The House passed an $819 billion economic stimulus bill Wednesday night that includes $20 billion for healthcare IT and policy changes that are expected to result in $30 billion in net bonuses for providers who adopt and use certified healthcare IT products over the next 10 years.
The bill includes the expected $2 billion for the Office of the National Coordinator for Health Information Technology, but policy changes to Medicaid and Medicare contain some surprising net gains for the industry, according to Justin Barnes, chairman of the Electronic Health Records Association and vice president of Marketing and Government Affairs at Greenway Medical Technologies.
The policy implications of changes to Medicare and Medicaid payments add up to a net increase of more than $30 billion for healthcare IT users.
According to Barnes, if the bill becomes law, over the next 10 years, Medicare would see a net increase of $17.7 billion in spending incorporating bonus payments and the eventual reduction of payment rates to hospitals and physicians that are not using qualifying health IT. Medicaid would see a similar increase on spending from bonus payments, but no penalties, as Medicaid would increase by $12.4 billion.
The Senate has yet to pass its version of the bill, but Barnes - who is close to the process - said he expects the Senate version to include the same incentives.
"This is a tremendous advancement for health IT and EHR adoption in America," Barnes said.
At a Capitol Hill press conference held Wednesday, the Healthcare Information and Management Systems Society (HIMSS) and the House 21st Century Health Care Caucus urged support for the health IT provisions in the House bill.
H. Stephen Lieber, HIMSS president and CEO said the bill would allow the industry to take important steps toward delivery quality care at lower costs. "The state of the economy and the healthcare system warrant a significant investment in health IT, especially in light of President Obama's calls to computerize all health records within five years," Lieber said.
On the down side, some experts fear the privacy changes in the bill could cost small businesses millions. The changes would require healthcare providers and businesses that operate now as business associates under HIPAA to beef up accountability and management to operate as covered entities.
