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House passes stimulus package with $30 billion in net health IT bonuses

House passes stimulus package with $30 billion in net health IT bonuses

January 29, 2009 | Diana Manos, Senior Editor

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WASHINGTON – The House passed an $819 billion economic stimulus bill Wednesday night that includes $20 billion for healthcare IT and policy changes that are expected to result in $30 billion in net bonuses for providers who adopt and use certified healthcare IT products over the next 10 years.

The bill includes the expected $2 billion for the Office of the National Coordinator for Health Information Technology, but policy changes to Medicaid and Medicare contain some surprising net gains for the industry, according to Justin Barnes, chairman of the Electronic Health Records Association and vice president of Marketing and Government Affairs at Greenway Medical Technologies.

The policy implications of changes to Medicare and Medicaid payments add up to a net increase of more than $30 billion for healthcare IT users.

According to Barnes, if the bill becomes law, over the next 10 years, Medicare would see a net increase of $17.7 billion in spending incorporating bonus payments and the eventual reduction of payment rates to hospitals and physicians that are not using qualifying health IT. Medicaid would see a similar increase on spending from bonus payments, but no penalties, as Medicaid would increase by $12.4 billion.

The Senate has yet to pass its version of the bill, but Barnes - who is close to the process - said he expects the Senate version to include the same incentives.

"This is a tremendous advancement for health IT and EHR adoption in America," Barnes said.

At a Capitol Hill press conference held Wednesday, the Healthcare Information and Management Systems Society (HIMSS) and the House 21st Century Health Care Caucus urged support for the health IT provisions in the House bill.

H. Stephen Lieber, HIMSS president and CEO said the bill would allow the industry to take important steps toward delivery quality care at lower costs. "The state of the economy and the healthcare system warrant a significant investment in health IT, especially in light of President Obama's calls to computerize all health records within five years," Lieber said.

On the down side, some experts fear the privacy changes in the bill could cost small businesses millions. The changes would require healthcare providers and businesses that operate now as business associates under HIPAA to beef up accountability and management to operate as covered entities.

Related Topics:
  • Justin Barnes
  • Medicare
  • stimulus
  • Washington

Reader Comments (2)Login to Post a Comment

Jinha says:

February 02, 2009 | 11:05AM GMT

The Audacious IT budget

Time and opportunities are just right for the Government to take a bold step in spearing a leading role in the adoption of health care information Technology. History tells us that similar bold steps were taken by the govt in the 50's when the national highways and bridges were built which became the foundation of change and growth. Now is the time for the govt to take similar charge, and build an Information Medical Technology highway by piecing together the fragmented parts of technological advancements made possible through the private sectors of the nation. An orderely mandate which will force the adoption of standards and compliance, I believe, will help channelize private and public sector resources together into a much awaited and desired goal of health care Utopia.

Jay Sinha

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TomMariner says:

February 02, 2009 | 9:20AM GMT

30 $Billion Health IT Bonuses

Healthcare Technology is more than IT!

Remember that the EHR's are more than physician notes and insurance information. The whole field of Medical Devices needs to continue be robust and innovative to feed the vast majority of the data in the patient's records.

I love the fact that money is being spent to help our nation's patients and doctors but fear we will get there and then wonder, "hey where's the stuff we want to store in these records."

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