Economic Stimulus

On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009. There is $2.1 billion that will be available to the Secretary of Health and Human Services for distribution through the Office of the National Coordinator for Health IT (ONCHIT). These funds will be spent on projects related to standards evaluation and development, infrastructure for health information exchange (HIE), grants to states for the purpose of furthering EHR adoption, and the establishment of Regional Health IT Resource Centers.

The portion of the Act that defines funding for health information technology is referred to as HITECH (Health Information Technology for Economic and Clinical Health). This is providing us with a $17.2 billion opportunity to promote EHR adoption. Nationwide adoption of EHRs improves quality of care, patient safety, and cost efficiency, therefore the US Federal government is providing these financial incentives to drive providers toward adoption. Eligible professionals, acute care hospitals and critical access hospitals participating in Medicare or Medicaid may be able to receive funds for the “meaningful use of a certified EHR”. Grants and Loans will be available January 1, 2010. Eligible hospitals may receive incentives starting in fiscal year 2011 (October 2010). Eligible professionals may receive incentives starting in calendar year 2011 (January 2011). Incentive payment schedules decline over time (2011-2015). After 2015, reductions in Medicare reimbursement will begin.

Meaningful use focuses on the exchange and use of health information to improve quality of care, patient safety, and cost efficiency.

To achieve meaningful use and qualify for incentive payments, healthcare providers will need to use a certified EHR, use a certified product complete with e-prescribing capability, participate in electronic exchange of health information to improve the quality of healthcare, demonstrate interoperability of systems, and comply with the submission of reports on clinical quality measures.

Providers and office-based physicians are eligible to receive healthcare IT incentives to purchase and implement a certified EHR to improve the quality of care, increase patient safety, and improve physician and provider efficiency. Providers and physicians may be eligible to receive these incentives starting in 2011, whether they currently maintain an EHR or implement one for the first time. Providers and office-based physicians, who do not demonstrate meaningful use of an EHR by 2015, will have their Medicare fee schedule reduced by 1% per year and up to 3% by 2017.

Office-based physicians, will receive between $44K and $60K, dispersed in five payments, if they demonstrate meaningful use by January 1, 2010. Providers will receive between $5-10M, dispersed in four payments, if they demonstrate meaningful use by October 1, 2010. Providers can lose $4.7 million or more in incentive funds if there is a delay in achieving meaningful use. Rural healthcare providers will receive an additional 10% in incentive funds if they demonstrate meaningful use of an EHR.

Meaningful Use Incentives 556 Pages
Meaningful Use Certification

In a proposal rule released last week, CMS took the first step toward integrating quality measures under the Physician Quality Reporting Initiative and the “meaningful use” incentive program, Health Data Management reports. The new health reform law requires CMS to develop a plan for integrating the two programs by Jan. 1, 2012. Learn More >>>

The College of Healthcare Information Management Executives recently released its analysis of the Office of the National Coordinator for Health IT’s final rule on a temporary program to help ONC approve organizations to test and certify electronic health records, Healthcare IT News reports. The final rule on the temporary certification program appeared in the Federal Register on June 24. According to CHIME’s analysis, the EHR certification standards are likely to change and evolve over time. Therefore, CHIME concluded, the final rule would create a need for EHRs to undergo the certification process on an ongoing basis.Learn More >>>

On Friday, the Obama administration announced $795 million in grants and loans for 66 new broadband projects across the country. The funding is part of the $7.2 billion included in the 2009 federal economic stimulus package to expand broadband access nationwide. Friday’s announcement brings the total broadband funds distributed thus far to $2.7 billion. Learn More >>>

The Office of the National Coordinator for Health IT has started accepting applications from organizations seeking to be named as testing and certification bodies for electronic health record systems. ONC issued the final rule on the temporary testing and certification program on June 18, and the rule appeared in the Federal Register on June 24. The final rules on the permanent authorization program have not yet been released, although a proposed rule was issued in March. Learn More >>>

CDC has awarded a $2 million, two-year grant to the Association of Public Health Laboratories to provide technical assistance to expand the electronic exchange of laboratory data. The grant will support technical aid to state health departments, public health laboratories and hospitals to help them link disparate laboratory reporting systems. Learn More >>>

• HHS has submitted its final “meaningful use” rule and electronic health record certification criteria to the Office of Management and Budget for review and approval. On Monday, CMS sent OMB a copy of the final rule that defines how health care providers can demonstrate meaningful use of EHRs to qualify for federal incentive payments. Learn More >>>

Archived Stories

HHS Office of Recovery Act Coordination

ARRA Legislation Text: American Recovery and Reinvestment Act of 2009

Grant Associated with ARRA

Agency for Healthcare Research and Quality (AHRQ)

Centers for Medicare & Medicaid Services (CMS)

Federal Health IT Programs of Health and Human Services

HHS Health Information Technology

Office of the National Coordinator for Health Information Technology (ONC)

Understanding the ARRA Bill

John Halamka: Life as a Healthcare CIO

Neil Versel’s Healthcare IT Blog

Wes Rishel – Gartner

Dr. Lyle Berkowitz: Change Doctor

EMR and HIPPA