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Electronic Health Records and Health Information Exchange: Implications for Rural Hospitals Rick Snyder Vice President, Finance & Information Services Oklahoma Hospital Association Brian Yeaman, MD Director, Physician Informatics Norman Regional Health System Greater Oklahoma City Hospital Council American Recovery and Reinvestment Act of 2009 (ARRA) • Incentive payments for meaningful use of certified Electronic Health Records • Hospitals and Eligible Professionals • Medicare incentives • Medicaid incentives Hospital Incentive Payments • Qualify as early as Oct 1, 2010 – Range for OK PPS: ~$2 million - $8 million – Median: $3.7 million – State potential: $311 million • Qualifying after FFY 2013 reduces amount • CAH: Medicare share of capital + 20% • FFY 2015: Incentives end; penalties begin Hospital Incentive Payments Medicaid • Requires: 10% Medicaid inpatient volume • CAHs can qualify – not based on costs – $500,000 to $1,200,000 • $108 million potential for OK hospitals • State has some discretion in design Eligible Professionals • Medicare incentives capped at $44,000 (plus 10% in HPSAs) OR • Medicaid incentives capped at $63,750 (if 30% of practice is Medicaid (Peds: 20%)) • Paid over 5 years beginning Jan. 2011 • Penalties for non-adoption begin Jan. 2015 • Hospital-based professionals ineligible EHR Adoption Rates • • • • 2008 RWJF study of 2,952 hospitals Comprehensive EHR:1.5% of US hospitals Basic EHR (physician, nursing notes): 7.6% Rural hospitals: – 0.6% comprehensive EHR – 4.0% basic EHR OHA members tell us: Plan to qualify? Yes No Selected EHR? Begun to install? 0 10 20 30 40 50 60 70 OHA members tell us: Potential obstacles to your hospital adopting EHR: 1. Insufficient IT staff 2. Incentive payments will likely not cover EHR costs 3. Medical Staff is not supportive 4. Cannot find a suitable EHR OHA members tell us: OHA can help most by… 1. 2. 3. 4. 5. Providing education on incentives Providing education on EHRs Offering a “group deal” Helping arrange financing Helping select EHR EHR Certification • Certification Commission for Health Information Technology (CCHIT) – CCHIT Certified – Preliminary ARRA certification – Site certification • HHS Health IT Policy Committee recommendation – Allow multiple Certification organizations – Accreditation process for certifying organizations • HHS will propose rules “Meaningful Use” • • • • • HIT Policy Committee HIT Standards Committee Public input Policy Committee’s August 19 matrix Proposed rule due by December 31 – 60 day comment period – Final rule: middle or end of spring 2010 • • • • NE Oklahoma origins Oklahoma City exchange Projects around the state Attractive pricing for hospitals and their physicians Regional Extension Centers – ARRA Section 3012 • National: HIT Research Center – Develop or recognize best practices to support and accelerate efforts to: • Adopt, implement, and effectively utilize HIT for – Electronic exchange and – Use of information • Regional Extension Centers – Provide technical Assistance – Disseminate best practices and other information – Support and accelerate efforts to adopt, implement, and utilize HIT Regional Extension Centers • ARRA law: – – – – Hospitals (public, NFP, CAH) Federally Qualified Health Centers Entities serving uninsured, medically underserved Individual and small group practices in primary care • Funding opportunity: – Primary care providers in small group practices, public hospitals & CAHs, CHCs and RHCs, other settings for the uninsured/medically underserved Regional Extension Centers • • • • OFMQ selected by stakeholders Three waves of funding $6.5 million potential for Oklahoma Substantial matching required in years 3 and 4 State Loan Program • 5:1 federal match for loans to providers • Administered through Medicaid agencies • OHCA will apply; has requested state match in SFY 2011 budget • Projected availability: October 2010 SHIECAP • State Health Information Exchange Cooperative Agreement Program • Planning and Implementation grants • State funding required – 2011 – 2012 – 2013 1/10 1/7 1/3 SHIECAP SHIECAP: Oklahoma Health Information Exchange • • • • “Network of networks” Planning phase beginning Jan. 2010 TBD: Governance, financing, … ONC approval of State plan required before implementation is funded • OHA participating in planning; volunteers? OHA Trade Show – HIT vendors • Spectron Corp – McKesson products & more – booth 320 • CPSI – booth 800 • Phoenix Health Systems – booth 111 – Meditech, CPSI, others, including MedSphere OpenVista Resources • http://healthit.ahrq.gov/RuralHITtoolbox • http://www.cchit.org/ • http://www.okoha.com/ARRA