Federal and State Government News Update

 

Edition Four (2/24/09)

Money to Boost EHR Initiatives Nationwide: Stimulus
Modern Healthcare, subscription needed 2/23/09
Most of the federal funding for health care information technology initiatives under the $787 billion American Recovery and Reinvestment Act of 2009 will come from two main sources. The much larger of the two I.T. boosts—estimated at $17.2 billion—will come from I.T. provider adoption incentive programs under Medicare and Medicaid. The smaller—yet still sizable—source of funding will come from a direct appropriation by Congress of $2 billion to the Office of the National Coordinator at HHS. It is to be used for an assortment of grants, loans, and demonstration programs.

6 Governors May Reject Portions of Stimulus
The New York Times, subscription needed 2/22/09
A handful of Republican governors say they may reject portions of the federal stimulus money, raising objections from lawmakers, mayors, and other critics that they are placing political ideology before the interest of constituents who need help and budgets with huge deficits. Republican governors from Alaska, Idaho, Louisiana, Mississippi, South Carolina, and Texas have indicated that they might reject portions of the federal stimulus money because they might not want to meet the requirements that accompany the funds or use federal funds to expand programs, such as Medicaid.

At Meeting, Governors Share Plans for Stimulus Funds
The Washington Post, 2/20/09
The nation's governors, battered by plunging tax revenue and growing budget deficits in their states, converged on Washington yesterday and outlined their plans to spend billions of federal dollars coming their way from President Obama's economic stimulus legislation. The governors said the money will be only a down payment toward fixing the country's crumbling infrastructure, with some predicting that the economies in their states will worsen.

Stimulus Relief is a State of Mind
HealthLeaders Media, 2/20/09
The mere fact that the $787 billion stimulus package was signed into law will give some health care CEOs the confidence to move forward on some of their strategic priorities that have been on hold since the economy collapsed this past fall. Of course, those organizations will likely be the ones that have cash reserves, can access the credit markets, and have a strong operating margin. The remaining hospitals may decide to wait until all the details of the American Recovery and Reinvestment Act are hashed out.

GPO Publishes Official Stimulus Law
Health Data Management, 2/20/09
The Government Printing Office has
published the authentic version of the American Recovery and Reinvestment Act of 2009, which was the economic stimulus bill signed by President Obama on Feb. 17. This is the final version the government will use as it implements provisions of the law, including the Health Information Technology for Economic and Clinical Health Act (HITECH Act).

Will CCHIT have Competition Due to Stimulus Law?
Part 2
Modern Healthcare, subscription needed 2/20/09
There will be some major changes in the way the federal government oversees its health information technology program apart from the whopping increase in funding for I.T. system acquisition, according to the 300-plus pages of health I.T.-related language in the 785-page American Recovery and Reinvestment Act of 2009. The massive stimulus bill does not specifically name another Bush administration era I.T. body, the not-for-profit CCHIT. However, the new law does say that the national coordinator, in consultation with the director of the National Institute of Standards and Technology, “shall keep or recognize a program or programs for the voluntary certification of health information technology as being in compliance with applicable certification criteria under this” law.

A Big Stimulus Boost for Electronic Health Records
Technology Review, 2/20/09
Physicians and information specialists across the country are feverishly figuring out how to best prepare for the impending availability of $19 billion designated for health care I.T. spending in the stimulus bill. Broadly deploying EHRs will require special support for small private practices across the country. These physicians provide up to 80 percent of the nation's health care, but fewer than 20 percent of them are currently using EHRs. In a letter sent to the White House and to Congress last week, a number of physicians and health care administrators from across the country urged the incorporation of community-level guidance into the bill, which included two successful examples of community-based deployments: New York's primary-care information project and the Massachusetts eHealth Collaborative.

Will AHIC Successor NeHC Survive Stimulus Reqs?
Part 1
Modern Healthcare, subscription needed 2/19/09
The new law appears to undo at least one of the last efforts of the Bush/Leavitt I.T. program—the attempted privatization of the key national HIT policy advisory board, the American Health Information Community. Instead, the law creates a national HIT Policy Committee, a government-controlled organization that will operate, as AHIC did, under the Federal Advisory Committee Act. The HIT Policy Committee will make policy recommendations to the national coordinator. The HIT Standards Committee is to adopt an initial set of standards, implementation specifications, and I.T. system certification criteria by December 31, 2009. This initial set is to be forwarded to the national coordinator for approval.

