HITECH Act 2009 EHR Incentives

What is the HITECH Act?

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. Which are the incentives and when will you receive them?

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.

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.

Please, do not hesitate to contact me if you would like me to help your practice become HITECH act compliant

Lincoln Nguyen
lincolnn (at) salveomt.com
(714) 580-8826

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