Oklahoma, Kentucky issue first EHR incentive payments
This Artile appeared on Healthcare IT News:
Oklahoma, Kentucky issue first EHR incentive payments
January 06, 2011 | Molly Merrill, Associate Editor
BALTIMORE – Oklahoma and Kentucky have become the first states under the Medicaid EHR Incentive Program to make incentive payments to providers for the adoption of certified EHRs, according to CMS.
In Kentucky, the University of Kentucky (UK) Healthcare and Central Baptist Hospital in Lexington became the first hospitals in the country to receive checks under the 2009 stimulus law. UK received $2.8 million, and Central Baptist received $1.3 million.
In Oklahoma two physicians at the Gastorf Family Clinic of Durant, Okla., received $21,250 each, for having adopted certified EHRs.
According to CMS, Kentucky, Iowa, Louisiana and Oklahoma are the first states to receive the Medicaid incentive payments for the purchase and use of EHRs. The incentive program for hospitals is set to run through 2016, the year targeted for completion of a nationwide health information network.
Twenty-five additional providers in Kentucky said they have begun the application process to receive payment.
"Electronic health records can do so much to improve efficiency, reduce medical error and, ultimately, change the face of the American healthcare system," said that state's governor, Steve Beshear. "Being among the first states to receive the Medicaid incentive payments is evidence that Kentucky has established a structure to move these efforts forward and is truly leading the way in this nationwide effort. Kentucky providers are showing their commitment to becoming users of technology that not only stores records in a different way, but also makes it possible to exchange and receive records from other providers and health care facilities."
Over the next four years, Kentucky is expected to receive more than $100 million in incentive payments for hospitals to ensure that its healthcare community is working to implement electronic health record systems that can share and receive data as part of a statewide exchange of electronic health records.
"The incentive program is helping bolster the work of our providers to implement effective electronic health record systems within their facilities – and it also ensures that facilities are using systems that can connect to a statewide network," said Janie Miller, secretary of the Kentucky Cabinet for Health and Family Services Cabinet. "This dramatically enhances our efforts to encourage hospitals, pharmacies and medical practices to adopt systems that can communicate with one another and exchange health care information in a useful and meaningful way."
2011 - New Year Kicks Off EHR Incentives Registration
CMS and ONC encouraged broad participation and outlined online and in-person resources that are in
place to assist eligible professionals and eligible hospitals who wish to participate.
Beginning Jan. 3, 2011, registration will be available for eligible health care professionals and eligible
hospitals who wish to participate in the Medicare EHR incentive program. On January 3, registration
in the Medicaid EHR Incentive Program will also be available in Alaska, Iowa, Kentucky, Louisiana,
Oklahoma, Michigan, Mississippi, North Carolina, South Carolina, Tennessee, and Texas. In
February, registration will open in California, Missouri, and North Dakota. Other states likely will
launch their Medicaid EHR Incentive Programs during the spring and summer of 2011.
“With the start of registration, these landmark programs get underway, and patients, providers, and
the nation can begin to enjoy the benefits of widespread adoption of electronic health records,” said
CMS Administrator Donald Berwick, M.D. “CMS has many resources available to help providers
register and participate, and we look forward to working with eligible professionals and eligible
hospitals to facilitate the process, beginning on January 3 and going forward.”
“It’s time to get connected,” said David Blumenthal, M.D., MPP, National Coordinator for Health
Information Technology. “ONC and CMS have worked together over many months to prepare for the
startup on January 3. ONC’s Certified HIT Product List includes more than 130 certified EHR
systems or modules and is updated frequently. ONC also has hands-on assistance available across the
country through 62 Regional Extension Centers. We look forward to continuing to work with CMS to
assist eligible providers in 2011 and future years.”
Eligible professionals and eligible hospitals must register in order to participate in the Medicare and
Medicaid EHR incentive programs. They can do so, starting Jan. 3, 2011, at a registration site
maintained by CMS.
To prepare for registration, interested providers should first familiarize themselves with the incentive
programs’ requirements by visiting CMS’ Official Web Site for the Medicare and Medicaid EHR
Incentive Programs. The site provides general and detailed information on the programs, including
tabs on the path to payment, eligibility, meaningful use, certified EHR technology, and frequently
asked questions.
