Economic Stimulus - EHR  

What are the Opportunities this Bill Creates for Your Practice or Hospital?

Over $19 billion has been dedicated to healthcare information technology in the Health Information Technology for Economic and Clinical Health Act (HITECH), part of the 2009 American Recovery and Reinvestment Act that Congress has passed.

  • $17.2 billion will ultimately be distributed in pay-for-use funding for those proving "meaningful use" of certified EHR's (Electronic Health Records).
  • $2 billion in "jump start" funds will be rapidly disseminated as grants and loans to increase IT adoption at the discretion of the Office of the National Coordinator for Health Information Technology (ONCHIT).

 In addition, the following monies will either support or can be allocated to health IT investments:

  •  $4.7 billion for the National Telecommunications and Information Administration's Broadband Technology Opportunities Program.
  • $2.5 billion for the U.S. Department of Agriculture's Distance Learning, Telemedicine, and Broadband Program.
  • $1.5 billion for the community health centers through the Health Resources and Services Administration.
  • $500 million for the Social Security Administration.
  • $85 million for the Indian Health Service.
  • $50 million for the Veterans Benefits Administration.

If you are not currently using an EHR system - and you successfully implement and utilize one within the next 12 - 17 months - your practice may be able to earn up to $40,000 or more from 2010 to 2015. Plus, if you are engaged in PQRI reporting and electronic prescribing, you can potentially earn another $20,000 or more.

Also, you will start facing financial penalties if you do NOT demonstrate "meaningful use" of an EHR system by 2015. "Meaningful use" means that your EHR system is connected and providing the electronic exchange of health information to improve quality and promote care coordination. It also means that you are able to report on clinical quality measures as specified by the Secretary for Maximum Incentive.

Contact Us for More Information on the Economic Stimulus 

 

Contact us at 800.860.4427 for more information.

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Projected Minimum Incentives:

  • Year 1 - $18,000
  • Year 2 - $12,000
  • Year 3 - $  8,000
  • Year 4 - $  4,000
  • Year 5 - $  2,000
  • Penalties for non-adoption start in 2015

For example, the incentive for a 3 physician practice to implement an EHR system would be:

  • 2011 - $18,000 per physician x 3 = $54,000
  • 2012 - $12,000 per physician x 3 = $36,000
  • 2013 - $  8,000 per physician x 3 = $24,000
  • 2014 - $  4,000 per physician x 3 = $12,000
  • 2015 - $  2,000 per physician x 3 = $  6, 000
    Total Incentive for a 3 physician practice would be $132,000 ($44,000 per physician).

The average cost per physician to purchase, deploy, and train on an EHR solution is between $25,000 - $37,000 according to a recent study conducted by Medical Group Management Association (MGMA) Center for Research, University of Minnesota School of Public Health.

Coupled with Medicare's current electronic prescribing incentive, your practice stands to profit.  However , the stimulus incentives are available only to those practices demonstrating the "Meaningful" use of EHR software by January 1, 2011.  The electronic prescribing incentives are available now.

You need to begin your research now to be fully implemented and gathering the data to report and receive your reimbursements. GBS has extensive experience with EHR solutions and can help you realize these savings. Contact us today at 800.860.4427.