Stimulus: Providers To Get Incentives for Adopting Electronic Health Records by 2011
Physician practices that adopt electronic health records (EHRs) by 2011 can earn a maximum potential bonus of $44,000 over five years through incentives authorized by the recent stimulus package.
The incentives are part of nearly $17 billion that the federal government will pay in bonuses to Medicare and Medicaid providers who implement EHRs.
The effort is part of the American Recovery and Reinvestment Act of 2009 and intends to reduce medical errors and promote efficiency by expanding use of EHRs.
Physicians, hospitals, and other medical professionals who adopt approved EHRs before 2011 or 2012 will be eligible for the maximum Medicare incentive payments. Those who adopt EHRs the first year can earn a maximum of $18,000. By the fifth year, they can earn $2,000. The total potential bonus is $44,000 over the five-year period.
Starting in 2014, Medicare will penalize physicians who have not rolled out EHRs. Doctors who have not adopted EHRs prior to 2015 and who do not obtain a hardship exemption face a 1% annual cut in Medicare payments each year until 2017, when the annual cuts rise to 3%.1
In 2008, just 13% of U.S. office-based physicians surveyed reported having "basic" EHR systems, while 4% had a "fully functional" system. The high cost of purchasing and installing an EHR system is the most-frequently reported hurdle to EHR adoption.
Reported benefits to EHR adoption include more timely access to medical records, streamlined prescription refills, and improved quality of communication with other medical providers. 2
1 American Recovery and Reinvestment Act of 2009. (111th Congress, HR 1) January 6, 2009. Section 4001. Pages 353-363.
2 DesRoches CM, Campbell EG, Rao SR, et al. Electronic Health Records in Ambulatory Care-A National Survey of Physicians. The New England Journal of Medicine. Vol. 359, No. 1. July 3, 2008. p. 50-60
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