Survey Measures Economic Stimulus Plan’s Effect on EHR Adoption

An online survey of 1,888 physicians, medical group executives, and staff released by Allscripts concludes that U.S. physician groups are eager to accept a proposed multi-billion dollar package of government loans, grants, and incentives designed to promote broader adoption of information technologies such as the electronic health record (EHR).

The survey results reveal consensus among medical groups that funding is critical, with 82% of respondents strongly agreeing that the government should provide funding for EHRs via the HITECH Act, a key component of the proposed $825 billion economic stimulus package now under consideration in the U.S. Congress.

The survey also confirms that existing incentive programs managed by the Centers for Medicare & Medicaid Services (CMS)—designed to encourage hospitals to donate EHRs to physicians and to spur adoption of e-prescribing—have been effective. But on several key issues that are central to the debate underway in Congress, the survey reveals a wide variance in opinions among respondents. This is especially true when it comes to deciding what form of payment the government should provide, whether funding should be targeted toward the purchase of an EHR or incentives for use of an EHR.

As a result, the survey findings clearly suggest the most effective route to achieving widespread EHR adoption lies not in a uniform approach to all physicians but rather a blended model of incentives that address the unique needs of different physicians in different types of medical groups.

The goal of the survey was to gain insight into the perspectives and preferences of healthcare professionals related to the current incentives in place and the new proposed incentives for adoption and utilization of EHRs, as well as privacy and security considerations. Key findings included the following:

• Healthcare professionals support government incentives. Eighty-two percent of respondents strongly agree that the government should provide funding for EHRs via the HITECH Act.

• Current e-prescribing incentives are working. Seventy-five percent of respondents to the survey are aware of the current e-prescribing incentives from the CMS, and 37% are actively participating in the program.

• Current EHR subsidies provided by hospitals are effective. More than 10% of practices surveyed have already received an offer from a hospital to help subsidize the cost of an EHR for their group under the Stark Safe Harbor exception. The 2008 CCHIT Incentive Index identified 50 programs nationally involving 115 hospitals that are currently providing funding for physicians. Taken together with the Allscripts survey, this data provide an indication that the current program has gained traction in the market. However the new programs under consideration have the potential to greatly more significant adoption.

• The proposed incentives may drive significant new adoption. Sixty-eight percent of respondents would be likely to participate in the pay-for-purchase proposal under consideration in the stimulus bill, which provides sliding scale financial incentives resulting in payments of up to $40,000 per provider over five years as reimbursement for the purchase of an EHR. Only 2% of respondents indicated they would not participate in this program, with the remainder either unsure (25%) or unlikely to participate (3%).

• Groups without an EHR have equal preference for either a pay-for-purchase or pay-for-use. Respondents from medical groups that do not have an EHR expressed an equal preference for either a pay-for-purchase or pay-for-use approach. Among all groups surveyed, preference for pay-for-purchase decreased in direct correlation with practice size: 47% of respondents from groups with between one and three physicians preferred to be reimbursed for purchasing an EHR rather than provided incentives for its use; 32% of those from groups with between four and 25 physicians agreed; 20% of those from groups with 26 to 100 physicians agreed; and just 18% of respondents from groups of 100 or more physicians agreed, with the larger groups strongly favoring utilization incentives.

• Providers are confident in existing privacy and security protections. Sixty-one percent of respondents from groups with an EHR say they want to move forward without waiting for new privacy standards, expressing confidence in their EHR’s existing privacy protections. The results suggest that, while privacy breach will always be a concern, experienced EHR users have faith in current protections, including HIPAA and the EHR certification process managed by the Certification Commission on Healthcare Information Technology (CCHIT).

• Existing EHR users should qualify for incentives, too. Seventy-seven percent of small-group respondents and 82% of large-group respondents (81% overall) recommend incentives from the government to retroactively cover the cost of existing EHR implementations.

• Medical groups should be able to use funding to upgrade existing EHRs. Seventy-three percent of all respondents support government funding to upgrade existing EHR implementations.

Based on these results, the survey suggests that the new federal programs
now under consideration in Congress would be best served by:

• providing up-front grants for EHR purchase as well as ongoing incentives for utilization, as groups with different characteristics appear to be motivated by different approaches;

• including retroactive funding for practices that have already adopted EHRs, as this will drive utilization of the EHR the benefits accrue to patients, providers and to the federal government;

• helping practices with older or low-functioning EHRs to upgrade to more current or fully functioning systems as many early adopters may not have the capital to meet the current standards that may be required in a pay for performance or pay for use program; and

• relying on existing privacy protections for patient information rather than waiting for new policies to be agreed upon, with the understanding that there are currently extensive security standards built into the CCHIT certification process.

Source: Allscripts

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