Interested in an Electronic Health Record (EHR) system for your community? Then it’s time to take advantage of funding opportunities in the American Reinvestment and Recovery Act.
According to Physicians Practice, of the $19.2 billion allocated for the health IT program (including subsidies to hospitals), $2 billion has been placed in a discretionary pool controlled by the Office of the National Coordinator for Health Information Technology (ONC). About $300 million of that must be spent on health-information exchanges, and another $25 million for standards development.
What it is: An EHR is an electronic record of patient health information. This record includes patient demographics, progress notes, problems, medications, vital signs, past medical history, immunizations, laboratory data and radiology reports. An EHR system automates and streamlines the clinician’s workflow while also generating a complete record of a clinical patient encounter and supporting other care-related activities.
What you get: Under the health IT provisions of the American Recovery and Reinvestment Act, a physician’s office or hospital won’t get anything if they simply purchase an EHR system; they have to show it is being used in meaningful way. Keep in mind there are of up-front costs.. However, starting in 2011, Medicare or Medicaid will reimburse part of the cost if they can demonstrate meaningful use.
Why it’s important: According to Physicians Practice, non-hospital-based physicians who participate in Medicare or receive 30 percent or more of their business from Medicaid (20 percent for pediatricians) are eligible to receive subsidies. The maximum amounts range from Medicare payments of $44,000 to nearly $64,000 from Medicaid over a five-year period. You can apply for just one of these programs. Physicians practicing in underserved areas receive a little extra benefit, as they’re eligible for an extra 10 percent from Medicare.
But keep in mind that reimbursement declines the longer you wait. Under Medicare provisions, for example, an applicant in 2011 or 2012 stands to be reimbursed $18,000 that year. Payouts slowly decline each year until 2016, when no payout will be made to physicians applying then.
Use it or lose it: Physicians Practice reports that those who aren’t using qualified EHRs meaningfully by 2015 will lose 1 percent of their Medicare reimbursement; in 2016, they will forfeit 2 percent, and in 2017 and each year after, 3 percent. If less than 75 percent of physicians have met the EHR requirements by 2018, the Secretary of Health and Human Services (HHS) is empowered to cut Medicare payments to the stragglers by up to 5 percent.
What to look for: What constitutes a “qualifying” EHR has yet to be defined by the HHS Secretary, but observers believe certification by the Certification Commission on Health Information Technology (CCHIT) may be required because of the short timeline and other factors. Dr. Mark Leavitt, chairman of CCHIT, noted in a recent webinar that a 2008-09 certification would most likely be necessary to qualify.
In short, shop carefully and take advantage of the $19.2 billion in stimulus earmarked for health information technology.
If you have questions regarding stimulus funding, contact the Knight Center of Digital Excellence at info@knightcenter.org.
