Michigan health care providers are abuzz with anticipation over how much of the $36 billion in set-aside federal stimulus money the state will receive for implementing electronic health records.
The stimulus package passed earlier this year also includes $1.25 billion for Michigan providers to cover services like prescription drug funding and health care for indigent patients.
But much of the industry is awaiting direction on how the federal government intends to disperse billions in health IT funds and who would qualify.
The Obama administration has set the goal of digitizing the nation’s health care industry in five years, but there is little clarity over which providers would qualify for reimbursement.
The funds won’t become available until 2011, and providers will have to demonstrate some level of compliance with health IT in order to qualify. Those that don’t risk seeing reduced Medicare reimbursements beginning in 2015.
That means physicians will have to find ways to front the costs to implement EHR systems.
“They would have to have this certified EHR technology… and be using it by 2011,” said Beth Nagel, health information technology manager for the Michigan Department of Community Health. “There is a lot of opportunity right now for physicians.
“However, the biggest issue is that we’re still waiting for some definition.”
One major unanswered question, Nagel said, is the definition of the “meaningful use” requirement that will determine whether providers are complying with health IT.
Up-front costs are sure to be a sticking point with many hospitals and physicians offices.
A recent PricewaterhouseCoopers Health Research Institute report estimated that an average three-physician practice could spend up to $296,000 over two years to buy and maintain an EHR system. Each of those physicians at the practice could qualify for up to $44,000 for adopting certified EHR systems.
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