The Department of Health and Human Services has awarded $162 million for state-federal health information exchange cooperative agreements. The funding has been awarded to 16 states – or their designated entities, such as state health departments.

The money is part of $2 billion allotted under the American Recovery and Reinvestment Act (ARRA) to advance healthcare IT adoption, and follows the Feb. 12 release of $385 million to 40 states or their designated entities. The awards announced March 15 complete the cooperative agreements to be funded by this program.

HHS Secretary Kathleen Sebelius said, with the most recent awards every state and eligible territory has now been given funds to advance state health information exchange under this program.

"These critical investments will help unleash the power of health information technology to cut costs, eliminate paperwork, and help doctors deliver high-quality, coordinated care to patients," Sebelius said.

"States are important partners in improving and expanding our electronic health records system," she said. "By improving the secure exchange of electronic health records between providers and hospitals within and across states, these awards mark a significant step in bringing our health system into the 21st century."

David Blumenthal, national coordinator for health information technology said the awards are critical to enabling care coordination and improving the quality and efficiency of healthcare. 

According to Blumenthal, the grants will now allow all states to start identifying ways to break down barriers that prevent the seamless exchange of information, and America will be able to give patients the access to care they deserve and expect.

The grant announcement is perhaps the government's "single biggest step toward a national health information system and the universal acceptance of electronic health records within our nation’s healthcare delivery system, said Craig May, director of public relations for the American Health Information Management Association.

"The American Health Information Management Association is particularly excited about this $162 million investment in health information technology because it extends funding for health information exchange across every state and eventually should lead to one’s health information being available when and where it is needed," May said.