Security Challenges of Electronic Medical Records
Computerworld, 2/19/09
Under his recently unveiled fiscal stimulus plan, President Obama seeks to invest up to $20 Billion in federal funds to achieve widespread deployment of EMRs. A principal reason for his initiative is to improve our nation's health care system by reducing long term costs and increasing effectiveness of our health outlays. So what exactly is an EMR and what does this new direction mean for security and privacy professionals?

Kansas Governor Seen as Top Choice in Health Post
The New York Times, subscription needed 2/19/09
Gov. Kathleen Sebelius of Kansas is emerging as President Obama's top choice for secretary of health and human services, advisers said. Should she be nominated, Sebelius would bring eight years of experience as her state's insurance commissioner as well as six years as a governor running a state Medicaid program. But with President Obama about to begin a drive to expand health coverage, her strongest asset may be her record of navigating partisan politics as a Democrat in one of the country's most Republican states.

Stimulus Bill Dramatically Modifies HIPAA Rules
Wisconsin Technology Network, 2/18/09
The American Recovery and Reinvestment Act contains surprising modifications to HIPAA's Privacy and Security Rules. These changes will likely require every business associate agreement to be modified. The Act also, for the first time, requires business associates to comply directly with many of HIPAA's rules and subjects business associates to HIPAA’s civil and criminal penalties. The Act increases the penalties for various HIPAA violations and dramatically expands other remedial actions. The changes are significant to all covered entities, but are most challenging for business associates, who now face a host of new requirements.

Economic Stimulus Package to Offset Costly EHR Implementation
HealthLeaders, 2/17/09
Health care providers looking for assistance with the adoption of EHRs may be in for a pleasant surprise, according to the Health Information Technology (HIT) Extension Program included in the American Recovery and Reinvestment Act. Title XIII of the Act focuses on HIT and quality, with $19 billion in grants and loans set aside for infrastructure and incentive payments under Medicare and Medicaid for providers who adopt certified EHR technology. The grants and loans include $17 billion slated for incentives, with $2 billion allotted to jump-start health I.T. adoption.

'Dear Mr. President,' Regarding EHRs
Government Health IT, 2/17/09
Letters from 21 health information technology leaders to the President Obama portray a road map for building an electronic health care system which rewards productivity, retains knowledge, and supports effectiveness of care.

Obama Team Has Billions to Spend, but Few Ready to Do It
The New York Times, subscription needed 2/17/09
President Obama blasted through all sorts of speed records pushing a $787 billion economic plan through Congress, arguing it was too urgent to wait. But even after signing it into law, he faces another problem: virtually no one is in place at his cabinet departments to actually spend a lot of the money. Three cabinet jobs remain unfilled, only 2 of the 15 cabinet departments have deputy secretaries confirmed, and the vast majority of lower-level political jobs remain vacant.

National eHealth Collaborative Sounds Off on Stimulus Plan
Insurance Networking News, 2/17/09
With the economy weighing heavily on the brows of insurers across the United States and abroad, all eyes are turned to how the government will facilitate compliance with this broad-reaching legislation. The American Recovery and Reinvestment Act will pave the way for many changes, one of which will be the status of eHealth initiatives, such as the wide-scale adoption of electronic health records.

Report: U.S. Healthcare Could Save Billions
Health Management Technology, 2/09
A report from the Deloitte Center for Health Solutions asserts that over the span of a decade, broad policy changes coupled with increased health I.T. adoption could save the U.S. more than $530 billion in health care costs. The consulting firm proposes $220 billion in new spending initially over three years on e-prescribing and electronic medical records adoption, as well as assisting primary care physicians to improve coordination of patient care. Americans spent $2.2 trillion on health care in 2007, accounting for 16.2 percent of the total U.S. gross domestic product. Deloitte issued the report less than a week before President Obama was sworn into office.



Pennsylvania Governor Rendell Praises Stimulus’ Health I.T. Funding
Modern Healthcare, subscription needed 2/23/09
Pennsylvania Gov. Edward Rendell lauded the federal government’s personal and financial commitment to health information technology, calling it “extraordinarily important to the country” and linking its potential to save lives and money to overall health care reform. Last year, hospital-acquired infections cost medical providers and the Keystone State itself $3.5 billion and more than 2,500 lives, Rendell said. Information technology “is going to be helpful in reducing that and helping us prevent hospital-acquired infections,” Rendell added.

Tennessee Governor Believes He Isn't a Candidate for Obama's Health Secretary
The Tennessean, 2/23/09
Tennessee Gov. Phil Bredesen said he doesn't expect to be nominated to be secretary of the Department of Health and Human Services. Bredesen said he has no meetings scheduled to talk about the job with Obama administration officials. His name began appearing on lists of possible candidates for the job after President Obama's first choice, former Senate Majority Leader Tom Daschle of South Dakota, withdrew.

