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What HITECH Incentives Mean for Your Practice

By Ronald McLaughlin
Sep 18, 2009
It's all under the section known as HITECH (Health Information Technology for Economic and Clinical Health).

These incentives, available to those already using EHR/EMR as well as those who adopt EHR/EMR, can make a significant financial impact on provider practices.

EHR/EMR adoption will also help avoid reimbursement reductions that will occur for those who do not adopt.

Note: The proposed standards, specifications, and requirements have not been defined by the Secretary of Health and Human Services (HHS). The Secretary of HHS will issue an initial set of standards, implementation specifications, and certification requirements by December 31, 2009.

In order for physicians to be eligible to receive HITECH incentives, they must be able to:

- Demonstrate "meaningful use" of certified EHR/EMR technology including e-prescribing.

- Demonstrate the certified EHR/EMR is able to provide electronic exchange of health information to improve quality and promote care coordination.

- Report on clinical quality measures as specified by the Secretary of HHS. The Secretary of HHS will identify a standards harmonization organization (could be HITSP) and a health IT certification organization (expected to be CCHIT)

Eligible Physician Incentives

- Physicians who are "meaningful users" of certified EHR/EMRs are entitled to receive up to $44,000 of total incentive payments over five years.

- For physicians serving in "health professional shortage areas", such as serving an underserved rural region and having a certain case mix of patients their payments will be increased by 10%.

- There will be no payment to any provider after 2016, or for those who qualify in 2015 or later

Medicare Payment Reductions if HITECH is not Adopted

For physicians who do not adopt such technology by 2015, Medicare payments will be reduced by the following factors in the years specified:

- 2015: One percent
- 2016: Two percent
- 2017 and beyond: Three percent
- 2018 and beyond: Plus one additional percent per year (max of 5%) if not automated 75%

What are the goals for HITECH?

- Federal Leadership for the Nationwide Exchange of Health Information. The legislation establishes a transparent and open process for the development of standards that will allow for the nationwide electronic exchange of information by the end of 2009.

- Build an interoperable Health information Technology structure. Investing $20 billion in health information technology infrastructure and Medicare and Medicaid incentives to encourage doctors and hospitals to use HIT to electronically exchange patient health information.

- Saving the government $10 billion: Plus, generating additional savings throughout the health sector, through improvements in quality of care and care coordination, and reductions in medical errors and duplicative care.

- Strengthen federal privacy and security law: This health information technology legislation improves and expands current Federal privacy and security protections for health information

Questions and Answers

Q. How soon will I need to make a decision?

It can take anywhere from 3-9 months to fully implement an electronic health records system. Additionally, the CMS incentives start paying in 2011 for the currently undefined standard of "meaningful use" of a "certified" EHR.

Finally, those practices who meet the "meaningful use" standard by 2011 will be able to leverage the greatest incentives.

Q. I already have an electronic health record. Can I qualify for the incentives?

The legislation is clear: early adopters will be able to leverage these incentives, too. Be sure to watch as terms are defined to ensure that your practice is meeting the standard of "meaningful use" of a "certified" EHR.

Q. What is "meaningful use"?

This term is still to be defined.

Q. What is a "certified" EHR? Does it mean CCHIT certified?

While there are plenty of details yet to be finalized,
elements of a certified EHR/EMR may include requirements related to e-Prescribing, interoperability and reporting on clinical quality measures.

There is some discussion within the industry that CeHIT will be the certifying standard. However, that is still to be determined.

Next Steps

While the requirements are a bit vague right now, the implications are clear: you should start your decision-making process soon, make a purchase and implement a certified EMR/EHR in time to earn the incentives. You'll want to have plenty of time for your physicians to be meeting the standard of "meaningful use" once it is defined.
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