Health Information Technology for Economic and Clinical Health (HITECH) Act (part of the Stimulus package known as the American Recovery and Reinvestment Act). Click Here for some FAQ.

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In keeping with our mission to be our clients’ most trusted business service, we will strive to ensure that we understand and keep you abreast of all the qualifications for reimbursement under that act. The act includes up to $44,000 in total incentives per physician under Medicare for “meaningful use” of an Electronic Health Record (EHR) starting in 2011. (Note: Physicians reimbursed by Medicaid can receive up to $63,500 starting in 2011 based on state-defined guidelines). As you may have read, many of the specifics of the act will be written and released during the year.

In order to qualify for incentive payments, physicians must:

Demonstrate "meaningful use" of a certified EHR. The Department of Health and Human Services (HHS) will be defining "meaningful use" in greater detail during the next few months of 2009. And, while the act does not specify what certification will mean, it is believed in the industry that the Certification Commission for Healthcare Information Technology (CCHIT) will be the certifying body. To be a "meaningful EHR user", the physician must satisfy three criteria:

The physician must use "certified EHR technology" in a meaningful manner, including electronic prescribing. The law calls for creation of a health information technology (HIT) Policy Committee, and an HIT Standards Committee. The HIT Policy Committee will focus on development of a nationwide health information infrastructure, while the HIT Standards Committee will recommend standards, implementation specifications and certification criteria. The Office of the National Coordinator for Health Information Technology (ONCHIT) is to adopt an initial set of standards, implementation specifications and certification criteria before December 31, 2009.

Use e-Prescribing. Your EHR should provide features that allow physicians to prescribe over the Internet.
Exchange information electronically. At present, we know that this means your EHR system is connected and supports electronic exchange of health information.The physician must demonstrate that the certified EHR technology is connected in a manner that provides for the electronic exchange of health information to improve the quality of health care, such as promoting care coordination.

The physician must submit information on clinical quality measures specified by HHS. Your EHR must be able to perform electronic data interchange of clinical information with applicable networks and report on quality measures.

The HITECH Act is clearly an ideal opportunity for physicians who use EHRs effectively to be rewarded and to stimulate adoption for those who aren’t currently using EHRs. As always, we are here to help you navigate through the complex healthcare environment, maximize your revenue, and focus on quality care.

Medicare Incentives:
Incentives will start in 2011 Available to all non-hospital physicians who see Medicare patients Eligible physicians can receive up to $44K over a five-year period. Minimum for Medicare participation: Providers must bill 125% of the total incentive received over the five-year period of incentive distribution. Physicians who have not adopted an EHR by January 1, 2015 will be penalized by reduced Medicare payments.

Medicare Incentives Schedule

Medicaid Incentives:
Available only to non-hospital based clinicians, including dentists, certified nurse midwives, and physician assistants practicing in rural health clinics or FQHCs. Medicaid incentives range up to $65K over a five-year period. Minimum for Medicaid participation: 30% of a clinician's patients must use Medicaid, with the exception of pediatricians, who only need to have 20% of their patients using Medicaid. Startup incentive up to $25,000 in state loan funds will be available in year one toward the purchase a certified EHR. After receiving startup funds, providers who can prove "meaningful use" can receive up to $10,000 annually for an additional four years. No penalities have been defined by Medicaid for lack of adoption Medicaid Incentives Schedule.

Medicaid Incentives Schedule

Notice: This is provided to you for informational purposes only. Nothing on these pages is or should be used as a substitute for professional advice of any kind. You should seek such advice solely from attorneys, accountants, compliance or other professionals you retain to advise you.