Feds Add $162 Million To EMR FundingFeds Add $162 Million To EMR Funding

On the eve of sweeping health care reform legislation which promises, if passed, to add more than 30 million individuals to the health insurance rolls, Kathleen Sebelius, Secretary of Health and Human Services, said the federal government will pump an additional $162 million to states to pay for technology to support electronic medical records.

Funded by the American Recovery and Reinvestment Act of 2009, Monday's announcement is the second installment of funds and will be divided among 16 states and qualified state designated entities (SDEs). In February, $385 million was allocated to 40 states and SDEs. The funding is part of a $2 billion effort to provide every citizen the use of an electronic medical record by 2014.

With a view to cutting costs, eliminating paperwork, and creating a non-proprietary health information exchange that enables doctors to deliver coordinated care to patients, Sebelius told reporters in a teleconference that states were desperately behind in their health IT infrastructure.

"We're in a situation where only about 20% of the doctors and only 10% of hospitals today even have basic electronic health records. That's because even though many doctors around the country can see the potential benefits, there are still lots of obstacles," Sebelius told reporters. "One of the problems is that the electronic health record systems aren't always compatible with each other. That's where these grants we are announcing today will help," Sebelius said.

According to Dr. David Blumenthal, national coordinator for health information technology, the funds are part of building a robust federal/state partnership to promote a health information exchange within every state's jurisdiction and across states.

"The purpose of these [funds] is to give the states the resources they need to bring to the table all the relevant groups within their jurisdictions -- physicians, health insurers, employers, hospitals -- all the relevant stakeholders in the state to come to an agreement on a strategic and operational plan for creating a health information exchange across their jurisdiction," Blumenthal said.

Blumenthal also noted that while HHS will be giving states guidance and technical assistance, state medical officials will have to take a leadership role in developing the health information exchange because they are closer to the technology challenges at health care facilities than officials at the federal level.

"They have a major stake in this as providers of Medicaid funds, as superintendents of state public health data and state public health activities," Blumenthal said. "They also license physicians and hospitals and therefore are in the best position to identify and credential physicians and hospitals that should be receiving and sending private and secure health information transmissions," Blumenthal added.

The following states and SDEs are to receive funds toward the establishment of the health information exchange:

For Further Reading:
Guerra On Healthcare: Stimulus Funds For All EMR Systems
E-Medical Records: 10 Steps To Take Now
Meaningful Use Programs Spiking HIT Spending