American Recovery and Reinvestment Act
Summary
The American Recovery and Reinvestment Act of 2009 includes $19 billion for investments in health IT. Three quarters of respondents believe the greatest impact for health IT adoption will come either through increased Medicare/Medicaid reimbursement or through incentives for the adoption of certified health IT. However, more than 40 percent of respondents indicated that inappropriate spending of funding or lack of spending oversight could impede the optimal use of the funding in the economic stimulus package. Furthermore, nearly half of respondents indicated that the health IT provisions in the economic stimulus plan, if implemented as intended will NOT reduce healthcare costs.
American Recovery and Reinvestment Act: Area of Greatest Impact
Respondents were asked to identify which of the provisions outlined in the bill could have the most impact on furthering the adoption of health IT. Slightly more than one-third of respondents indicated that the most impact could come from an increase in Medicare/Medicaid reimbursements for providers who demonstrate use of certified health IT. Nearly as many respondents indicated that the impact would come from incentives paid to providers to adopt certified health IT.
Greatest Barrier to Optimally Using Funds in the Economic Stimulus Plan
More than 40 percent of respondents indicated that inappropriate spending of funding or lack of spending oversight could impede the optimal use of the funding in the economic stimulus package. Another third are concerned that the lack of understanding among potential buyers on how to appropriately evaluate, purchase, implement and use IT systems could be a barrier to using the money in the stimulus package optimally.
Steps Industry Needs to Take to Ensure that Money Has Greatest Impact on IT Adoption
More than half of respondents indicated that healthcare organizations need to address change management, as well as technology implementation to ensure that delivery is improved, not just automating existing processes in order to ensure that the money outlined in the economic stimulus package has the desired impact on promoting IT adoption and widespread use. Fewer than 10 percent are concerned with the need to train individuals so that skilled workers are available.
Will American Reinvestment and Recovery Act Reduce Healthcare Costs?
Nearly half of respondents indicated that the health IT provisions in the economic stimulus plan, if implemented as intended will NOT reduce healthcare costs.
Greatest Benefit of American Recovery and Reinvestment Act
The legislation requires health providers to be “meaningful users” of health IT by 2015, meaning that health IT systems in use must be certified, the provider can electronically exchange health information and that the provider can electronically submit information, such as quality measures, to the Department of Health and Human Services. Nearly half of respondents believe that the Act will have the most benefit by improving efficiency through clinical care coordination.
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