CMS announced the following key dates for the Medicare and Medicaid incentive programs’ first
year:
• Jan. 3, 2011 – Registration for the Medicare EHR incentive program begins.
• Jan. 3, 2011 –States that are ready may launch their incentive programs for Medicaid providers.
• January 2011 – Some state agencies begin issuing Medicaid EHR incentive payments.
• April 2011 – Attestation for the Medicare EHR incentive program begins.
• May 2011 – Issuing of Medicare EHR incentive payments expected to begin.
July 3, 2011 – Last day for eligible hospitals to begin their 90-day reporting period to
demonstrate meaningful use for the Medicare EHR incentive program for federal FY 2011.
•
Sept. 30, 2011 – Federal FY 2011 payment year ends at midnight for eligible hospitals and
critical access hospitals (CAHs).
•
Oct. 3, 2011 – Last day for eligible professionals to begin their 90-day reporting period for
calendar year 2011 to demonstrate meaningful use for the Medicare EHR incentive program.
•
Nov. 30, 2011 – Last day for eligible hospitals and CAHs to register and attest to receive an
incentive payment for federal fiscal year 2011.
•
• Dec. 31, 2011 – Calendar 2011 payment year ends for eligible professionals.
Under the Health Information Technology for Economic and Clinical Health Act (HITECH), part of
the American Recovery and Reinvestment Act of 2009, Medicare and Medicaid incentive payments
will be available to eligible professionals, eligible hospitals, and critical access hospitals (CAHs)
when they adopt certified EHR technology and successfully demonstrate “meaningful use” of the
technology in ways that improve quality, safety, and effectiveness of patient-centered care.
Professionals who meet the eligibility requirements for both the Medicare and Medicaid EHR
incentive programs must select which program they wish to participate in when they register. They
cannot participate in both programs; however, after receiving payment, they may change their
program selection once before 2015. Hospitals that are eligible for both programs can receive
payments from both Medicare and Medicaid.
Some states will launch their Medicaid EHR incentive programs beginning Jan. 3, 2011, but most will
launch their programs during the spring and summer. Eligible providers with questions about their
state’s launch date should contact their state Medicaid agency. Eligible providers seeking to
participate in the Medicaid programs must initiate registration at CMS’ registration site but must
complete the process through an eligibility verification site maintained by their state Medicaid
agency.
Under the EHR incentive programs, eligible professionals can receive as much as $44,000 over a fiveyear
period through Medicare. For Medicaid, eligible professionals can receive as much as $63,750
over six years. Under both Medicare and Medicaid, eligible hospitals may receive millions of dollars
for implementing and meaningfully using certified EHR technology.
“The benefits of EHRs are widely recognized, and support for the incentive programs is strong in the
health care field and among policymakers,” Dr. Berwick said. “The changeover from paper to
electronic records will be challenging for clinicians and hospitals, but CMS and ONC have taken
steps to ease the transition. We’ve provided flexibility in meeting the meaningful use requirements,
both agencies have conducted extensive outreach, and we have the resources in place to help
providers acquire certified EHR technology and meet the programs’ requirements. Immediate
registration is not required, but we encourage eligible providers to sign up as soon as they have
certified EHR technology and are prepared to participate. We are ready to help.”
Source: CMS Office of Public Affairs
2011 Key Dates for EMR Incentive Program
It’s not too early to begin marking your calendars with these key dates for EHR incentives that have
been released by the Centers for Medicare & Medicaid Services:
Jan. 3, 2011 – Registration for the Medicare EHR incentive program begins.
Jan. 3, 2011 –States that are ready (currently Alaska, Iowa, Kentucky, Louisiana, Oklahoma,
Michigan, Mississippi, North Carolina, South Carolina, Tennessee, and Texas) may launch
their incentive programs for Medicaid providers.
January 2011 – Some state agencies begin issuing Medicaid EHR incentive payments.
April 2011 – Attestation for the Medicare EHR incentive program begins.
May 2011 – Issuing of Medicare EHR incentive payments expected to begin.
