The government is providing significant financial incentives to qualifying physicians. Specifically, the American Recovery and Reinvestment Act provides $19.2 billion dollars towards Health Information Technology (HIT) to encourage the adoption of EHR systems. 

Under the Stimulus Package, the HITECH Act outlines two types of incentive programs for Medicare and Medicaid. Providers may only submit and receive payment from one program; however, each provider can submit individual claims, maximizing reimbursements specifically within group practices.

Medicare Program
Beginning in 2011, physicians will be eligible for a maximum payout of $44,000 over the course of 5 years. An additional 10% incentive is available for physicians who practice in a “provider shortage area”.

Medicaid Program
The Medicaid program offers up to $64,000 to physicians who see more than 30% of patients paying with Medicaid, (20% for pediatricians).

Eligibility
In order to qualify for the stimulus plan, physicians must implement a certified electronic health record (EHR) system and demonstrate “meaningful use”.

Physicians that do not accept Medicare or those that do not have a payer mix of greater than 30% Medicaid (20% for pediatricians) will not qualify. Physicians who operate solely in a hospital environment, such as anesthesiologists, pathologists, and emergency physicians are not eligible.

Penalties
Providers that fail to implement a certified EHR and demonstrate meaningful use will begin to see a reduction in Medicare fee schedules, with penalties potentially reaching as high as 5%.

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