HITECH Act will Benefit Hospitals
Each eligible hospital will receive an amount equal to at least $2 million (plus additional amounts calculated in accordance with each hospital’s Medicare discharges). Eligible hospitals are those hospitals deemed by HHS to be meaningful users of certified EHR technology.
“Meaningful users” are hospitals or physician practices able to demonstrate that one’s EHR technology is connected in a way that improves the quality of health care through reported results on clinical quality and other measures selected by the Secretary. Similarly, meaningful EHR use includes e-prescribing and quality reporting, and may be demonstrated by attestation, survey response, appropriate claims or quality reporting, or such other manner as the Secretary specifies.
“Certified EHR technology” will be technology that is certified by an independent body recognized by the Secretary as meeting standards for such technology established by the Secretary by rulemaking before Dec. 31, 2009.
Medicare incentives start Year 1 of “meaningful use” and adjusted down after Year 1 as follows:
- Year 2 – 75%
- Year 3 – 50%
- Year 4 – 25%
- Year 5 - 0%
- Phase down if start after 2014-2105
Hospitals can receive both Medicare and Medicaid incentives (calculations for the latter are linked to Medicaid discharges). Medicaid portion can be accelerated (50% in one year or 90% in two years). Some calculations indicate that the maximum combined Medicare and Medicaid payments may total up to $11 million, while $6 million to $8 million payments should be more typical. Below is a sample breakdown* of reimbursement payments (from both Medicare and Medicaid) for hospitals under the Act:
Hospitals may receive additional aid from the federal government if they participate in HHS’s health information technology extension program. At the heart of the program, the newly established HIT Research Center (“Center”) will provide technical assistance and disseminate best practices to support and accelerate efforts to implement and operate healthcare information technology in accordance with the standards, specifications and certification criteria to be established under the Act. As part of its duties, the Center will
- provide a forum for the exchange of knowledge and experience;
- accelerate the transfer of lessons learned;
- analyze and disseminate evidence and experience;
- provide technical assistance to regional and local information exchanges;
- develop solutions for barriers to the electronic exchange of information; and
- develop effective strategies for the use of HIT in medically underserved communities.
On a more local level, Regional Extension Centers (REC) will provide technical assistance and disseminate best practices learned from the Center to aid and accelerate implementation and use of HIT. Each REC must be affiliated with one or more nonprofit organizations. Support will be available for up to four years of funding aimed to cover up to 50 percent of each REC’s capital and operating expenses.
In making its funding decisions, HHS will consider the REC applicant's ability to provide assistance and utilize technology appropriate to the needs of particular categories of health care providers; the types of services the proposed REC will provide to health care providers; the geographical diversity and extent of the proposed REC’s service area; and the percentage of funding and amount of in-kind commitment from other sources the REC applicant can secure.
Public, nonprofit and critical access hospitals, community health centers, individual or small practices and entities that serve the uninsured and underinsured, as well as medically underserved persons, will be given priority in receiving assistance. In less than 90 days, HHS will produce a description of the extension program, including a detailed explanation of the program and the programs goals; procedures to be followed by the REC applicants; criteria for determining qualified REC applicants; and the maximum support levels expected to be available to REC’s under the program.
