Electronic medical records (EMRs) promise to revolutionize the medical industry by reducing healthcare costs, simplifying recordkeeping practices, increasing the ability to share information and eliminating errors. But according to a 2009 report by IVANS – a supplier of EDI and network services to the insurance industry – up to 80 percent of physicians have reported that a lack of available funds is the main obstacle to implementing EMRs in many facilities. The Obama administration has, however, publicly supported the adoption of electronic records, and here we’ve outlined how last year’s $787 billion stimulus package supports current efforts to computerize the nation’s hospitals and physician’s offices.

The stimulus package has allocated $45 billion to helping the healthcare industry adopt electronic medical records, and requires the government to determine which software systems will be most beneficial and why. This process, aptly described as determining “Meaningful Use,” is still unfolding, with the main point of discussion currently revolving around deciding upon the speed at which physician groups, hospitals and technology vendors would be required to convert to digital recordkeeping systems.

Under the terms of the stimulus package, physician practices could receive up to $44,000 over a five-year period, while hospitals could receive a maximum of $15.9 million, to install EMR systems that meet “Meaningful Use” requirements. In contrast, the government would ultimately impose penalties on providers who do not choose to convert to electronic medical records by 2015, beginning with reducing Medicaid and Medicare payments by 1 percent in that year (and growing to 3 percent in subsequent years).

Whether or not systems are adequately “Certified” under the new standards that have been set by the stimulus package is also an integral issue for physicians hoping to receive incentives to adopt EMR software. Previously, certification was outsourced to a commission founded by the Healthcare Information and Management Systems Society (HIMSS) and was largely voluntary. But despite more than three years of certification, many EMR software systems are still not set up to communicate easily with one another, which has spurred the commission to turn its focus to ensuring that the certification process serves as a way to determine who will be eligible for stimulus funds.

Although some reports claim that seven out of 10 healthcare providers think EMRs would positively affect their practices, their patients and the industry as a whole, some physicians are still left wondering where to begin. On the other hand, many others are already making investments in IT initiatives. Whichever category you (and your practice) falls into, these new technologies will alter the medical landscape of this country and affect the way healthcare professionals provide patient care in the months and years to come.