems
  • How each system evolved and its impact on healthcare
  • Regulatory and compliance considerations
  • Which types of medical practices benefit most from EHRs vs. EMRs
  • Top certified EHR and EMR systems on the market

Understanding these differences will help healthcare providers, administrators, and IT decision-makers choose the right system for their medical practice.

Choosing the right EHR is critical. This free guide walks you through what to look for and how to make the smartest choice.

What is the difference between an EMR and an EHR?

EMR systems overview

EMRs are digital patient records used within a single healthcare practice, replacing paper charts for efficient documentation and clinical workflows.

  • Designed for internal use only, with no seamless data exchange between providers.
  • Store patient histories, diagnoses, medications, and treatment plans within one practice.
  • May include patient portals, e-prescribing, and scheduling, but functionality is practice-specific.
  • Primarily used by private practices and small clinics that do not require interoperability.

EHR systems overview

EHRs expand beyond EMRs by enabling real-time data exchange across multiple providers, improving care coordination and public health tracking.

  • Interoperable and shareable, EHRs connect hospitals, specialists, urgent care centers, and pharmacies for seamless patient management.
  • Support clinical decision-making, telehealth, and predictive analytics, reducing medical errors and redundant testing.
  • Facilitate public health monitoring, including disease trends, and chronic conditions (e.g., COVID-19 trends).
  • Include advanced patient engagement tools, such as remote access, automated reminders, and secure messaging.
The main difference between EHRs and EMRs:

While EMRs are limited to single-practice use, EHRs enhance interoperability, care coordination, and public health insights, leading to greater efficiency and improved patient outcomes.

Choosing between EHRs vs. EMRs

Selecting between Electronic Medical Records (EMRs) and Electronic Health Records (EHRs) requires evaluating features, costs, and long-term value.

  • EMRs are generally more affordable but offer limited capabilities since they are designed for internal use within a single practice.
  • EHRs have a higher upfront cost but provide interoperability, accessibility, and comprehensive patient management across multiple healthcare settings.

While cost is an important consideration, it should not be the sole factor in your decision.

Learn how to budget for an EHR system to maximize your investment.
 Features and benefitsEMREHR
Direct clinical results
Consolidated patient information and timelines
Reduces paper clutter and misplaced or mismanaged records
More secure than paper files
Requires less physical storage space
Option to incorporate additional medical and administrative modules beyond PHI
Can be housed on a local server 
Can be cloud-based
Greater coordinated patient care between disparate providers 
Fewer prescription errors 
Improves patient/provider communication and information sharing 
Telehealth when requested 

What you can expect from an EMR system

For healthcare practices transitioning from paper-based records, Electronic Medical Records (EMRs) offer significant advantages in efficiency, documentation, and patient management.

Key benefits of EMR systems

  • Digitize a patient’s medical record within a specific practice
  • Make informed decisions based on a patient’s medical history at that practice, including diagnoses, medications, treatment plans, immunization dates, and test results
  • Streamline some administrative tasks, including appointment scheduling, billing, and coding
  • Improve patient recall by sending reminders for upcoming appointments or preventative screenings
  • Monitor and track the practice’s performance, patient care metrics, and regulatory compliance
  • Input legible notes in real time

Limitation of EMR systems

  • Easily exchange patient data between different practices and health systems
  • Connect with health information exchanges (HIEs) or other health information networks
  • Offer advanced analytics and reporting
  • Scale as your practice grows
  • Completely eliminate eliminate administrative tasks

What you can expect from an EHR system

Unlike EMRs, which are limited to a single practice, Electronic Health Records (EHRs) take a holistic approach to patient care by enabling seamless data exchange across healthcare providers. The key advantage of an EHR is that it provides real-time, comprehensive access to a patient’s medical history and chart, improving both care coordination and patient engagement.

