Incentives With Healthcare Information Technology Software

The Health Care Industry is focusing on ways toElectronic Medical Records, and in future years
provide better service to patients and cut costpenalties will be given to those that do not
for all entities involved. One of the major pushesparticipate.
for improving the quality and cost of health careExamples of incentives are through the Medicare
has been the movement toward better Health IT.Improvements for Patients and Providers Act
Health IT is defined as "providing the umbrella(MIPPA), the Health Information Technology for
framework to describe the comprehensiveEconomics and Clinical Health Act (HITECH)
management of health information and its secureprovisions in the American Recovery and
exchange between consumers, providers,Reinvestment Act (ARRA). They both offer a
government and quality entities, and insurers." Thebonus for those that participate in the electronic
advances in Health Care Information Technologymedical record and/or the e-prescribing programs.
Software aim to improve health care quality,MIPPA has designed a year by year percent
prevent medical errors, reduce cost, decreasebonus for ePrescribing participants and a year by
paperwork, and more.year penalty for non ePrescribing participants.
The Health Care Industry has made significantStarting in 2009, they rewarded 2% and took no
strides in their technology with the developmentpenalty. This year (2010) they will also reward 2%
of electronic prescribing and electronic medicaland take no penalty. In 2011, MIPPA will reward
records (EMR). Electronic Prescribing is the ability1% with still no penalty. In 2012 the penalty
to send error-free, accurate, and understandablebegins. They will still reward 1% to participants but
prescriptions electronically from the provider towill also begin penalizing non participants at 1%. In
the pharmacy. EMR is a computerized history of2013 the rates move to 0.5% reward and 1.5%
patient health information. EMR's are housed onpenalty. Beyond 2013, those participating in
health information systems that allow storage,electronic prescribing programs will not receive an
retrieval and manipulation of records by healthincentive but if you choose not to participate you
care providers. These electronic capabilities havewill be hit with a 2% penalty.
proved to assist in the goals of improving healthThe ARRA HITECH incentives deal more with
care quality by decreasing medical errors andEMR's or EHR's (Electronic Health Records) but
reducing costs.also include eprescribing. President Obama signed
Health Insurance providers are expected to seethis act into law in February 2009. Medical
major benefits from the ePrescribing and EMRprofessionals who provide Medicare and Medicaid
programs. For instance, Medicare could "save upServices as well as EMR's are eligible to receive as
to $156 million over the five-year course of themuch as $44,000 in incentives.
program due to avoided adverse drug events."MIPPA and ARRA HITECH are just two examples
Another area to benefit is doctors. Studies haveof the many incentive programs that the
proved that doctors using ePrescribing softwaregovernment has approved. Health care providers
"save about $0.70 per patient per month, whichthat do not participate in electronic prescribing and
translates to $845,000 annually for each 100,000electronic health records miss out on these as well
insured patients filling prescriptions.as the ROI and cost savings. And, this is just the
If the direct cost-saving benefits do not enticebeginning. The U.S Department of Health and
health care providers enough, they also receiveHuman Services is continuing to put efforts
savings through many of the health acts andtoward Healthcare Information Technology
services currently in place. Incentives are given toSoftware and developments. It is the wave of
those that participate in ePrescribing software andthe future- the sooner you jump on the better.