July 3, 2011 – Last day for eligible hospitals to begin their 90-day reporting period to
demonstrate meaningful use for the Medicare EHR incentive program for federal FY 2011.
Sept. 30, 2011 – Federal FY 2011 payment year ends at midnight for eligible hospitals and
critical access hospitals (CAHs).
Oct. 3, 2011 – Last day for eligible professionals to begin their 90-day reporting period for
calendar year 2011 to demonstrate meaningful use for the Medicare EHR incentive program.
Nov. 30, 2011 – Last day for eligible hospitals and CAHs to register and attest to receive an
incentive payment for federal fiscal year 2011.
Dec. 31, 2011 – Calendar 2011 payment year ends for eligible professionals.
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Medicare & Medicaid Extenders Act of 2011
On Tuesday Dec. 7th, 2010, Senate Majority Leader Harry Reid (D-Nev.), Minority Leader Mitch McConnell (R-Ky.), Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa) introduced legislation that would extend through 2011 a fix to the Medicare physician payment formula. The bill, the Medicare and Medicaid Extenders Act of 2010, would avoid a 25% cut to Medicare physician payments that are scheduled to go in effect January 1, 2011.
The bill also includes extensions of other healthcare provisions such as Transitional Medical Assistance (TMA), which allows low-income families to maintain coverage as they transition into employment and the Special Diabetes program that funds research and treatment initiatives. Other provisions extend the qualifying individual (QI) program allowing Medicaid to pay Medicare part B premiums for low-income beneficiaries and the ambulance add-ons that extend the increased Medicare rates for ambulance services, including rural areas, through the end of 2011.
ONC Names Temporary Certification Bodies for 'Meaningful Use' Program
by Kate Ackerman, iHealthBeat Senior Editor
Last week, the Office of the National Coordinator for Health IT unveiled one of the final missing puzzle pieces of the "meaningful use" incentive program by naming the Certification Commission for Health IT and the Drummond Group as the first ONC-Authorized Testing and Certification Bodies under the temporary electronic health record certification program.
The 2009 federal economic stimulus package included Medicare and Medicaid incentive payments for physicians and hospitals that demonstrate meaningful use of certified EHRs. Prior to the announcement, no certifying groups were in place to determine whether vendors' EHR products have the functions necessary for health care providers to meet the federal government's meaningful use Stage 1 criteria.
National Coordinator for Health IT David Blumenthal said the announcement "is a crucial step because it ensures that certified EHR products will be available to support the achievement of the required meaningful use objectives, that these products will be aligned with one another on key standards, and that doctors and hospitals can invest with confidence in these certified systems."
EHR vendors can select which ONC-ATCB to use to get their products tested and certified. The ATCBs must use ONC-approved test procedures to test and certify EHR technology, but the ATCBs are responsible for individually and independently determining their pricing structure for EHR testing and certification.
CCHIT, Drummond Group Get Down to Work
Just a couple of days after announcing that CCHIT and the Drummond Group had been named ONC-ATCBs, ONC called the groups to Washington, D.C., for a training session.
The Drummond Group, which specializes in testing software for interoperability in a number of industries, will be able to certify complete EHRs and EHR modules for ambulatory and inpatient settings.
Rik Drummond, CEO of the Drummond Group, said, "We highly commend ONC and their accreditation process, which tested the details of our testing and certification process and our industry knowledge. Having started new tests with other industries, we found this approval process to be the most demanding and most thorough we have encountered."
The Drummond Group already is accepting applications for certification and has posted information, including pricing and testing processes, on its website.
CCHIT -- a not-for-profit group that previously had been the only organization authorized to certify EHRs -- plans to open up its certification program on Sept. 20.
CCHIT already offers several health IT certification programs. CCHIT Chair Karen Bell said, "We will be continuing to develop our branded CCHIT certification program, and then we have a very separate program for the HHS certification process." She said that vendors will be able to choose whether they want to be tested for certification under both programs or just one of the programs.
Some experts have questioned whether the newly named ONC-ATCBs will be prepared to handle the certification demand.