Key benefits of EHR systems:

EHRs allow practitioners to do everything they can do with EMRs, plus:

  • Store a complete patient record in one place, including:
    • Personal identifying information
    • Traditional chart notes
    • Lab orders and results
    • Prescription history and refill activity
    • Insurance details
    • Emergency care and hospital records
  • Coordinate care across multiple specialties, ensuring continuity and reducing redundant tests.
  • Offer patient portals where individuals can securely access visit notes, lab results, and electronic prescription requests.
  • Provide advanced data analytics and reporting, making it easier to meet government reporting requirements.
  • Support legal and regulatory compliance by automating documentation and audit trails.

Why EHRs outperform paper records

According to the Office of the National Coordinator for Health Information Technology (ONC) guide to EHR privacy and security, “All types of EHRs outperform paper medical records when it comes to providing better access to and use of electronic personal health information (ePHI).”

For healthcare providers still relying on outdated systems or manual processes, EHRs improve efficiency, reduce errors, and enhance patient care.

A note about EHR interoperability 

Despite ongoing efforts to improve data sharing across healthcare platforms, EHR interoperability is not yet universal. Many systems still face compatibility challenges, limiting seamless patient record exchange between providers.

One of the most significant initiatives addressing this challenge is the development of Fast Healthcare Interoperability Resources (FHIR) by Health Level Seven International (HL7).

FHIR helps standardize healthcare data exchange, allowing patients to maintain a single, comprehensive health record across multiple providers. This includes medications, allergies, diagnoses, and treatment history, improving care coordination.

In 2020, the Centers for Medicare and Medicaid Services (CMS) reinforced interoperability through its Interoperability and Patient Access Final Rule, derived from the 21st Century Cures Act.

This standard is now widely used in mobile health apps, cloud services, EHR data sharing, and healthcare communications.

The 4 key goals of EHR interoperability include:

  • Enhancing provider interactions with applications like e-prescribing.
  • Standardizing messaging protocols for seamless communication.
  • Facilitating health information exchange, such as lab results and progress notes.
  • Integrating consumer devices, such as tablets, with healthcare systems.

Are there different compliance standards for EMRs compared to EHRs?

Both Electronic Medical Records (EMRs) and Electronic Health Records (EHRs) must adhere to the same compliance standards for managing, storing, and sharing electronic Protected Health Information (ePHI). The method of deployment — whether an EMR is hosted on a private server or an EHR is cloud-based — does not change regulatory obligations.

Ultimately, the responsibility for compliance falls on the healthcare provider, requiring measures such as stress-testing servers, conducting security audits, and maintaining regular vendor meetings for updates.

Secured vs. unsecured PHI
SecuredUnsecured
Data is end-to-end encryptedData is encrypted (not end-to-end encrypted)
Encryption key is stored securelyEncryption key is unintentionally accessible to unauthorized parties
Digital PHI is destroyed according to best practicesDigital PHI is deleted from the front end only
Physical storage means (e.g., hard drives, laptops, tablets, film, paper files) are protected from physical and digital unauthorized accessPhysical storage means are not physically and digitally secured
Physical storage means are destroyed according to best practicesPhysical storage means are not destroyed according to best practices
Result: greater chance that only authorized parties may access PHIResult: greater chance that unauthorized parties may access PHI

Do hospitals use EHRs or EMRs?

Hospitals rely on digital health record systems to manage patient care, but not all hospitals use the same type of system. The choice between an Electronic Medical Record (EMR) and an Electronic Health Record (EHR) depends on hospital size, structure, and the need for data sharing.

Since Medicaid and Medicare incentives play a significant role in hospital budgeting, most hospitals opt for certified systems that meet regulatory requirements.

Which medical practices should use an EMR?

If your practice is specialized and doesn’t need to share patient medical information with external healthcare providers, an EMR may be in your best interest. 

An EMR is not only likely to be less expensive to implement, but also easier to manage due to its limited scope.

