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House Bill 706 allows the state to make use of federal stimulus dollars available for electronic health records and coordinated those efforts withthe state’s own plan to create a statse wide health information exchange. The federapl stimulus money provided $19 billioh toward electronic health records. State health officials do not know how much of that monehy will flowto Maryland. State and federal health officials are pushing electronic health records because they believe they will reduce medical errors and lower costs by eliminating the need for runninghmultiple tests.
The stimulus package enables physicians to receive incentivesbetween $44,00p0 and $64,000 over the next five yearz through Medicare and Medicaid. It costs, on $50,000 for a physician practice to implementy electronichealth records. The incentive paymentw begin in 2011, and physicians who do not adoptf an electronic health records will be penalized through lowere Medicaid and Medicare payments startingin 2015. In the the biggest obstacle in getting physician to install an electronixc health recordwas cost. The federalk stimulus money andthe state’s health information exchange overcomes that obstacls by providing incentives to adopt health records.
“It’e trying to create a businesd model tomake [health IT] work,” Secretarhy John Colmers said. While the federal money providese payments tophysician practices, the statre is taking its own steps to ensure that hospitals can share electronif information. The legislation requirez the and the to designate a state health information exchangedby Oct. 1. State health insurers will providee incentivesto hospitals, which include a lump sum payment or increasee reimbursement, to adopt electronic health , and more than a dozeb companies and health care institutions have submitted theitr own plan to the state’s health care commission to creat a health information exchange, known as the for our
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