Managed Healthcare Executive - April 2009 - (Page 1) { FOR YOUR BENEFIT } EMRs not enough to get the job done in health IT Reinvestment Act includes EMR incentives but stops short of complete mission BY JULIE MILLER Safety net/ providers/ Comparative workforce effectiveness $4.7 $1.1 Wellness $1 D Julie Miller is editor-in-chief of MANAGED HEALTHCARE EXECUTIVE. She can be reached at julie.miller@ advanstar.com Wal-Mart’s chintzy trash bags are any indication of its product quality, own payments I would be cautious Health IT are fairly easy. about buying wares $19.2 It’s those onfrom them that are going, long-term meant to facilitate payments that are health. This bigMedicaid the challenge. This box brand and its COBRA $87.9 is true for homes, contracted supplier $24.7 boats, automobiles will have to win and now healthcare over physicians on reform. more than just price. Obviously, the As for the adminSource: Health Research Institute biggest healthcare down istration’s long-term PricewaterhouseCoopers LLP payment President Obama payment on healthcare, has made so far is the $150 bilHenry Waxman (D-Ca(in billions) lion included in the American lif.), the House Energy Total = $150.1 billion Recovery and Reinvestment and Commerce CommitAct. Based on reaction in the intee Chairman, believes dustry, it seems that the $19 billion health IT reform legislation will be written before investment is producing the most discussion. the August recess. Senate leaders are hoping Avalere Health predicts small physician for some action by July. practices with little capital will be worse Within the forthcoming policies, further o nancially should they take the o er IT issues must be addressed. For example, and implement an EMR system because even if EMRs were in place nationwide, the incentives and penalties outlined in the there is still the bigger problem of setting Reinvestment Act won’t o set their costs. standards for interoperability and clinical Researchers forecast a $124,000 investment integration. over ve years with incentive payments The American College of Physician only adding up to $44,000. Penalties would Executives recently asked its members be assessed starting in 2015 and amount to how they feel about technology. While $5,100 a year, which is probably less than the more of them are using EMRs (64%, up cost of system maintenance. from 33% in 2004), they still nd them Ideally, the market will drive down the di cult to use and poorly integrated. price of EMRs, and small practices will have They say physicians should be consulted a better shot at a ording them. Wal-Mart more often and be more involved in the has opportunistically announced plans technology’s design. to o er an EMR product for $25,000. If Are you listening, Wal-Mart? MHE NIH/ Research $11.5 APRIL 2009 1
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