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CTS - ARRA (Stimulus) Overview Briefing
1. CareTech Solutions
The American
Recovery &
Reinvestment Act of
2009
Health Care
Perspective
2. What is it?
$790 billion total
Approximately $30 billion allocated
towards the improvement of healthcare
Training for HITECH
“Comparative
Chronic Community
more primary includes $19
Effectiveness”
care
Health IT Diseases Health Centers billion for
Research Renovation research
physicians and health
nurses information
technology
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Confidential – This document shall not be disclosed or used outside Customer Name and its affiliates without the consent of CareTech Solutions, Inc. – Date
3. $19 Billion Break Down
Hospital & Physician
Incentive Bonuses from
$17
Medicare/Medicaid
Billion
$19
Billion
HHS Discretionary Funds :
$2
Standards, Grants , HIE Infrastructure,
Billion
Loans to the States for EHR, Regional
HIT Resource Centers, Telemedicine,
Efficacy Studies
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Confidential – This document shall not be disclosed or used outside Customer Name and its affiliates without the consent of CareTech Solutions, Inc. – Date
4. HITECH Act: Overview
HIT
infrastructure
for
interoperability
Establish
CCHIT
Standards
Save
by 2010
Government
$12 billion
Strengthen
Privacy and
Security
Laws
Results: 90% of Doctors and 70% of Hospitals
using comprehensive EHR by 2020
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Confidential – This document shall not be disclosed or used outside Customer Name and its affiliates without the consent of CareTech Solutions, Inc. – Date
5. HITECH Act: Physician Incentives
“Meaningful” use of
• $17 billion
certified product that is
• Starting FY11.
connected and compiles • Decreasing sliding scale over time.
with submission of • Penalties for non-compliance FY15
clinical quality measures
• Choose one program
Medicare/caid
• $44 – 66 K from over 5 years if utilizing by 2011
Reimbursements: • Fee Reductions for non-EHR users
Physician EHR adoption • Penalties Start 2015 for noncompliance
benefits • Site of Service defined as not in hospital
• Up to $2 million plus discharge bonuses (estimated $10 million+
Hospitals payout per hospital)
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Confidential – This document shall not be disclosed or used outside Customer Name and its affiliates without the consent of CareTech Solutions, Inc. – Date
6. HITECH Act: HHS Discretionary Funds
• $2 billion
Secretary HHS
has 90 days to
• 90 day window started
develop spending
04.30.09
plan
• Standards requirements due by 12.31.09
• HIE Infrastructure & National Health Information Network
(NHIN)
• Regional Health IT Resource Centers
Areas of focus • Federal grants through AHRQ, HRSA, CMS
• Grants to the states in 2010 for HIT and EHR Loans
• Promote advanced EHR – disease mgmt., quality care
measures
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Confidential – This document shall not be disclosed or used outside Customer Name and its affiliates without the consent of CareTech Solutions, Inc. – Date
7. HITECH Act: Standards & Privacy
• Focused on rapidly increasing interoperability
capabilities, EHR privacy protections and
Standards regional HIE efforts
• Standards to harmonization organization and a
health IT certification organization (CCHIT)
• Define breach actions
• Impose restrictions on certain disclosures, sales, & marketing of
Privacy – Expand protected health information
• Require an accounting of disclosures to a patient upon request
HIPAA for EHR • Authorize increased civil monetary penalties for HIPAA
violations
• Grant authority to state attorneys general to enforce HIPAA
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Confidential – This document shall not be disclosed or used outside Customer Name and its affiliates without the consent of CareTech Solutions, Inc. – Date
8. Additional Funding
Prevention &
• $1 billion
Wellness
Community Health
• $1.5 billion
Centers
Primary Care
• $200 million
Provider Training
Indian Health
• $415 million ($85 million for IT)
Services
NIH Research &
• $10 billion
Facilities
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Confidential – This document shall not be disclosed or used outside Customer Name and its affiliates without the consent of CareTech Solutions, Inc. – Date
9. EHR - Big Goal!
Fact:
• There are over 800,000 clinicians in the US.
• 17% * have EHRs today.
• This leaves 664,000 who need EHRs.
• Over the next 5 years the early to mid-adopters will work hard to gain
the full stimulus incentive amounts available in 2011-2012.
• Late adopters will gain the reduced stimulus available in 2013-2014.
