Ann & Natalie’s Compliance Corner
Welcome back to Ann & Natalie’s Compliance Corner! This month, we report on the Health Information Technology Act of 2007. Missed last month’s update on Centers for Medicare and Medicaid (CMS) National Provider Identification (NPI) contingency plan? Click here.
On May 16, 2006, Senators Debbie Stabenow (D-MI) and Olympia Snowe (R-ME) introduced the Health Information Technology Act of 2007 (the HealthTech Act), a bill intended to increase quality and lower costs of health care. The lawmakers indicated that offering grants, providing tax incentives to offset the costs of investing in new health information technology, and increasing Medicare payments to providers who use health IT in clinical decision making will reduce medical costs by improving efficiency, quality of care and patient safety.
“The result of using 19th century technology in a 21st century health care system is higher costs, increased errors and decreased quality of care,” said Stabenow in a press release issued May 16, 2006. “It’s long past time that we fully utilize technology to make health care accessible and affordable for every family and business.”
The HealthTech Act would establish a five-year, $4 billion competitive grant program to encourage providers’ use of health information technology, and the lawmakers contend that at least 20 percent of these funds would be available to rural areas or regions with a shortage of health care professionals. In addition, the legislation would accelerate depreciation of health IT software and equipment, and increase Medicare payments to providers who use health IT to improve the quality and accuracy of clinical decisions for patients with chronic conditions. The bill also contains privacy provisions, including a requirement that patients be informed if their personal health record is inappropriately disclosed.
To support their findings, the lawmakers cited the Institute of Medicine’s report, To Err is Human, which estimated that tens of thousands of Americans die each year not from their medical conditions, but from preventable medical errors. According to that report, the United States spends nearly twice as much as any other country – 31 cents of every healthcare dollar – on administrative costs.
The Senators also cited a study by the RAND Corporation which suggests that high start-up costs and the fragmented nature of our healthcare systems have prevented uniform adoption of computerized healthcare information systems. The study implies that the effective use of electronic records may result in savings as high as $81 billion a year.
“With an estimated 98,000 deaths per year resulting from medical errors caused by the continuing use of outdated technology, it has become obvious that we must bring American medicine up to speed,” said Snowe. “Although business has widely adopted new practices and tools, too often medicine remains grossly inefficient, increasing the cost of health care for everyone. Our legislation addresses the needs of hospitals, health care centers and physicians in bringing technology on line quickly to save lives, improve health care delivery, and ultimately reduce costs.”
To read Senator Stabenow’s press release, click here.
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.
