The Health Care World Changed on February 17, 2009

“Because we know that spiraling healthcare costs are crushing families and businesses alike, we’re taking the most meaningful step in years towards modernizing our healthcare system. It’s an investment that will take the long overdue step of computerizing America’s medical records, to reduce the duplication and waste that costs billions of healthcare dollars and medical errors that cost thousands of lives each year. … We have done more in 30 days to advance the cause of healthcare reform than this country has done in an entire decade.”

President Barack Obama
February 17, 2009

What is the HITECH Act?

The HITECH Act is the Health Information Technology (HIT) section, under the recently approved American Recovery and Reinvestment Act. Under HITECH, the government has allocated $19 billion in incentives to adopt EHR technology. $17.2 billion will be directly allocated to incentive payments for physicians and hospitals that participate in Medicare or Medicaid programs.

Who is eligible to receive incentives and how much?

Providers who have or will implement a ‘certified’ Electronic Medical Record (EMR) prior to 2012 are eligible for 100% of their incentives. Providers must prove ‘meaningful’ use and be able to report their data. Practices which implement EMR technology past 2012 will be eligible for a decreased incentive. The incentive amount will also vary depending if the payment comes from Medicare, Medicaid, or if the provider is in a ‘provider shortage area’.

Medicare Incentives: Physicians who accept Medicare can receive up to $44,000 over the five years. Additionally, physicians operating in a "provider shortage area" will be eligible for an incremental increase of 10%. Those delivering care entirely in a hospital environment, such as anesthesiologists, pathologists and ED physicians, are ineligible.

Medicaid Incentives: Physicians who see more than 30% of patients paying with Medicaid (20% for pediatricians) are eligible for payments of up to $64,000 over five years.

Incentive Table



What is the definition of “certified” EMR and “meaningful” use of EMR technology?

The defining features of a “certified” EMR software will be determined the Secretary of Health and Human Services (HHS) by the end of 2009. The Department of HHS will determine the governing certification body. Currently there are two certification contenders: CCD and CCHIT.

“Meaningful” use will be defined by the Secretary of HHS by the end of 2009 as well. The definition is evolving, however the criteria may include:     ● Uses a certified EHR

    ● Submits most prescriptions electronically

    ● Reports clinical quality measures

    ● Had an EHR that interconnects electronically for healthcare delivery

    ● Reports billing codes indicating that patient encounters were recorded using an EHR.

How does a provider demonstrate “meaningful” use of EHR?

A professional must satisfy the demonstration requirement through means specified by the Secretary which may include the following:

    ● Self attestation

    ● Submission of claims with appropriate coding

    ● Survey response

    ● Reporting

Are the incentives different for physicians practicing in rural areas?

Yes. In the case of an eligible professional who predominately practices in underserved areas (i.e. a health professional shortage area), the incentives will increase by 25%.

Will penalties be enforced?

Yes. Penalties for failing to “meaningfully use” HIT will begin in 2015. Penalties for non-adoption after 2015; Increasing 1% every year up to 5% of professional fees.

How will you receive payment?

The payment may be in the form of a single consolidated payment or in the form of periodic installments.

Do I qualify for HITECH incentives?

Please call and speak with the GO Partners Practice Assessment and Analysis team to learn more.

Should I wait until all HITECH details become clear before buying an EHR?

No, because well-designed implementations may take up to one year and most reputable EHR companies will have significant implementation backlogs. You should consider finalizing your EHR purchase in 2009 in order to qualify for 2011 incentives and the full 5-year incentive bonus.

How can GO Partners help you?

GO Partners offers a certified EHR solution that can help you take advantage of the incentives. Our specialty specific application is very easy to use and has proven to be a reliable solution that streamlines orthopaedic practices.

OTHER EXISTING INCENTIVES

Are there any existing programs?

Two CMS (Centers for Medicare and Medicaid Services) quality improvement programs described in the 2009 Medicare Physician Fee Schedule final rule will provide the opportunity for incentives of up to 4% of total Medicare allowed charges for participation: the Physician Quality Reporting Initiative (PQRI) and the Electronic Prescribing (e-prescribing) Incentive Program. Click Here to go to PQRI.