• Resistors will begin receiving penalties in 2015.
* The Wall Street Journal reports that only 9% of Clinicians utilize a Comprehensive EHR (03.26.09)
Source: Certification Commission for Healthcare Information Technology (CCHIT)
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10. EMR Adoption Model
It is believed that a hospital rated stage 4 or higher on the HIMSS EMR
Adoption Model will meet “Meaningful Use” criteria as defined in ARRA.
% of U.S.
% of U.S.
HIMSS Hospitals
Cumulative Capabilities Hospitals
Analytics 2007
2008 (Final)
(Final)
Medical record fully electronic;
310 of the 5,166
Stage 7 Organization able to contribute to Electronic Health 0.0% 0.3%
surveyed meet
Record (EHR) as byproduct of EMR
level 4
Physician documentation (structured templates),
requirements Stage 6 0.3% 0.5%
full CDSS (variance and compliance), full PACS
Stage 5 Closed loop medication administration 1.9% 2.5%
Stage 4 CPOE, CDSS (clinical protocols) 2.2% 2.5%
Clinical documentation (flow sheets), CDSS
Stage 3 25.1% 34.7%
(error checking), PACS available outside Radiology
Clinical Data Repository, Controlled Medical Vocabulary,
Stage 2 37.2 31.4%
Clinical Decision Support System (CDSS) Capability
Stage 1 Ancillaries - Lab, Radiology, Pharmacy 14.0% 11.5%
Stage 0 All three ancillaries not installed 19.3% 15.6%
Total Hospitals N=5,703 N=5,166
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Confidential – This document shall not be disclosed or used outside Customer Name and its affiliates without the consent of CareTech Solutions, Inc. – Date
11. Key Questions
• Incentive Payments Begin in FY 2011 (October 1, 2010), however The
Secretary needs to determine if the payment will be installments or lump
sum.
• No restrictions on how you may spend the money.
• “Hospital based” physicians are not eligible; ie Pathologists, ER
Physicians, Anesthesiologists. (Site of Service)
• “Meaningful Use” must be defined by December 31, 2009.
• CCHIT will most likely be named as the EHR system certification
committee.
Yr of Adoption 2011 2012 2013 2014 2015 2016 2017
• How does the
Payment for adopting in FY 100% 75% 50% 25%
Hospital Medicare 2011 or prior
“sliding scale” First Adoption 2012 100% 75% 50% 25%
for adoption work? First Adoption 2013 100% 75% 50% 25%
First Adoption 2014 75% 50% 50%
First Adoption 2015 50% 25%
Penalties if not adopted by 33% 66% 100%
2015. three-quarters of the
market basket update is
reduced by:
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12. Next Steps
• The time to start is now
• Update/ Create a Strategic Plan for IT Tied to Hospital
Business Drivers
• Evaluate Current Process & Procedures
• Launch/ Optimize Current Procedures to Meet EHR
Requirements
• Demonstrate “Meaningful Use” of certified EHR
product with e Prescribing capability
• Connect Physician Offices & Other Providers for
Improved Access to Patient Records
• Insure Ability to Report Technology Use to HHS
• Review Training Programs for Primary Care Providers
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Confidential – This document shall not be disclosed or used outside Customer Name and its affiliates without the consent of CareTech Solutions, Inc. – Date
Notes de l'éditeur
So what is next?These provision are being further defined as we speak. We know that framework or destination for what is required moving forward, but we don’t have an exact map. The guidance we have been given by leader in the healthcare industry has been consistent though – YOU MUST HAVE A PLAN. You need to review your current process and procedures. Are you ready for a connected healthcare world.Check with your current HIS providers and make sure they have a plan to have their products/ tools certified quickly. You need to make sure that your physicians/ staff is trained on your current technology. They need to have proficient computer skills to be able to input patient/ clinical data. The time to plan is now, once the details of the provisions/ incentives are release you must be able to move quickly to put them in place so that you can benefit.
This high-level break down shows that potential opportunity available for Healthcare. There are also other potential funds that might be secured in other areas of the bill. For example, several billions of dollars have been provisioned for infrastructure related improvements broadband expansion in rural areas. It is noted in this provision that $2.5 billion of the $7.2 billion will be authorized through the Rural Electrification Act of 1936 for Distance Learning, Telemedicine and Broadband programs. The other $4.7 billion is provisioned as grants to entities of public interest (like non-profit hospitals and foundations) that are found to be in the public interest. These grants can be used to acquire equipment and other technologies related to providing broadband service infrastructure. It is noted that entities that use this money to enhance the delivery of healthcare will receive special consideration. In these cases you need to read the fine print as well. Recipients of these loans may only secure money for one of the two provisions, not both.
