Public Policy Impacting the HIT Channel

Healthcare IT (HIT) ostensibly is moving from a vertical market to a business segment of its own. As medical practices of all sizes strive to automate their processes, digitize their records and streamline their overall operations, solution providers have a tremendous opportunity that can transform their business as well. This is not simply a “flash in the pan” occurrence, but a market changing transformation if solution providers follow the right steps. 

We're developing a series of educational programs to assist in the transformation, including newly released content on the HIT market opportunity in the Member Resource Center. You'll also see significant content devoted to the HIT opportunity during Breakaway 2010 in San Antonio.

So just where did this surge in the HIT marketplace come from? Besides the inherent need for technology upgrades in many medical practices, much of the action is being driven by ARRA (American Recovery & Reinvestment Act) incentives of as high as $44,000 (over five years) for physician practices and $16 million for hospitals (over four years). 

These funding incentives for technology upgrades are tied to the utilization of electronic health record systems and include provisions for proving “meaningful use” of such systems. The expectation is that the adoption of electronic records will streamline Medicare processing in the future and result in reduced processing costs. In addition, EHR implementation addresses many issues relative to data privacy, ensuring that confidential patient records are not inadvertently breached or shared.

Those medical practices that choose not to implement EHR systems will see Medicare reimbursement penalties of as much as three percent of their billing charges, beginning in 2016. The funding incentive, as well as the prevention of penalties, certainly makes the investment in technology upgrades currently a worthwhile proposition for medical practices...and illustrates why EHR is such a tremendous business opportunity for solution providers! 

For expert guidance, tools, templates and other resources to better understand and act on this market opportunity, engage in our HIT Community.