An electronic medical record or EMR is an IT based healthcare system designed to improve efficiency in practices of all sizes. As part of a hospital’s health information system, an EMR enables users to enter, store, retrieve and manipulate records. These systems have proven to be useful and a number of hospitals in the United States are leveraging them for delivering improved healthcare. Digitizing healthcare has resulted in a more efficient paperless work environment that allows physicians to spend more time on their practice and less time on administrative tasks.
Low Adoption of EMR in Hospitals
EMR systems have a lot to offer and ideally they should be eagerly deployed by practices. But the truth is that EMR adoption rates are still very low. A 2009 research by SK&A Information Services, Inc. illustrates that 67% of medical offices with four or more physicians are not using any type of EMR software. Research by the government also indicates that very few physicians have a complete EMR system. Many practices still prefer to use more traditional ways of managing medical records and are not entirely convinced about using an electronic medical record system.
Cost is one of the major barriers for EMR adoption. Market research illustrates that the cost of a good EMR system is about $25,000 to $35,000. Practices frequently must pay an upfront fee to own the system and also bear the various charges associated with the implementation. Researchers have observed that many practices are not willing to pay the recurring maintenance charges or hire additional IT staff to run these systems. Many physicians are happy with paper records systems because it doesn’t involve a lot of expenditure. Security is another reason for concern and a large number of practices think an EMR system may lead to a security breach at their healthcare facilities.
Hospitals have witnessed an increase in the number of computer hackers in recent years. These hackers can access patients’ medical records, get a hold of important information such as their social security numbers, and misuse the data for their benefit. This can be a nightmarish experience for both the patient and the hospital. These cases have been reported by practices using EMRs and they had a tough time dealing with angry patients. It has been reported that some hospitals don’t adopt electronic medical record systems because their patients don’t want to be treated in healthcare facilities that use these solutions. The patients are worried that their health information may be used by insurance companies and this may ultimately lead to denial of health and life insurance policies.
American Recovery and Reinvestment Act of 2009
The low adoption figures of EMR systems are alarming and the government is trying to encourage healthcare information technology adoption through the “American Recovery and Reinvestment Act of 2009.” The ARRA not only encourages physicians to adopt EMR systems in their healthcare facilities but also aims to give the much needed boost to a sour U.S. economy. The government hopes ARRA will drive EMR adoption and this will result in reduced medical errors. This in turn will save the nation tens of billions of dollars each year. The U.S. government has set aside $19 billion for practices that will adopt electronic medical record systems. These funds will be available from 2011 and those seeking grants under ARRA 2009 can receive $44,000 to adopt and ‘meaningfully use’ an EMR. The money will be given to practices over a period of five years, with the bulk of the payments provided in the first 2 years. The maximum amount physicians that accept Medicare can receive from the EMR stimulus is $44,000 but this increases to over $60,000 for physicians who are heavily involved in treating Medicaid patients. This economic stimulus package is expected to provide significant revenue opportunities for EMR vendors and service providers.
How to Qualify for the Stimulus Package?
The U.S. government is offering huge incentives to practices willing to adopt an EMR system and this has encouraged many physicians to research how they can benefit from this opportunity. To receive the benefits of the EMR stimulus individuals have to be qualified medical professionals, not be hospital based, and should be able to demonstrate meaningful use of a certified EMR. The term ‘meaningful use’ has not been clearly defined by the authorities and they expect to present the case by spring 2010.
In order for an EMR to be certified by the Certification Commission for Healthcare Information Technology ( CCHIT ) it must have robust features, including each of the following:
In addition, the practices are also required to submit Medicare Part B claims if they want to receive EMR stimulus funding. Practices can qualify even if they were using an EMR before the ARRA 2009 was passed. They can send their applications to qualify for the early adopter incentive and if they succeed in qualifying before 2011 can receive an additional $3,000 for the first year. The EMR stimulus is calculated by adding 75% of their Medicare Part B claims, up to the maximum amount allowed, per year. Practices interested in getting the early adopter bonus of $3,000 should use the EMR at the point of care. Physicians seeking the full amount should note that they must implement an EMR system by 2012. Please note that no EMR stimulus funding will be provided after 2015.
Penalties For Not Adopting an EMR System
Practices that don’t intend to adopt an EMR in near future will face penalties. Health practitioners should make efforts to demonstrate meaningful use of electronic medical records by 2015 to avoid a reduction in their Medicare payments. These reductions will increase with time
The EMR stimulus program is essentially a reimbursement offer which can be utilized by the many practices that don’t have the funds to invest in an electronic medical record system. The current unfavorable economic climate has also affected the purchase decisions of practices that are struggling with cost cuts and find it difficult to take out money for an expensive solution.
Practices should do their research to purchase an EMR system that qualifies for the stimulus package if they want to receive funding through this program. There are a number of EMR vendors in the market, and practices may find it difficult to quickly purchase a solution that fits their needs. But EMR experts suggest practices to act fast as 2011 is the first year for reimbursements. Practices that implement EMR technology in a meaningful fashion by 2011 will receive the highest payouts. These experts frequently advise physicians to choose the simplest cost–effective, scalable EMR system that meets their practice needs and conforms to meaningful use requirements.
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