By Natalie Slodowy, IntelliSuite Technologies

Talks about government-initiated healthcare IT incentives have been ongoing for several years now, with little implemented action yet seen. Is it possible that all this talk will finally be converted to real, measurable action? According to the recent initiation of an EHR demonstration project, the answer may be an exciting yes.

A plan outlined by The Department of Health and Human Services (HHS) last fall has been put into action and teams of federal health officials have set out across the country to kick-off a five-year demonstration project; of which the goal is to get physician practices electronically capable and viable.  The end result sought of this demonstration is to provide concrete figures in terms of the financial, social, and medical benefits of EHRs and integrated practice management systems.

As the Centers of Medicare & Medicaid Services (CMS) puts it, “The goal of this 5-year demonstration is to foster the implementation and adoption of EHRs and health information technology (HIT) more broadly as effective vehicles not only to improve the quality of care provided, but also to transform the way medicine is practiced and delivered.”

Previous Obstacles and the Move Forward

What makes this step more substantial than most of the previous talks about the need for updating healthcare IT, is the government’s jump to now offer financial incentives to initiate the transformation.  Experts agree that the free market mechanics usually involved in increased demand of new products aren’t enough to get the medical community technologically modernized.

David C. Dale, MD, FACP, president of the American College of Physicians (ACP) agrees, “This program marks a significant and positive change to the administration’s previous stance on EHRs.” He continues, “It is appropriately acknowledging that market-forces alone will not be enough for physicians to afford new office systems.”

The reluctance of physicians and practice administrators to adopt new technologies typically has been based on two factors. The first is the nature of medicine itself—there is a fear that the use of more technology leads to subsequent depersonalization of care and communication. Secondly, EHRs are simply too expensive for many smaller practices.

The hope is that the first factor will become eliminated with time as both patients and new physicians further integrate IT into their everyday lives and cease to see it as a hindrance to excellent care; an expected result of the exponential nature of technological change. And now with this demonstration project, the second factor has finally been validated by the government and is being addressed head-on.

Details of the Project

The demonstration project will involve doctors in 12 areas around the country and is expected to affect an estimated 3.6 million patients. According to information provided by CMS, the 5-year plan outline is as follows:

• First operational year:  the demonstration will provide payments to participating practices based on CCHIT-certified EHR functionalities used to manage the care of patients, with higher payment for more sophisticated HIT use
• Second operational year:  payments will be made to participating physician practices that are using CCHIT-certified EHRs and reporting clinical quality measures, again with additional payments based on EHR functionalities employed by the practice
• Years three to five:  payments to participating practices will be based on performance on the designated clinical quality measures, with an added bonus each year based on the degree to which the practice has used the EHR to change and improve the way it operates

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