Healthcare IT for Economic & Clinical Health (HITECH) Act

Practice Partner 9.5 and Lytec MD 2011 are ONC-ATCB 2011/2012 Complete EHR certified. Eligible providers using the EHR systems of certified vendors are qualified to receive federal stimulus monies upon demonstrating meaningful use of the technology.

• Providers have two options to participate: Medicare option for $44k or Medicaid option for $64k in government funding paid over five years. The criteria are different.
• Medicare option favors early adopters. They will be eligible for full $44,000.
• Medicaid option gets refund for the cost of implementation up to $64k. It does not have incentive for early implementation.

Medicare option may be easier to achieve. If implemented by 2011, providers would be eligible for full $44,000 payment. Providers in the underserved areas would get up to $48,400. Late comers will get less and eventually penalized if not implemented by 2015.

Incentive Payments for Medicare option:

	2011	2012	2013	2014
(2011)	18,000
(2012)	12,000
(2013)	8,000	12,000
(2014)	4,000	8,000	12,000	12,000
(2015)	2,000	4,000	8,000	8,000
(2016)	0	2,000	4,000	4,000
Total	$44,000	$44,000	$39,000	$24,000

Requirements for Medicare option

1. Eligible Professionals –  non-hospital based providers of the following:

• Doctor of medicine or osteopathy
• Doctor of dental surgery or dental medicine
• Doctor of podiatric medicine
• Doctor of optometry
• Chiropractor

2. Meaningful use of healthcare IT

• Use of a certified EHR in a meaningful manner. The certification and meaningful usage are to be defined by the HHS Secretary.
• EHR is connected in the manner to be able to exchange health information to improve the quality of health care.
• Reporting of measures using EHR.

3. Medicare Part B billing

• The payment amount available to a provider is 133% of the annual billed.
• Medicare Part B charges up to the maximum payment specified for the year.

Incentive Payments for Medicaid option:

• A payment equal to 85% of their net allowable technology cost.
• The allowable costs for the purchase and initial implementation of EHR cannot exceed
• $25k or include costs over a period of more than 5 years.
• Annual allowable costs not associated with initial implementation or purchase of EHR.
• Could not exceed $10k per annum or made over a period of more than 5 years.
• Aggregate allowable costs for these professional could not exceed $75k.

Requirements for Medicaid option

1. Eligible Professionals – non-hospital based providers of the following:

• the providers qualified for Medicare option
• certified nurse mid-wife
• nurse practitioner
• physician assistant

2. Meaningful use of healthcare IT – same as above

3. Patient Population – of which at least 30% receive medical assistance. (or 20% if the physician is a pediatrician)

Penalties if providers do not implement EHR by 2015:

2015      1% deduction in payments

2016      2%

2017+    3%

2018+    one additional percentage per year. Max 5%

For more info on the Stimulus Act, please visit: www.mckesson.com/doctors