A variety of funding assistance options now exist for doctors and hospitals that have decided to implement a new electronic medical record (EMR) software system. In fact, the federal government has allocated $34 billion in stimulus money (estimated to provide $44,000 per physician over five years) to encourage medical facilities to adopt EMRs, while some states have also introduced their own incentive programs. The goal is to eventually allow medical professionals in every state to be able to access and exchange important patient medical information on a national system, but the first step is to implement EMRs in all facilities.

States like Kentucky and Louisiana have already created statewide initiatives to encourage the adoption of EMRs in an attempt to ensure that the state’s doctors and hospitals receive their portion of the stimulus funding, which will be given to states that implement widespread adoption by 2014. In order to receive funding, state offices are required by the federal government to oversee the implementation of EMRs among organizations that are involved in sharing patient health data.

The term ‘meaningful use’ is perhaps one of the most important issues surrounding federal reimbursement for EMR adoption, so it is crucial for doctors and hospitals to determine whether or not the EMR software systems they are considering will meet the requirements set forth by the Health IT Policy Committee. As a rule of thumb, start by making sure the system is tested and certified by the Certification Commission for Healthcare Information Technology (CCHIT), which is federally supported by the stimulus law.

Medicaid and Medicare are also providing incentives for EMR adoption in the form of bonuses between $44,000 and $63,750. In addition, the American Recovery and Reinvestment Act calls for cuts in Medicaid reimbursements for doctors and hospitals that refuse to adopt an electronic medical record system. Many experts agree that these Medicaid penalties may do more to encourage EMR adoption by 2015 than many other incentives.

Regardless of the challenges that still surround the implementation of digital recordkeeping systems in medical facilities, EMRs are a necessary step to improve the quality of patient care. In addition, data will become available for study that has never been accessible before, which will allow doctors and other researchers to analyze patient information in new ways and, ultimately, will positively impact medical research and the entire future of medical care.

The massive healthcare reform bill that passed recently has many people – including those who are part of the medical community – concerned but cautiously optimistic about the long-term implications of passing such a landmark piece of social legislation. It is essential for all Americans, but particularly for medical professionals, to understand how the bill will affect health coverage and spending over the next ten years, especially with the current nationwide push to encourage more doctors and hospitals to adopt certified electronic medical record (EMR) software systems.

The projected cost of the bill over the next ten years is estimated to approach $940 million dollars, but the flip side is that it would also reduce the deficit by $143 billion dollars during the same time period, and that number is expected to jump to $1.2 trillion dollars over the subsequent ten years! In addition, the healthcare reform bill would expand coverage to include nearly 30 million Americans who are currently uninsured, mainly via state-based insurance exchanges that will be established by January 1, 2015. Although it may be too early to decide, it seems likely that EMR adoption will increase as these exchanges are established, as they will most likely require quick, easy access to pertinent patient medical information.

To pay for the new plan, the Medicare Payroll Tax will be expanded in 2012 to include unearned income, amounting to a 3.8 percent tax on investment income for families making more than $250,000 per year, or $200,000 for individuals. In addition, insurance companies will be required to pay a 40 percent excise tax on high-end insurance plans starting in 2018 and a 10 percent excise tax will be added to indoor tanning services in 2011.

Some clear benefits of the plan include improvements to Medicare prescription drug payment plans and significant discounts on medication costs for seniors, as well as coverage for children and protection for those with pre-existing conditions. Considering that Medicare and Medicaid are currently offering bonuses of up to $63,750 to help doctors and hospitals who choose to adopt Certified EMR software systems, it seems likely that the use of electronic medical records will experience additional growth thanks to the 2010 healthcare reform bill.

Patient privacy concerns are often a crucial part of the process for healthcare facilities aiming to adopt electronic medical records (EMRs). This is an important issue, as most of new software systems rely on the sharing of information to be completely effective. Fears surrounding the protection of patient privacy are often focused on the possibility of identity theft or fraud, and according to the Journal of the American Medical Association, a debate is ongoing regarding the issue of who – the patient or the clinic – actually owns the rights to electronic medical information.

When dealing with paper records, it is easier to apply the concept of ownership, but the freedom that is inherent to digital storage media makes it a much more challenging issue. As it stands, any business entity that sets out to act as an intermediary, compiling patient medical information in “bundles” to use it for marketing or research purposes, must have clear patient permission to use the information. Unfortunately, the recent push to support widespread adoption of EMRs has caused some states to pass tough new privacy laws in an attempt to protect citizens, and these laws are working to decrease the overall effectiveness of EMR software systems.

In fact, according to a recent study by the Massachusetts Institute of Technology, which appears in the Management Science Journal, hospitals have seen a decline in EMR adoption in states where privacy laws restrict their effectiveness. These states have also seen an 11 percent reduction in EMR adoption over a three-year period. Comparatively, states that have no “beefed up” privacy laws have seen a 21 percent gain in the same time period. Interestingly, a recent report by the American Association of Homes and Services for the Aging found that nursing homes are leading the healthcare industry for having the total number of EMR software systems that are currently being adopted.

The study goes on to say that, in states with strict privacy laws meant to restrict EMRs, networks of hospitals and individual medical providers are the most affected, becoming the least likely healthcare entities to adopt digital recordkeeping systems. Conversely, in states without these laws and regulations, it is common for all hospitals in a region to decide to go digital at once. The good news is that, with the support of the Federal Stimulus Package, lawmakers are actively trying to find a way to encourage the widespread adoption of EMRs, while still providing patients with the privacy and security they demand.

Certified medical software can help doctors increase profit and improve patient care. But how do you know if software is “certified”, and why does it matter?? For one thing, if medical records are going to go digital, it’s essential for state and federal governments to develop sensible, well-defined regulations.

The idea is ostensibly to encourage the adoption of electronic medical record (EMR) software systems that provide highly reliable, efficient recordkeeping, and which also protect patient safety and privacy – all the while eliminating sub-standard systems that could compromise the integrity of healthcare facilities by violating a patient’s right to privacy.

Certified EMR adoption is encouraged in part by provisions in the stimulus law that call for Medicaid penalties – that is, cuts in reimbursements for healthcare facilities that choose not to adopt a certified EMR software system. A recent report from the PricewaterhouseCoopers’ Health Research Institute predicts that these Medicaid penalties could ultimately do more to encourage physicians to adopt certified EMRs than other incentives, including cash for purchasing and implementation.

Medicare and Medicaid are also offering maximum bonuses of $44,000 and $63,750, respectively, to help individual healthcare facilities adopt certified EMRs. The Department of Health and Human Services (HHS) is responsible for choosing the criteria that will separate qualified EMR software systems from those that will not be eligible to receive incentives, and they have already announced that there will be multiple certification bodies, but each one will be required to certify EMRs using criteria specified by the HHS.

Although the development of the exact criteria is still part of an ongoing process, the Health IT Advisory Committee – a group responsible for advising the HHS – has announced that they will ‘grandfather in’ vendors that obtained certification for software systems in 2008 from the Certification Commission for Health Information Technology (CCHIT). Ultimately, it seems that physicians will be able to move ahead with confidence to implement new digital recordkeeping systems – as long as they take the time to ask the tough questions and understand all of the rules before jumping into the game.