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Rebooting the Digital Economy: HIT Stimulus Funding

Rebooting the Digital Economy: HIT Stimulus Funding. Sharon Canner Senior Director of Advocacy Programs CHIME March 4, 2009. CHIME. 1,300 healthcare chief information officers across the nation Diverse environments

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Rebooting the Digital Economy: HIT Stimulus Funding

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  1. Rebooting the Digital Economy: HIT Stimulus Funding Sharon CannerSenior Director of Advocacy ProgramsCHIMEMarch 4, 2009

  2. CHIME • 1,300 healthcare chief information officers across the nation • Diverse environments • Community hospitals, teaching and research institutions, rural/urban, for profit/nonprofit and faith-based • Strategic decision-makers for IT within their organization

  3. American Recovery and Reinvestment Act – HR 1 • $19 billion for HIT • $17 billion for Medicare & Medicaid incentives • $2 billion of HIT grants through the Office of the National Coordinator (ONC) • Estimated adoption rates in 10 years • Hospitals – 90% • Physicians – 70% • Other HIT related funding • Comparative Effectiveness Research -$1.1 billion • Broadband expansion - $4.7 billion

  4. Medicare Incentives to Hospitals • Meaningful use starting in 2011 • Inpatient PPS and CAH • Maximum incentive amount: ($2 million + (23,000-1,149)*200) * Medicare share • 4 years of payments, phase down 25 % each year • Penalties start in 2015 with reduction to market basket update

  5. Medicaid Incentives to Hospitals • States match up to 85% of allowable costs of EHR technology • Children’s hospitals and acute care hospitals with at least 10% Medicaid volume eligible • $40 million / year 2009-2015 • $20 million in 2016

  6. Medicare Incentives to Physicians • Can receive $15,000 ($18,000 if 2011 or 2012) first year • Phase down over four years • $12K, $8K, $4K, $2K • Penalties start in 2015 • 1% reduction in fee schedule amount • 2% in 2016 • 3% in 2017

  7. Health IT Workforce • Health professions workforce shortages addressed through scholarships, loan repayment and grants to training programs – $500 million • National Health Services Corps funding – $300 million • $75 million through 9/30/11 • $200 million for nurse and physician training

  8. Hospitals and Job Creation • Employed nearly 5.3 million people in 2007 • Spent about $304 billion on goods and services from other businesses • “Ripple” effects – each hospital job supports 2 or more jobs • Each dollar spent supports approximately $2.30 of additional business activity

  9. The Recession and Stimulus Funding • 3rd quarter 2008 0.1% decline in median total hospital margins • Lower non-operating revenues and slower Medicare, Medicaid and private payments (Thomas Reuters study) • 2009 passage of Stimulus and IT purchasing • Hospital IT penetration: • 18% “EMR” enabled hospitals • 92% “less mature” and often smaller organizations lack expertise to secure funding • Vendors working with many of the 92% on grant searches, creating partnerships and focusing on 2011 readiness

  10. Hospitals and Job Creation II • IT Implementation jobs are high value • Knowledge workers needed • EMR installation, maintenance and upgrading • Clinical systems analysts • Record auditing/analysis • Data coordinators • Network/systems/infrastructure • Vendor training of non-health workers for EMR implementation

  11. Summary • $19 billion in total funding for HIT • Inpatient PPS “meaningful” users of HIT beginning in 2011 eligible for $2 million + • Payments phase down 2011-2014 with penalties for noncompliance • Medicare incentives for physicians – beginning in 2011 • Preparations for “meaningful” use of HIT advised now • Knowledge workers needed for IT implementation

  12. Questions? Sharon Canner Senior Director, Advocacy Programs College of Healthcare Information Management Executives scanner@cio-chime.org (703) 562-8834 www.cio-chime.org

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