WASHINGTON – Two members of Congress on Wednesday introduced bi-partisan legislation aimed at driving information technology adoption within the healthcare industry through grants and loans to fund regional health information networks, exceptions to laws that prevent providers from exchanging technology and standards that would help IT systems communicate.

The 21st Century Health Information Act, sponsored by Reps. Patrick J. Kennedy (D-R.I.) and Tim Murphy (R-Pa.), also would increase Medicare payments to providers who adopt IT and would provide matching funds to states that provide funding under Medicaid for a healthcare IT infrastructure.

"Today, we can begin to take the bureaucracy out of the practice of medicine," said Kennedy, who was joined by Rep. Murphy, Sen. Hillary Rodham Clinton (D-N.Y.) and Former House Speaker Newt Gingrich (R-Ga.).

Specifically, the bill (H.R. 2234) calls for HHS to make 20 three-year grants to regional health information organizations, or RHIOs. These organizations, which are designed to help providers, health plans and other authorized users in an area exchange healthcare data, are at the center of the federal government's plan to create a larger, interconnected healthcare information infrastructure.

In addition, HHS could make 10-year loans to any RHIO. The bill does not authorize any new funding, but provides guidance on the $125 million for healthcare IT that the White House has requested in the fiscal year 20006 budget, according to Rep. Murphy.

Under the legislation, RHIOs or other organizations receiving federal funds would be required to purchase healthcare IT products that are certified by a group such as the Certification Commission for Healthcare Information Technology, a private sector group. If the CCHIT does not adopt interoperability and certification standards for electronic medical records within nine months, HHS could adopt standards or designate another group to set standards. Additionally, the bill would carve out expectations to Stark and anti-kickback laws that prevent providers from sharing IT tools. It would allow providers to share technology as long as it is used for a health information network.

Murphy, Kennedy, Sen. Clinton and Gingrich all touted technology's potential to improve patient care and reduce healthcare costs. Murphy said 45 percent of the government's spending in on healthcare.

"It is time to do it better," he said.

Sen. Clinton called the bill an "important first step" and said she is working with members of the Senate on a similar piece of bi-partisan legislation. Senate Majority Leader Bill Frist also is working on legislation that would address the technical requirements and financial incentives needed to help the healthcare system electronically exchange clinical information. Clinton said she did not know when a Senate bill would be introduced.

In the meantime, Michael Zamore, a policy advisor to Rep. Kennedy, said Murphy and Kennedy were attempting to get other members of the House to sign the legislation. The Healthcare Information and Management Systems Society, the American Academy of Family Physicians and the National Association of Manufacturers were among several groups that said they support the bill.

Several healthcare IT-related bills were introduced in Congress last year, but none passed.