Economic Stimulus Bill Makes EHR/EMR a Necessity for most Physicians             

When President Obama signed the American Recovery and Reinvestment Act into law it provided $19 billion to accelerate the adoption of electronic health records by physicians and hospitals.  Beginning in 2011, under the Medicare and Medicaid reimbursement portions of the plan, physicians who meet certain criteria for "meaningful use of a certified electronic health record" could qualify for reimbursement of up to $63,700.  Beginning in 2015 providers that are not on an EHR will have reimbursement reduced by 1%. In 2019 this penalty increases to 3%!!

CMS has a proposed rule to specify meaningful use and it includes items such as computerized order entry (CPOE), drug-drug/drug allergy checks, maintaining a problem list, generating prescriptions electronically, checking insurance eligibility, exchanging information among providers and submitting electronic data to immunization registries. Understanding that the majority of the country does not have the infrastructure to support the exchange of information, CMS is using three "stages" of requirements implemented over time.

McKesson is monitoring events very closely, has lobbyists on Capitol Hill, and strongly believes that many of the standards set by CCHIT will become part of EHR certification.  McKesson Practice Partner is 2009 CCHIT certified.

See the charts below for the payments you could receive.  You can participate in either the Medicare or the Medicaid versions - not both.

These charts are guidelines only.  The actual reimbursement you receive may differ.

You must have a minimum of $26,000 per year in Medicare charges to qualify for the highest, first year payment from Medicare.   The cost of the system and ongoing maintenance is irrelevant to the Medicare calculation.  An additional 10% is given to providers in Healthcare Professional Shortage areas. 

Note that you only get the highest reimbursement from Medicare for implementations before 2011 and 2012.  It is yet to be determined how these payments will be made or what reporting requirements there may be to secure the funding.

If you don't see enough Medicare patients, you may instead qualify for the Medicaid provision of the bill.  The formula is somewhat more complicated.  You only qualify if your practice is more than 30% Medicaid.  If you are a pediatrician however, you qualify with 20% Medicaid volume. 

Payments are calculated based on a reimbursement of 85% of the cost of the system in the initial year (up to $24,500), then 85% of the updates and service (up to $9,800) for the next four years.  Maximum allowed system cost is $75,000.  Unlike the Medicare program, you can adopt an EHR later and still qualify for the highest reimbursement.

Do Not Wait Until it's Too Late!!

Properly implementing an EHR in your practice to meet stimulus requirements will take significant time and effort. HCDS and other vendors anticipate a rush of EHR installations as the funds start to become available.  Contact us to arrange a demonstration and quote today.  800-486-2273.