WASHINGTON – Rural health networks across the nation will receive more than $11.9 million to support the adoption of electronic health records and other health information technology.

The funds would also help rural health networks' participating eligible providers qualify for Medicare and Medicaid EHR incentive payments, administered by the Centers for Medicare & Medicaid Services, Health and Human Services Secretary Kathleen Sebelius said when she announced the funds on Sept. 2.

"We need health information technology to bring our healthcare system into the 21st century," said Sebelius. "These funds will help safety-net providers acquire state-of-the-art health information technology systems to ensure the delivery of quality care to some of the most remote areas of our country."

Each of 40 grantee organizations across the country will receive about $300,000 to purchase equipment, install broadband networks and provide training for staff. The pilot program was developed as a result of President Obama's Rural Health Initiative, which identifies healthcare IT as a priority area, and Sebelius' Rural HIT Taskforce.

Funding is distributed through HHS' Health Resources and Services Administration (HRSA) and comes from existing appropriations and authorization for the Rural Health Care Services Outreach and Rural Health Network Development Program.

"Collaboration is key to this effort," said HRSA Administrator Mary Wakefield. "Working together, these rural health networks will be in a better position to achieve economies of scale and enhance their services and organizational capacity."