Responding To The Opportunity

Establishing Electronic Health Records

(EHRs)

Responding to theOpportunity

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The Opportunity

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Lowering Costs Through Investment in Electronic Health Information Technology Systems: Most medical records are still stored on paper, which makes it hard to coordinate care, measure quality or reduce medical errors and which costs twice as much as electronic claims. Obama will invest $10 billion a year over the next five years to move the U.S. health care system to broad adoption of standards-based electronic health information systems, including electronic health records, and will phase in requirements for full implementation of health IT. Obama will ensure that patients’ privacy is protected.  Excerpted from President Barack Obama’s “Plan for a Healthy America” 

The Motivation

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The Health Information Technology for Economic and Clinical Health Act (HITECH Act): implications for the adoption of health information technology, HIPAA, and privacy and security issuesThe HITECH Act of the American Recovery and Reinvestment Act imposes more stringent regulatory requirements under the security and privacy rules of HIPAA, increases civil penalties for a violation of HIPAA, provides funding for hospitals and physicians for the adoption of health information technology, and requires notification to patients of a security breach. These broad new requirements will necessitate compliance by covered entities, business associates and related vendors in the health care industry.2/23/2009

The Health Information Technology for Economic and Clinical Health

Act (HITECH)

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Includes $19 billion for health information technologyOf the $19 billion, $17 billion is earmarked for

Physician incentive bonuses from Medicare/MedicaidThe other $2 billion is to be used for HHS

discretionary funds, i.e., Standards development, Grants (AHRQ, HRSA, CMS) HIE Infrastructure, Loans to the States for EHR, Regional HIT Resource Centers, Telemedicine, Efficacy Studies

HHS = Health and Human ServicesAHRQ = Agency for Healthcare Research and QualityHRSA = Health Resources and Services AdministrationCMS = Centers for Medicare and Medicaid Services

The HITECH Act: Overview

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The Bill aims to accomplish four major goals:Health information technology infrastructure for

interoperability in placeStandards building upon CCHIT by 2010Saving the government $12 billionStrengthening Federal privacy and security law

Congressional Budget Office estimates that 90% of doctors and 70% of hospitals using comprehensive EHR by 2020

CCHIT = Certification Commission for Healthcare Information TechnologyEHR = Electronic Health Record

The HITECH Act: OverviewPhysician Incentives

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$17 billion in incentives require proof of “meaningful” useUse a certified product as determined appropriate by the Sec.

of HHSThe EHR technology must be connectedComplies with submission of reports on clinical quality

measuresThose that adopt first will benefit the most (declining

incentives)Physicians can earn between $44,ooo to $64,000 over five

years from Medicare/ Medicaid if they are utilizing an EHR in 2011Late adopters will receive significantly lessProviders may receive incentives under one of the programs2015: reductions in Medicare/Medicaid fees for non-EHR users

Hospitals can earn up to $2,000,000 plus discharge bonuses (total payout to them could be $10 million+)

The HITECH Act: OverviewHHS Discretionary Funds

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Secretary of HHS has to develop a plan to allocate $2 billion

Core areas of focus:Standards requirements due before the end of 2009HIE Infrastructure, National Health Information

Network (NHIN)Regional Health IT Resource CentersFederal grants through AHRQ, HRSA, CMSGrants to the states in 2010Promote advanced EHR – disease mgmt., quality

care measures

The HITECH Act: Standards

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Focused on rapidly increasing interoperability capabilities, as well as privacy protections within EHR products and regional HIE efforts

The Secretary of HHS will identify a standards harmonization organization and a health IT certification organization

The HITECH Act: OverviewPrivacy & Security

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Federal privacy and security laws (HIPAA) were expanded to protect patient health information, including:Defining which actions constitute a breach

(including some inadvertent disclosures)Imposing restrictions on certain disclosures, sales,

and marketing of protected health informationRequiring an accounting of disclosures to a patient

upon requestAuthorizing increased civil monetary penalties for

HIPAA violationsGranting authority to state attorneys general to

enforce HIPAA

Additional Areas of Funding

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Prevention and Wellness - $1 BillionCommunity Health Centers - $1.5 BillionTraining Primary Care Providers - $500 MillionIndian Health Service Facilities - $415 MillionNIH Research and Facilities - $10 Billion

The Next Steps

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Understanding The Federal Incentives

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$44,000 over 5 years

$3,000-$5,000/yr.estimate

$3,000-$5,000/yr.estimate

PQRI = Physician Quality Reporting Initiative

The Time is NOW!

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Funding is Front Loaded$30,000 (close to 70% of the funding) comes in the first two

years.It deceases significantly every year thereafter

You need to Demonstrate Meaningful UtilizationPurchase and Implementation are not enough. You must use it.Steps include: evaluate your workflows, develop your selection

criteria, select a vendor develop your implementation plan, install your EHR, connect to other providers and have your MDs fully functional.

A lot to do in a short period of time.Funding is Time Stamped

Funding starts in 2011, decreases over time and goes away after 2015.

Penalties begin in 2015.

What needs to be done

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Workflow evaluationDevelopment of a selection criteria for EHR

softwareVendor selectionImplementation planInstallation of EHR softwareConnect to other providersPractice fully functional

Advanced Medical Teknology can:

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Evaluate medical practice workflowsDevelop a needs analysis to determine the right

software needsAssist in selecting the best product vendorDevelop an implementation planConvert existing medical records to electronic format

either on-site or off-siteProtect and secure medical records according to

HIPAA guidelinesManage the installation of the EHR systemEnsure your connection to other providersMake certain that the practice is fully functional

410-696-8997 Baltimore office312-788-9776 Chicago office

800-869-5076 Toll-free443-836-1494 Fax

http://[email protected] [email protected]

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