Bell said that "the demand is going to depend on how quickly a lot of the vendors will be able to incorporate some of the new criteria that came out in July." She added, "We actually don't know how many vendors are going to be ready to go forward, but ... we've been through this before. We have staff [who is] ready, waiting to jump in and move forward with this very quickly."
It still is unclear how closely the ONC-ATCBs will work together.
Bell said, "I don't know what ONC has in mind for this. I think that there's no question that we have done a huge amount of work in this area, and we're very dedicated to helping the delivery system and vendors move along the path of more effective use of [health] IT." However, she added, "We're a not-for-profit, and I know that Drummond is a for-profit. So I think we're in a position where we need to be very careful about how we share our resources and what we might consider information that we would need to keep in order to meet our own objectives."
An ONC spokesperson said, "The ONC-ATCBs will need to work together with respect to programmatic issues. Otherwise they are expected to act as independent entities."
Additional Certification Groups Possible
ONC said additional applications to become temporary certification and testing bodies are under review, but officials could not comment on what groups had applied, the number of applications under review or provide an estimate on the number of additional groups that could become ONC-ATCBs.
An ONC spokesperson said additional ONC-ATCBs will be announced as soon as they are authorized, which the spokesperson said is expected this fall.
On Sept. 1, Weno Healthcare announced that it submitted an application on Aug. 20 and that it expects to hear a decision by the end of September.
Tina Goodman, CEO of Weno Healthcare, said that if Weno Healthcare becomes an ONC-ATCB, it will offer a shorter certification process at a lower cost. The group already is accepting applications for quotes and no-obligation placements on its waiting list.
When asked whether she was concerned there might be too many authorized certification groups, Bell said she was not, adding, "There aren't a whole lot of certifying bodies, I suspect, or folks out there, that are going to want to get into this business for 15 months. Until there's a better concept of what the final process is going to look like and what it's going to entail, I think it's probably fair to say there will not be huge numbers of people in this game."
Looking Ahead to Permanent Certification Program
With last week's announcement about the ONC-ATCBs under the temporary certification program, many stakeholders already are looking ahead to ONC's permanent certification program that is set to begin in January 2012.
The permanent certification program separates the responsibility for performing testing and certification of EHR systems as recommended by the Health IT Policy Committee and the National Institute of Standards and Technology.
However, ONC officials said that organizations would be allowed to perform both testing and certification if they would like, but they would need to receive accreditation for both separately.
Bell said that CCHIT has not received any additional guidance from ONC on what the permanent certification program will entail, but restated the organization's intention to apply to become a permanent certification body.
MORE ON THE WEB
Read more: http://www.ihealthbeat.org/features/2010/onc-names-temporary-certification-bodies-for-meaningful-use-program.aspx#ixzz15Gfy8ExE
Save Money on your EMR with Section 179 of the IRS Tax Code
You've heard of section 179 and you probably know colleagues who say they've used it to save thousands of dollars. But what exactly is Section 179? And, more importantly, how can it help your practice?
What is Section 179?
Essentially, Section 179 of the IRS tax code allows businesses who purchase equipment during the year to deduct the FULL PURCHASE PRICE from their gross income. It's basically an incentive put out by the federal government to encourage businesses to buy equipment.
How does this relate to your practice?
When you purchase equipment, you typically get to expense them off a little at a time over several years through depreciation. For example, if your practice spends $50,000 on a new piece of equipment, you might write off $10,000 a year for five years. Section 179 allows you to write off the entire amount in one year.
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Limits on Section 179 for 2010
Section 179 does have limits - there is a $500,000 cap on the total amount that you can write off, and a $2 million limit on the total amount of the equipment purchased. Changes for 2010 do allow some benefits for businesses that exceed the $2 million equipment purchase limit.
Does Leasing/Financing Qualify for a Section 179 Deduction?
Absolutely! In fact, this can be a very effective tax strategy. It's possible to actually exceed the total loan or lease payment you make for the year!
Who Qualifies for Section 179?
You do and probably most equipment you are considering purchasing for your practice. However time is running out, you must purchase the equipment and put it into use during the 2010 tax year.
Still wondering if the time is right for EMR?
The fact remains that the Section 179 clock is ticking. If you are considering buying an EMR, act before time runs out - and it runs out on December 31, 2010.
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