Ann's Compliance Corner
Welcome back to Ann's Compliance Corner! Here, you'll find updates on compliance issues you want to know about. This month, we discuss the new regulations that encourage physician adoption of electronic health records (EHR) and electronic prescribing systems. Missed last month's column on Data Breach Disclosure Laws? Click here.
On August 8, 2006, the Centers for Medicare and Medicaid Services (CMS) and the Department of Health and Human Services (DHHS) Office of the Inspector General (OIG) released new regulations to encourage physicians to adopt electronic prescribing and electronic health records.
The new CMS rule creates two new exceptions to the physician self referral (Stark) law. As you may know, the Stark law prohibits physicians from referring Medicare patients for certain health services to entities with which the physician has a financial relationship (unless there is an exception). Under the law, a healthcare entity is also barred from billing for Medicare services that are part of a prohibited referral.
The OIG rule establishes two new safe harbors exempting certain arrangements from enforcement action under the Anti-Kickback statute, which prohibits certain solicitations or receipt of renumeration and the offer or payment of certain renumeration.
The new rules make it easier for physicians to receive electronic health records software and other IT services and products from designated businesses. Specifically, the new rules establish conditions under which (1) health care organizations may donate to physicians (and other qualifying entities under the safe harbor) interoperable EHR software, information technology and training services and (2) hospitals and other entities may provide physicians with hardware, software, or information and training services necessary and used solely for electronic prescribing.
When interoperable among health care providers in various settings, EHR technology offers benefits such as reducing medical errors, coordinating care and improving efficiency.
Similarly, electronic prescribing can improve patient safety by decreasing prescription errors due to physician handwriting and communication errors, automating the process of checking for drug interactions and allergies and eliminating duplicate laboratory and diagnostic tests.
"These important regulations will promote the adoption of essential health information technology while protecting the federal health care programs and beneficiaries from fraud and abuse," said HHS Inspector General Daniel Levenson.
The new rules will take effect on October 10, 2006. For more information about the new safe harbors and exceptions, see:
Disclaimer: The content of Compliance Corner is for general informational purposes only, and should not be interpreted as compliance guidance or advice. Consult your compliance advisor or attorney for compliance or legal advice on specific issues related to your practice or compliance program.
