For those hospitals interested in applying for the Medicare EHR Incentive Payments for 2011, the last day to begin the 90-day reporting period is July 3rd. Hospitals and CAHs must demonstrate meaningful use for 90-days during the 2011 fiscal year (which ends September 30, 2011). Hospitals and CAHs have until November 30, 2011 to register and attest to meaningful use.
Health Data Privacy Protections to Increase
As we wait for the HITECH Act updates to HIPAA to be finalized, yet another article signals the administration’s intent to strengthen privacy protections for health data– http://www.nytimes.com/2011/05/31/business/31privacy.html
Impact of “Big Data” in Health Care
A Recent report from McKinsey & Company on the evolution of information technology focuses on health care as a sector to watch: “For instance, if US health care could use big data creatively and effectively to drive efficiency and quality, we estimate that the potential value from data in the sector could be more than $300 billion in value every year, two-thirds of which would be in the form of reducing national health care expenditures by about 8 percent.” Full report at http://www.mckinsey.com/mgi/publications/big_data/index.asp
Proposed Rule on Accounting of Disclosures Issued
Following much anticipation, the Office of Civil Rights released today the proposed rules on HIPAA Accounting of Disclosures implementing the new HITECH provisions. To access the proposed rules click here. The proposed rules were printed in the federal register on May 31st and comments will be accepted for sixty days thereafter.
CMS Issues Medicare EHR Incentive Checks
Beginning this week, CMS will begin issuing Medicare EHR Incentive Payments to those providers who have successfully attested to meeting meaningful use. Eligible Professionals who have met the meaningful use requirements can expect payment of $18,000. (Note, Eligible Professionals that have not yet met the $24,000 Medicare allowed charges threshold will not receive a check until that threshold is met). Eligible Hospitals that have attested to meaningful use can also begin to expect their incentive payments.
CMS will issue incentive payments in the same manner as providers receive payments for Medicare services, via electronic funds transfer or check. Payments will be made to the TIN selected during registration for the Medicare EHR Incentive Program.
For those providers who have not yet registered for the EHR Incentive Program there is still plenty of time in 2011 to do so. The Medicaid EHR Incentive Programs have launched in some states, with other expecting to launch later this Summer.
For assistance with registering for the Medicare EHR Incentive Program or understanding meaningful use please contact Elana Zana.
HHS Says Push for EHRs Overlooks Security Gaps
It seems HHS is laying the groundwork for the issuance of the updates to HIPAA privacy and security rules under the HITECH Act. As reported May 16th in the Washington Post:
“The nation’s push to computerize medical records has failed to fully address longstanding security gaps that expose patients’ most sensitive information to hackers and snoops, government investigators warn.”
$12 Million in New Grant Funding to Assist Physicians with EHRs
As reported in Healthcare IT News “The Health Resources and Service Administration has made available $12 million in grants for rural healthcare network organizations to help them become meaningful users of certified electronic health records.” According to HRSA officials “the grants may support health IT activities, such as development of a strategic plan for electronic health records (EHRs), workforce analysis, purchase of health IT equipment and installation of broadband for connectivity.” For more details see http://www.healthcareitnews.com/news/hrsa-puts-12m-rural-health-networks.
Attestation for EHR Incentive Programs Available
Earlier this month, CMS launched the attestation portion of the EHR Incentive Payment Program. Beginning on April 18th, eligible professionals and hospitals are now able to attest to meaningful use (or adopt, implement or upgrade for Medicaid). Along with the attestation itself, CMS launched its Meaningful Use Attestation Calculator, a wizard which walks eligible professionals and hospitals through the meaningful use objectives and enables the entity to determine if it can successfully meet the meaningful use standards prior to filling out the registration form.
For those providers that are able to begin the registration and attestation process, access to registration and attestation is available here. The CMS website also has a user guide that is helpful when registering as well as FAQs. To be eligible for either the Medicare or Medicaid EHR Incentive Programs an eligible professional or hospital must be using certified EHR technology. The ONC provides a list of which EHR systems are “certified.”
In addition, CMS is offering teleconferences regarding registration and attestation:
- Tuesday, May 3, 2:00 – 3:30 p.m. ET – Register to join this call if you are an eligible hospital or CAH who wants to learn more about the attestation process for the Medicare EHR Incentive Program.
- Thursday, May 5, 1:30 – 3:00 p.m. ET- Register to join this call if you are an EP who wants to learn more about the attestation process for the Medicare EHR Incentive Program.
