HITECH Act Will Benefit Physician Practices
Physician practices are eligible to receive up to $44,000 per physician for meaningful use of certified EHR technology (as described here*):
- Up to $18,000 for the first year (dropping to $15,000 if first year is not 2011 or 2012); $12,000 for the second year; $ $8,000 in year 3, $4,000 in year 4 and $2,000 in year 5. (See table after the jump.)
- There will be no incentive payments for practices establishing their meaningful EHR use after 2014 (e.g., beginning 2015).
- Meaningful EHR use by physicians will be further defined by regulations, but at a minimum, includes the use of e-prescribing and participation in “the electronic exchange of health information to improve the quality of health care, such as promoting care coordination,” i.e., HIEs or RHIOs.
- For the electronic exchange of health information to improve the quality of health care, such as promoting care coordination.
- There is a 10% premium for physicians with practices in under-serviced areas.
- However, if a physician practice does not achieve meaningful EHR status by 2015, Medicare reimbursement fees will be reduced by 1% in 2015, 2% in 2016, 3% in 2017 and beyond; and the Secretary will have the right to reduce fees by 5% starting in 2018 for those practices where meaningful EHR use is under 75%.
In lieu of Medicare reimbursements, certain physician practices may be also eligible to receive for up to $65,000 in Medicaid reimbursement payments if they achieve standards of meaningful use similar to the Medicare requirement.
- States will reimburse up to 85% of the cost of implementation of EHR, possibly starting in 2011, but starting no later than 2016, with 2021 being the final year for Medicaid reimbursements.
- First year’s payment is capped at $25,000 and may include reimbursed costs associated with purchase, implementation or upgrade of EHR technology, or, if provider achieves the meaningful user status, costs incurred if EHR technology is already implemented.
- Subsequent annual reimbursements will not exceed $10,000 per annual payment, and are intended to cover costs of operation and maintenance of EHR technology.
* Physicians, unlike hospital systems, are specifically required to demonstrate the use of e-prescribing as part of their EHR use.