New Massachusetts eHealth Subsidiary will Fund Expansion
Boston Globe, 2/19/09
The Massachusetts eHealth Collaborative, a nonprofit that has played a leading role in implementing electronic health records, is creating a for-profit subsidiary as it expands its business helping doctors and hospitals adopt the new technology. The move comes as Massachusetts prepares to implement the electronic health systems beyond a three-community pilot project, which the collaborative ran over the past few years. The new entity is already working for commercial customers including Beth Israel Deaconess Medical Center and its physician group.

Analysis: Stimulus Law Spends on Health Care Today to Save for Tomorrow
HealthLeaders News, 2/18/09
The good news for health care providers is that the $787 billion stimulus bill that President Obama signed into law yesterday includes an additional $87 billion for state Medicaid programs. Given Medicaid's dismal reimbursements, however, that's also the bad news. Medicaid supplemental funding does have one very large string attached. States can only use the supplemental money if they do not cut their Medicaid programs. The National Conference of State Legislatures reports that 43 states face budget shortfalls this year, and AARP reports that several states have considered cutting their Medicaid expenditures this year to account for budget shortfalls.

Web Site Gives Data Critiquing Oklahoma Hospitals
NewsOK, 2/17/09
The Oklahoma Hospital Association launched a Web site giving patient quality and safety information for 80 Oklahoma hospitals. The
site also will help hospitals learn best practices for improving care.

Electronic Medical Records Might Benefit Dallas I.T. Firms
Dallas Morning News, 2/17/09
Electronic medical records have been talked about for at least a decade, and now a mammoth infusion of federal cash may soon bring digital records into the mainstream. The trend represents a huge opportunity for Dallas-area tech companies that say medical care could be drastically improved. But some experts question whether the investment will pay off.



A Warning Shot in the Health Care Fight
Los Angeles Times, 2/24/09
When President Obama included money in his economic stimulus plan to help people identify the most cost-effective medical care, he set off one of the sharpest, and most unexpected, political fights of his young administration. The "comparative-effectiveness" issue was supposed to help lay the groundwork for the broader reform effort. But it became a lightning rod for conservative commentators who labeled it a step toward socialized medicine.

Recession Complicates Health Care Recruiting
South Florida Sun-Sentinel, 2/23/09
The nursing shortage across the nation is deepening, and now experts say the recession is undercutting the power of institutions to attack it. The economic downturn is drying up money which hospitals and nursing schools were spending to recruit and attract people to the profession. This means health institutions may remain understaffed longer than expected.

Teaching Old Docs New e-Health Tricks Proves Difficult: Younger Physicians Are More Likely to Gravitate to Automated Systems
Computerworld, 2/9/09
Before the rollout an all-electronic health records (EHR) system about a year ago, only about half of the doctors and nurses in West Virginia's state hospitals were familiar with medical computer systems. So when technology rolled in, staffers pushed back. EHR systems are expected to streamline health care workflow, improve the quality of care, and cut costs, according to experts. But medical facilities could also find themselves at loggerheads with some of their own staffers, which are far more familiar with pen and paper than a keyboard or tablet PC.

From the Editor: Where Angels Fear to Tread?
Health Management Technology, 2/09
Less than 48 hours ago, President-elect Obama announced his bold "new" vision for health care: Electronic health records for every American within five years. Already, I’ve received dozens of e-mail invites to attend seminars or interview executives to learn "how" he plans to achieve his lofty goals. Did I miss something? I don’t recall hearing a "plan"—just a list of priorities. At the moment, how he will perform this miracle is anyone’s guess, but that doesn’t stop the barkers from selling tickets to the show.

ICD-10: No Need to Panic — No Reason to Procrastinate
Health Management Technology, 2/09
After hovering outside the door for years, ICD-10 has suddenly appeared like an unwelcome guest and ensconced itself in your waiting room. On Jan. 15, 2009, the Department of Health and Human Services (HHS) issued a final rule setting Oct. 1, 2013, as the deadline for ICD-10 implementation. Simultaneously, it announced a final ruling to adopt the X12 standard Version 5010 for HIPAA-covered electronic transactions, which includes claims, remittance advice, and eligibility inquires and referral authorizations, along with prescriptions (Version D.0), which is due to take effect almost two years earlier on Jan. 1, 2012. By allocating a reasonable level of resources over a reasonable period of time, providers can avoid a crisis situation and increase the likelihood of a smooth transition.

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