Examples of organizations that may want to consider an EMR over an EHR include:

  • Facilities that do not plan to take advantage of Medicaid and Medicare incentive benefits as those are only afforded to CEHRT systems
  • Clinics with their own in-house specialists
  • Clinics in rural areas without reasonable access to specialists or hospital systems
  • Physical and occupational therapist offices
  • Independent psychological and psychiatric offices
  • Chiropractic specialists
  • Dental professionals
  • Stand-alone eye care clinics
  • Small clinics that plan to upgrade to EHR as they grow and budget allows
  • Research facilities

Examples of organizations that may want to consider an EHR over an EMR include:

  • Facilities that want to have a comprehensive view of their patients’ healthcare
  • Comprehensive healthcare systems
  • Hospital systems
  • Pharmacies with multiple locations

Which medical practices should use an EHR?

An Electronic Medical Record (EMR) is best suited for specialized practices that do not need to share patient information with external healthcare providers.

EMRs are often more affordable and easier to manage due to their limited scope. They are ideal for:

  • Facilities that do not plan to participate in Medicaid and Medicare incentive programs, which require Certified EHR Technology (CEHRT).
  • Clinics with in-house specialists that manage all patient care internally.
  • Rural clinics that lack nearby hospitals or specialists for referrals.
  • Independent specialty practices, such as:
    • Physical and occupational therapy offices
    • Independent psychological and psychiatric offices
    • Chiropractic clinics
    • Dental professionals
    • Stand-alone eye care clinics
  • Small clinics that plan to transition to an EHR as they grow.
  • Research facilities that primarily document patient interactions for studies rather than long-term care coordination.

If a practice primarily operates within its own system and does not require external data sharing, an EMR may be the right choice.

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Which practices should use an EHR?

An Electronic Health Record (EHR) is better suited for practices that need seamless data exchange, real-time test results, and interoperability with external healthcare providers.

EHRs provide broader functionality and access to shared medical histories, making them ideal for:

  • Hospitals and healthcare systems that require real-time, multi-location record sharing.
  • General practitioners
  • Internists
  • Specialists requiring external test results and shared patient records, including:
    • Cardiologists
    • Neurologists
    • OB/GYNs
    • Allergists
    • Radiologists
    • Ophthalmologists and optometrists
    • Psychiatrists and psychologists
    • Physical and occupational therapists
    • Dermatologists
  • Pharmacies with multiple locations that need prescription tracking and patient record access.
  • Hospitals and healthcare systems that require real-time, multi-location record sharing.

Choosing the best certified EMR or EHR for your medical practice

Selecting the right EMR or EHR software is essential for ensuring compliance with Medicare and Medicaid requirements while improving clinical workflows and patient care. The right system depends on your practice’s size, specialty, and interoperability needs.

If your practice requires internal record management without external data-sharing, an EMR may be the best fit. Top EMR options include Tebra, RXNT, and WebPT, each offering unique features such as clinical documentation, telehealth, and billing integration.

For practices that need real-time data exchange across multiple providers, an EHR offers greater flexibility and scalability. Tebra, Athenahealth, eClinicalWorks, and AdvancedMD lead the market, providing comprehensive patient record management, interoperability, and regulatory compliance tools.

Final thoughts: Choosing the right system for your practice

The decision between EMRs and EHRs ultimately depends on your practice's size, specialty, and need for interoperability.

  • If your practice operates independently and does not require external data sharing, an EMR may be the right choice.
  • If your practice needs real-time data exchange, advanced reporting, and regulatory compliance, an EHR is the better long-term investment.

Choosing the right system can improve workflow efficiency, patient care, and financial performance.

Planning for a new EHR? These resources can help you make a confident decision:

Our experts continuously monitor the healthcare and medical billing space to keep our content accurate and up to date. We update articles whenever new information becomes available.
  • Current Version – Mar 13, 2025
    Written by: Andrea Curry
    Changes: This article was updated to reflect the latest information.
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Karmin Gentili

Karmin Gentili has been a freelance writer and editor since 2016. She has over 25 years of experience in corporate HR and compliance consulting. She has worked to further elevate her skills by pursuing and receiving multiple certifications, including copywriting, video scriptwriting, effective content positioning, case study writing, and SEO. Her love of writing motivates her to use those skills to develop content for the medical field that ensures others can work toward achieving their goals.

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