Hospitals in Phoenix in the US state of Arizona have started to cancel their contracts with electronic medical records (EMR) contractors despite being early adopters of the technology, because of previous legislation, a new report shows.

The report by HealthLeaders-InterStudy, a provider of managed care market intelligence, said that physician groups, especially smaller ones in Phoenix are increasingly removing EMR systems because of training, functionality or financial constraints.

A scarcity of doctors in Phoenix has made it difficult for medical staff to allot time for training in EMR technology, the report said.

The uptake of EMR technology in the Phoenix area and throughout Arizona is a result of a 2005 executive order that all healthcare providers should install EMR by 2010.