There are four goals of the HITECH provision.The government through (we believe) Certification Commission for Healthcare Information Technology (CCHIT) will take the leadership position to develop and establish the standards for a nation-wide electronic exchange of health information by 2010. The intent is that is will result in improving quality and the coordination of care.This will establish the foundation for a HIT infrastructure for interoperability. The outlined government incentives in the HITECH provision are there to reward the physicians/ hospitals to install & utilize “certified” systems or products that support electronic exchange of patient’s health care information (HIT). These certified products support a standard definition of a EHR record as defined by CCHIT (we believe, but not defined at this time) and allow for interoperability, meaning that system or product has the ability to work with other systems or products without special effort on the part of the customer/ user. The government believes this will save then $12 billion by generating additional healthcare savings through quality of care and care coordination, and reductions in medical errors and duplicative care.They also believe it will also strengthen Federal privacy and security laws to protect identifiable health information from misuse as the health care sector continues to increase the use of Health IT.The desired result is that 90% of Doctors and 70% of Hospitals will be using a comprehensive EHR by 2020.
The physician/ hospital will need to show (and let me read this quote) “meaningful use” of a certified product that is connected and complies with submission of clinical quality measures.This means that the physician/ hospital will need to be using products/ tools that meet certain standards of data capture and quality. They must demonstrate the ability to share data across other entities (physicians/ hospitals) and they will need to submit data to other entities, potentially government agencies reviewing patient care data.Options may exist for home-grown tools to be “certified” by the government, but this will take time, effort and money to accomplishment.The incentives are tiered and big. Both physician and hospitals will benefit. I have attached a separate calculator that was released by the AHA so that you can calculate incentives. The calculations are fairly complicated, but the spreadsheet will make it easy to understand your drivers to gain those benefits.It must be noted that “early adopters” receive the most money. Late adopter will receive less. Non-adopters will be penalized starting in 2015.
Defining Health Information Technology (HIT) and Electronic Health Records (EHR) A “qualified electronic health record” is defined as an electronic record of health-related information on an individual. It contains patient demographics and clinical health information, such as medical history and problem lists. The system should have the capacity to provide clinical decision support and support physician order capacity. In addition, it should be able to capture and query quality information and have the capacity to exchange and integrate electronic health information fro other sources.HIT is defined as hardware, software, integrated technologies and related licenses, intellectual property, upgrades and packaged solutions sold as services that are specifically designed for use by health care entities for the electronic creation, or exchange of health information.A “Certified EHR Technology” is a qualified EHR that is certified according to a process developed by the National Institute of Standards and Technology (NIST) that is applicable to the type of record involved, such as ambulatory EHR or an inpatient hospital EHR. NIST will define the record, data capture and exchange standardsCCHIT will certify the solutions/ products to insure that they meet those standards and review quality measures.Further definition/ language has been defines for privacy and security of the data and what will happen if a breach occurs.
Other opportunities exist for funding. Prevention and Wellness – This fund provide $650 million to carry out evidence-based clinical & community prevention and wellness strategies to address chronic disease rates, and $50 million to states to implement health care acquired infection reduction strategies.CHC – There is $1.5 billion for the modernization of CHCs. This includes renovation, construction, equipment and technology improvements. There is also an additional $500 million to provide care to uninsured and underserved rural and urban populations.Training - $200 million is allocated to physician and nurse training programs. (An additional $500 million is allocated to address health professional workforce shortages. This is for scholarships, grants and training programs. Additional money is also allocated to the National Health Services Corps program.)Indian Health Services - $415 million for maintenance of current and construction of new facilities. $85 million of the provision is allocated to HIT activities.NIH Research & Facilities - $10 billion to National Institute for Health (NIH) for clinical trials, research activities, facility improvements, and renovations.
This is what is driving the market today. In order to meet ARRA defintion of “meaningful use”, but will need to achieve the capabilities listed as stage 4 in the HIMSS Analytical model. Based on the current number released, there is much work to be done