THE TOP 3 REASONS FOR PARTICIPATING IN THE EHR INCENTIVE PROGRAMS

While I have been extremely critical of the Medicare and Medicaid EHR incentive programs on this blog, I continue to feel that the overall goal is worthwhile and continue with my support for these initiatives. After carefully analysis, I feel that there are three primary reasons that all healthcare providers should participate in these programs. First, electronic health records have the potential to offer significant benefits to providers for the care of their patients. Second, electronic health records will eventually become the standard for healthcare in this country and all providers will need an EHR system in order to practice. Finally, the Medicare and Medicaid EHR incentive programs offer an opportunity for providers to reduce the overall cost for an EHR system.

In regard to the first reason, it is simply the statement of a well-recognized fact. The benefits of electronic medical records for the delivery of care has been well documented over the years. These benefits include factors such as improved access to the patient record, both in locating the record and in remote access, better documentation of patient encounters and rendered services, and improved tracking and reporting of test results. Once a fully integrated and networked system is in place, these benefits should continue to increase exponentially as possibilities, such as immediate access to a new patient’s entire health history or access to previous results for comparison to current studies, become a reality. These benefits should clearly help providers provide better care for their patients.

The second reason is not well established, but I believe that it represents the direction in which healthcare is moving. I base this statement on the overall trend that the healthcare system is currently pursuing in regard to electronic health records. The Medicaid and Medicare incentive programs are part of this trend, but I believe that the “private” health insurance companies will eventually also pursue this course. I have previously discussed my rationale for this opinion in a earlier post that can be found at the following link – http://emrhelpline.wordpress.com/2010/06/02/why-do-i-need-to-buy-an-electronic-medical-records-system/.

The third, and what should be the least important, reason is that the current EHR incentive programs are an opportunity for providers to reduce some of the costs associated with the implementation of an EMR/EHR system. I feel that this should be the least important reason because providers will probably be extremely disappointed and frustrated if the incentive payment is their primary rationale for participation. The fact is that the purchase of an electronic health records system is a significant capital expenditure. As I have pointed out in many posts, the federal government’s estimate for the cost of an EHR system (as part of these programs) is $104,000 over five years. While the incentive payments are a significant amount of money, the maximized amounts will only cover 40-60% of the cost over the five years (depending on which program the provider participates in). Providers will therefore still been incurring significant financial costs for the EMR/EHR system. It would therefore make more sense for providers to consider the first two reasons as the primary motivation for obtaining an EHR system, with the third reason as a nice benefit, or perk, for pursuing the purchase while the incentive programs are in place.

I feel that these three benefits represent the best reasons for providers to participate in the CMS EHR incentive programs. They offer clear and tangible benefits that providers will be able to realize from both a practice standpoint and from a financial standpoint.

Now that I have clearly laid out my rationale for participation of the EHR incentive programs, I recognize that my critical analysis of these programs in my posts may appear to be a contradiction to my professed support. In my next post, I will take the opportunity to fully explain the motivation behind my careful analysis and criticism.