Linker Technologies

The American Reinvestment and Recovery Act of 2009 and the HITECH Act

Stimulus Overview

The American Reinvestment and Recovery Act of 2009 allocates $2.1 billion for distribution by the Department of Health and Human Services through the Office of the National Coordinator for Health IT (ONCHIT). These funds are intended to assist healthcare providers adopt, implement, and effectively use certified EHR technology that allows for the electronic exchange of health information. Additionally, this funding will provide health information technology assistance in the areas of standards, technology, and health IT research, including regional centers designed to provide technical assistance and disseminate best practices to accelerate efforts to adopt, implement and effectively utilize healthcare information technology.

Incentive Payment Options

There are two incentive payment programs outlined under the HITECH Act - one through Medicare and another from Medicaid. Since providers can only submit for payment of an incentive bonus from one of the programs, each practice will need to analyze its public payer mix to determine where it stands to benefit most.

Both require that a provider prove "meaningful use" of an EHR product to qualify for the incentives, as well.

"Meaningful Use"

"Meaningful Use" is defined in three ways in the Bill:

• Use of a certified product complete with ePrescribing capability as determined appropriate by the Secretary of HHS
• The EHR technology is connected for the electronic exchange of PHI
• Complies with submission of reports on clinical quality measures

The final criteria for standards will be determined by the Secretary of Health & Human Services before the utilization incentives begin. Note that the Secretary of HHS shall seek to improve the use of electronic health records and healthcare quality over time by requiring more stringent measures of meaningful use.

Incentive timeline

For providers who implement electronic health records and demonstrate meaningful use, the highest incentive payments will be available from 2011 through 2013. Additional but reduced incentive payments will be available in 2014 and 2015, and penalties will begin in 2015.

You may qualify to receive either Medicare or Medicaid incentive payments. If you qualify for Medicaid incentive payments, you must waive your right to receive duplicative Medicare payments and demonstrate that you meet a minimum Medicaid patient caseload.