The Obama administration announced new rules Tuesday that set aside billions of dollars in incentive payments to aid health care professionals and hospitals in adopting qualifying electronic health records over the next five years.

According to a statement from the Department of Health and Human Services, under the Health Information Technology for Economic and Clinical Health (HITECH) Act of 2009, eligible health care professionals and hospitals can qualify for Medicare and Medicaid incentive payments when they implement certified EHR technology and use it to achieve specified objectives.

The aim is to move to a computerized streamlined system, which could mean long-term savings.

"For years, health policy leaders on both sides of the aisle have urged adoption of electronic health records throughout our health care system to improve quality of care and ultimately lower costs," HHS Secretary Kathleen Sebelius said. "Today, with the leadership of the President and the Congress, we are making that goal a reality."

HHS announced two regulations. One (issued by the Centers for Medicare & Medicaid Services) explains what providers must do to qualify for the bonus payments and the other (issued by the Office of the National Coordinator for Health Information Technology) identifies the technical capabilities required for certified EHR technology.

As much as $27 billion may be expended, according to HHS. Eligible professionals may receive as much as $44,000 under Medicare and $63,750 under Medicaid, and hospitals may receive millions of dollars for implementation and meaningful use of certified EHRs under both Medicare and Medicaid.

Starting in 2015, hospitals and doctors could face financial penalties under Medicare if they are not using electronic health records.

According to HHS: "With 'meaningful use' definitions in place, EHR system vendors can ensure that their systems deliver the required capabilities, providers can be assured that the system they acquire will support achievement of 'meaningful use' objectives, and a concentrated five-year national initiative to adopt and use electronic records in health care can begin."

CMS' and ONC's final rules complement two other recently issued HHS rules. On June 24, ONC published a final rule establishing a temporary certification program for health information technology. And on July 8 the Office for Civil Rights announced a proposed rule that would strengthen and expand privacy, security, and enforcement protections under the Health Insurance Portability and Accountability Act of 1996.

As part of this process, HHS is establishing a nationwide network of Regional Extension Centers to assist providers in adopting and using in a meaningful way certified EHR technology.

"This is a turning point for electronic health records in America, and for improved quality and effectiveness in health care," said David Blumenthal, M.D., National Coordinator for Health Information Technology. "In delivering on the goals that Congress called for, we have sought to provide the leadership and coordination that are essential for a large, technology-based enterprise. At the same time, we have sought and received extensive input from the health care community, and we have drawn on their experience and wisdom to produce objectives that are both ambitious and achievable."

Get more:

A CMS/ONC fact sheet on the rules is available.

A technical fact sheet on ONC's standards and certification criteria final rule is available.

Instant Insights /

Obama offers big incentives for move to electronic health records

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