The HITECH Act is the Health Information Technology (HIT) section, under the recently approved American Recovery and Reinvestment Act. Under HITECH, the government has allocated $19.2 billion in incentives to adopt EHR technology.
How much funding has been allocated for HITECH?
The recovery bill commits $19 billion in grants and incentives for companies and practices to buy health information technology in an effort to improve efficiency and quality in the health system. The funding will be allocated as follows:
- $17.2 billion will be distributed in pay-for-use funding for those proving "meaningful use" of certified EHRs.
- $2 billion in "jump start" funds to develop the infrastructure and programs to increase HIT adoption.
Who is eligible to receive incentives?
Providers that implement and have a meaningful use of a certified EHR prior to 2015 are eligible for incentives.
What is the definition of "meaningful" use of EHR technology?
Meaningful users are those that meet each of the following criteria:
- Uses a certified EHR
- Submits most prescriptions electronically
- Reports clinical quality measures
- Had an EHR that interconnects electronically for healthcare delivery
- Reports billing codes indicating that patient encounters were recorded using an EHR.
*The definition of "meaningful" use is still evolving.
How does a provider demonstrate "meaningful" use of EHR?
A professional must satisfy the demonstration requirement through means specified by the Secretary which may include the following:
- Self attestation
- Submission of claims with appropriate coding
- Survey response
- Reporting
Which EHRs are eligible for funding or reimbursement? A certified EHR technology is one that meets specific standards outlined in the bill. CCHIT Certification sets some standards for EHR products and has the potential to reduce buying risk for purchasers.
What are the incentives and when will you receive them?
Your practice may be eligible for the following incentives per physician:
- Year 1: $15,000 ($18,000, if 1st year 2011 or 2012)
- Year 2: $12,000
- Year 3: $8,000
- Year 4: $4,000
- Year 5: $2,000
- Last payment year will be in 2015
- Penalties for non-adoption after 2015; 1% up to 5% of professional fees
Are the incentives different for physicians practicing in rural areas?
Yes. In the case of an eligible professional who predominately practices in underserved areas (i.e. a health professional shortage area), the incentives will increase by 25%.
Will penalties be enforced?
Yes. Penalties for failing to "meaningfully use" HIT will begin in 2015. Penalties for non-adoption after 2015; Increasing 1% every year up to 5% of professional fees.
How will you receive payment?
The payment may be in the form of a single consolidated payment or in the form of periodic installments.
Do I qualify for HITECH incentives even if I am a current ProngoCIS user?
Yes, but you must be live buy 2011 due to certification requirements. Octave Solutions is working diligently to offer a painless implementation experience designed around your schedule.
Should I wait until all HITECH details become clear before buying an EHR?
No, because well-designed implementations may take up to one year and most reputable EHR companies will have significant implementation backlogs. You should consider finalizing your EHR purchase in 2009 in order to qualify for 2011 incentives and the full 5-year incentive bonus.
Can I qualify for HITECH incentives if I implement a solution in the ASC only?
No, you must implement the EHR in the medical office as well.
OTHER EXISTING INCENTIVES
Are there any existing programs? Two CMS (Centers for Medicare and Medicaid Services) quality improvement programs described in the 2009 Medicare Physician Fee Schedule final rule will provide the opportunity for incentives of up to 4% of total Medicare allowed charges for participation: the Physician Quality Reporting Initiative (PQRI) and the Electronic Prescribing (e-prescribing) Incentive Program.
What is PQRI?
PQRI, first established in 2006, offers incentives to Medicare providers who report on quality performance measures.
What is e-prescribing?
The e-prescribing program offers incentives to clinicians who prescribe electronically to the pharmacy.
How can physicians participate in the programs?
Participation in both programs involves the reporting of designated administrative codes on billing claims.
How many reports must be submitted to take advantage of the incentives?
Physicians who report on at least 3 measures applicable to their practice between January 1, 2009 and December 31, 2009 will receive a bonus of up to 2% of their total Medicare allowed charges for that period. To be eligible for the bonus, measures must be reported in at least 80% of encounters where a measure applies. The incentive is awarded for reporting on applicable measures, regardless of whether or not the measure was met.
What are the incentives for physicians who e-prescribe?
Clinicians who meet the requirements for being a successful e-prescriber will be eligible for an additional 2% bonus in 2009 and 2010, a 1% bonus in 2011 and 2012, and a 0.5% bonus in 2013. Clinicians who do not meet the requirements for being a successful e-prescriber will have their payments reduced by 1% in 2012, 1.5% in 2013, and 2% in 2014 and in each subsequent year.
Now is the best time to automate your practice with PrognoCIS EMR!
Octave Solutions has prepared a Stimulus White Paper that explains where the stimulus incentives come from, who they are applicable to, and when they are available for both national and state incentives. Download the white paper here.
