How does the $19 billion that’s allocated to Health IT break down in the Stimulus Bill?
- There is $2.1 billion that will be available 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
Improvements in telemedicine delivery
The establishment of Regional Health IT Resource Centers
- There is an additional $17 billion to be applied to longer term utilization incentive bonuses for providers meeting certain criteria.
What are the different incentive options?
There are two incentive payment programs outlined under the HITECH Act – one through Medicare and another from Medicaid. Providers can only submit for payment of an incentive bonus from one of the programs so will need to analyze their organization’s public payer mix to determine where they stand to benefit most. Both require that a provider prove "meaningful use" of an EHR product to qualify for the incentives, as well.
How does the bill define adequate EMR utilization? What does "meaningful use" actually mean?
- "Meaningful Use" is defined in three ways in the Bill:
Use of a certified product complete with ePrescribing capability as determined appropriate by the Secretary of HHS
The EHR technology is connected for the electronic exchange of PHI
Complies with submission of reports on clinical quality measures
What are the bonus payments that will be available to physicians under Medicare?
Under Medicare, physicians will be eligible for the following as soon as they can demonstrate "meaningful use" (beginning in 2011):

Two notes:
Physicians operating in a "provider shortage area" will be eligible for an incremental increase of 10% in their bonus payments.
Physicians operating entirely in a hospital environment, such as anesthesiologists, pathologists and ED physicians, are ineligible.
As a physician, what if I don’t demonstrate use of an EHR after the incentives are in place?
Beginning in 2015, physicians not demonstrating meaningful use will have their Medicare fee schedule reduced. Reductions will be:
For 2015, down to 99 percent of the regular fee schedule
For 2016, down to 98 percent
For 2017 and each subsequent year, down to 97 percent
If the Secretary finds that less than 75% of eligible healthcare professionals are utilizing EHR beginning in 2018, the Secretary can further reduce the fee schedule to 96% and then 95% in subsequent years but not further.
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