EMR/EHR Incentives Summary

Electronic medical records are fast replacing traditional paper records in medical practices around the globe. And with the U.S. EHR program set to begin in January 2011, it’s expected that many more physicians in the U.S. are on their way to a paperless office.  Beginning January 1^st, 2011, the United States Government (via the American Recovery and Reinvestment Act) is offering massive incentives to physicians and medical facilities making the switch from traditional paper records to more efficient EMR software. Here are a few of the highlights included in the ARRA.

1. Up to $44,000 in stimulus money from Medicare. This money can be collected over a 5 year period, with $18,000 being available the first year to physicians who meet meaningful use standards.  $44,000 is available for each physician, it is not per practice money.

2. Up to $63,750 in funds from Medicaid. These funds can be collected over a 6 year period with $21,250 available the first year to physicians who are working toward installing an EMR system. This funding is also available for each physician.

3. Avoiding penalties. Penalties will be issued starting in 2015 for Medicare physicians who have not adopted EMR software by that time and are not meaningful users. Starting in 2015 the Medicare fee schedule will be reduce by 1%, with 2% and 3% reductions to follow in 2016 and 2017 respectively.

Thanks to the ARRA, there’s never been a better time for doctors to make the switch from paper records to EHR software.