HITECH Economic Stimulus

March 5, 2009

President Obama has signed the American Recovery and Reinvestment Act in law and by doing so has encouraged hospitals and physicians in private practice to begin implementing electronic health records systems now to gain maximum financial benefits. The key component to this act is that providers use a "meaningful electronic health record". While the definition of this term is stil being worked out the general consensus is that providers who are using electronic medical records (EMR) systems by 2011 will quality for a total of $17.2 billion worth of incentive payments.

Stimulus Bill Specifics

• 17.2 billion will ultimately be distributed in pay-for-use funding for those proving “meaningful use” of certified EHRs.
• $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; and
• $50 million for the Veterans Benefits Administration
• (Note also that states and communities will also have discretionary spending that may be invested in healthcare IT as well.)
• 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.