Healthcare IT slated for $19B in proposed stimulus package

By Diana Manos
10:31 AM

Congress is expected to approve $19 billion toward health information technology, with $17 billion allotted to incentives and $2 billion to jump-start healthcare IT adoption, according to a Wednesday night draft of the stimulus package.

The original House version of the bill designated $20 billion for healthcare IT, with the Senate setting aside $22 billion.

The $789 billion conference agreement between the House and Senate versions of the American Recovery and Reinvestment Act (H.R. 1) still faces potential amendments before a final vote, and some healthcare provisions of the bill were not scored as of Wednesday night.

Speaker of the House Nancy Pelosi (D-Calif.) said a final vote is expected before Saturday.

The conference agreement includes measures to codify the Office of the National Coordinator for Health Information Technology (ONC) and establish an open and transparent process led by the national coordinator to develop standards by 2010 that allow for secure nationwide electronic exchange of health information.

It also would improve and expand current federal privacy and security protections for health information, such as requiring that an individual be notified if there is an unauthorized disclosure or use of his or her health information and requiring a patient's permission to use his or her personal health information for marketing purposes.

Medicare and Medicaid HIT provisions in the bill include funding for the adoption and use of health IT, such as electronic health records by providers who serve Medicare and Medicaid patients. It would provide temporary bonus payments ranging from $44,000 to $64,000 for physicians and up to $11 million for hospitals that meaningfully use electronic health records.

The bill supports Medicare and Medicaid incentive payments for critical access hospitals, federally qualified health centers, rural health clinics, children's hospitals and others and phases in Medicare payment penalties for physicians and hospitals not using electronic health records starting in 2014. It seeks a 90 percent HIT adoption rate for physicians and 70 percent for hospitals for using electronic health records and would generate savings of more than $12 billion through improvements in quality of care and care coordination and reductions in medical errors and duplicative care.

Microsoft CEO Steve Ballmer sent a letter to Congress urging quick passage of the bill.

"We believe information technology can help create a connected health system that delivers predictive, preventive and personalized care – a system that will improve the health of Americans and help control healthcare spending," he said. "Government support for rapid adoption of information technology is essential and measurable outcomes are needed to help the Administration and Congress achieve the goals of increased access, lower healthcare costs and improved quality of care."

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