Update on the current state of electronic medical records (EMR)

Dear PRI Member,

As part of our continuing effort to provide our members with valuable information about developments in malpractice insurance and the medical community more broadly, we would like to provide an update on the current state of electronic medical records (EMR).

You may know that the Federal Stimulus Package of 2009 allots $147.7 billion to improvements in U.S. healthcare, with specific provisions for Medicaid, health care insurance premiums for the unemployed under COBRA, and community health centers, just to name a few areas. What you may not be aware of is the HITECH Act part of the stimulus package that focuses on the adoption and meaningful use of health information technology.

The HITECH ACT commits $19 billion to promote the adoption and use of health information technology, specifically electronic medical records (“EMRs”). The conversion to EMRs has been discussed for years but the medical industry had been slow to embrace it. HITECH will require doctors to demonstrate "meaningful use" of a certified EMR which uses e-prescriptions, electronically exchanges information, and submits clinical quality measures. Upon adhering to these requirements doctors would be eligible to receive the financial incentives. HITECH also has financial penalties for doctors who are not using EMRs meaningfully by 2015.

Beginning in 2011, Medicare will offer physicians up to $44,000 in incentives through extra Medicare payments. These payments can total as much as $18,000 in the first year for physicians who adopt in 2011 or 2012, with at least $15,000 for physicians who adopt in 2013 and a slightly lower amount for those who do so in 2014. Physicians demonstrating meaningful use starting in 2011 could collect $44,000 over five years. Physicians that do not comply will lose 1% of their Medicare fees, then 2% in 2016, and 3% in 2017. Hospitals, too, face penalties for non-adoption as of 2015 — in their case, taking the form of cuts in their annual updates under the DRG system.

Medicaid will also offer physicians incentives up to $65,000. The law provides subsidies through the Medicaid program for eligible physicians with high volumes of Medicaid patients (30% or 20% for pediatricians). Physicians may be able to receive up to $25,000 in year-one Medicaid incentive payments; physicians will also be eligible to receive up to $10,000 annually (a total of $65,000) for four additional years to support the "meaningful use" of a “certified” EMR. Doctors must choose whether to participate in the Medicaid or Medicare bonus program — they cannot receive awards from both.

We realize for many of you the thought of converting to an electronic system and sorting through certification requirements might seem like a daunting task. PRI, partnering with PriMedx Solutions, would like to help make that transition easier. PriMedx is a New York based company designed to help physicians and their staffs understand the maze of information on EMR requirements, and to offer a variety of interoperable EMR systems and products that meet the requirements for “meaningful use.”

PRI is also working with local legislators on major initiatives designed to aid the conversion to EMR and provide incentives to ensure EMR becomes the industry standard in patient record keeping. If you have further questions or would like additional details please feel free to contact Jeff Topfer at 516-277-4130 or info@primedxsolutions.com.

We will continue to keep you updated as new EMR initiatives develop.

Sincerely,

Anthony J. Bonomo
Chief Executive Officer