Jul

1

EHR Incentive Payments for Physicians

Filed Under Medical Practice Management Software

The U.S. Government is so committed to physicians and health maintenance related organizations going electronic with their medical records that they are offering major financial incentives for doctors purchasing EMR software or EHR software.

In February 2009, the American Recovery & Reinvestment Act was signed into law.  The HiTech Act is the health IT component of that bill. It provides significant dollar incentives for physicians to move from paper-based medical information tracking to computerized Electronic Health Records, that medical practice management software and patient information management systems.

If you are a physician contemplating this major change, you can appreciate how much EHR system will change how your day is structured, and the costs associated with such making this change.  You and your staff will have to  transition from your current method of storing data to the electronic medical records (or, as the government would prefer to call it “health records” system). You will have to train yourself and your staff to use this new system. You may well have to pay outside consultants to help you implement such a system.

The HiTech Act allocates $36 billion for incentive payments to healthcare providers who demonstrate use of Electronic Health Records (EHR). There are two allocation programs, one for physicians who have many Medicaid patients, and a second program for those who accept Medicare.

Medicaid providers: Doctors in practices where 30% percent of their patients pay via Medicaid, are eligible for a payment of $64,000 over five years. (for pediatricians, the required percentage of Medicaid patients is only 20%)

Medicare providers: Doctors who accept Medicare patients (even if they do not accept Medicaid) can receive payment of up to $44,000 over five years.

In addition, doctors who make use of ePrescribing initiatives that are part of the Medicare Improvements for Patients and Providers Act of 2008 and PQRI incentives, can earn between $6,000 and $8,000 without moving over to the Electronic Health Records System.

In order to qualify for the Stimulus incentive payments, doctors have to demonstrate three things:

  • Purchase /use of a “certified” EHR product (meeting HHS standards) that has an ePrescription capability
  • Connected access to a patient’s full health history via electronic connectivity to other health providers
  • The ability to report on the providers technology use to HHS

There are also incentives to implement EHR very quickly. Incentives include payment for up to 5 years, but the bulk of the payments come in the first years,  In addition, physicians receiving payments must demonstrate that they are making use of the medicare component of the EHR.  If a physician accepts payments, but does not demonstrate use of the system, penalties can be assessed.

If you as a physician have been contemplating the move to an all –software medical practice management system, perhaps the time is now.  Healthcare legislation will be pushing your practice in the direction of EMR and EHS.  Investigate and compare certified EHR and EMR software now, and see what medical software makes sense for you.

Bookmark and Share