Some states are also offering webinars about the Medicaid EHR Incentive Payment Program and how to register. Registration for the Medicaid EHR Incentive Program requires both registration with CMS and on the state level. However, eligible professionals and hospitals will not be able to register with CMS for the Medicaid EHR Incentive Program until their state is ready to start its Medicaid EHR Incentive Program. Washington expects to go-live in June 2010; California plans to go-live this Summer for eligible professionals.
If you have questions regarding the Medicare or Medicaid EHR Incentive Programs or would like some assistance with understanding meaningful use or calculating patient volume (Medicaid) please contact Elana Zana or Dave Schoolcraft.
Washington Announces Medicaid EHR Incentive Program Training Webinars
Yesterday, Washington State announced upcoming training webinars for the Medicaid EHR Incentive Programs. These webinars are designed to help hospitals and eligible professionals prepare for their participation in the Medicaid EHR Incentive Programs. Washington anticipates rolling out the Medicaid EHR Incentive Program in June.
Program Planning & Implementation Update (WSHA specific)
Wed., March 23
10-11 AM
https://www2.gotomeeting.com/register/638732130
Program Planning & Implementation Update
Wed., April 13th
10-11 AM
https://www2.gotomeeting.com/register/727138786
Qualifying For Incentives & Meeting Required Patient Volume Thresholds
Wed., April 27th
10-11 AM
https://www2.gotomeeting.com/register/212646515
Overview Of Adopting, Implementing & Upgrading EHR Systems (AIU) & Meaningful Use
Wed., May 11th
10-11 AM
https://www2.gotomeeting.com/register/183445538
Registering for the Medicaid EHR Incentive Program
Wed., May 25th
10-11 AM
https://www2.gotomeeting.com/register/332772211
Incentive Payments & Reassignment Process
Wed., June 8th
10-11 AM
https://www2.gotomeeting.com/register/518246379
Attestation & the Audit Trail
Wed., June 22nd
10-11 AM
https://www2.gotomeeting.com/register/592783331
For more information regarding the Washington Medicaid EHR Incentive Program click here.
Medicaid providers are eligible for up to $63,750 in Incentive Payments over the six years of the program. If you would like more information about determining your hospital’s or practice’s eligibility, meaningful use, or calculating your estimated incentive payments please contact Elana Zana.
Modification in Medicaid EHR Incentive Program Calculation – Net Average Allowable Cost
In December 2010, Congress passed the Medicare and Medicaid Extenders Act of 2010. Along with a variety of other changes, Congress modified one of the inputs in calculating the incentive amount under the Medicaid EHR Incentive Program, specifically the Net Average Allowable Cost calculation.
In the original enactment of the ARRA, the Medicaid EHR Incentive Payments were based on a formula which required that the Secretary of HHS determine the average allowable cost for certified EHR technology, and allow eligible professionals to collect incentive payments in an amount not to exceed 85% of the net average allowable cost, or $21,250 (in the first year or $8,500 in subsequent years) whichever amount is smaller. Determining the net average allowable cost, per the HHS Final Rule, was not an easy feat. HHS determined that the average allowable cost for certified EHR technology for the first year was $54,000 and therefore a provider was allowed to collect up to $29,000 of cash gifts towards the certified EHR technology without seeing a reduction in their EHR Incentive Payment. The Net Average Allowable Cost was calculated as follows:
1st Year Incentive = ($54,000 – cash gift for EHR) * 85% or $21,250 (whichever is smaller)
2nd-6th Year Incentive = ($20,610 – cash gift for EHR) * 85% or $8,500 (whichever is smaller)
Providers were also responsible for showing that they have contributed at least 15% of the net average allowable cost to the purchase or utilization of certified EHR technology. The Final Rule created a detailed description of what items may be included and excluded from the 15% calculation, as well as any gifts for EHR technology.
Congress has since changed these complicated calculations, making it easier on eligible professionals.
The new change recently passed by Congress relating to the incentive calculation is the assumption that the provider has expended at least 15% of the net average allowable cost provided that the EHR Incentive Payment to the provider is not in excess of the 85% of the net average allowable cost. In other words, Congress will now assume that as long as the Medicaid EHR Incentive Payment does not exceed $21,250 in the first year and $8,500 thereafter, the eligible professional is assumed to have paid the remaining 15% and is therefore eligible for the entire Medicaid EHR Incentive amount.
These changes are still subject to HHS releasing new rules interpreting Congress’s enactment and accordingly modifying the Final Rule issued this summer. However, in light of Congress’s intent it appears that the change will ease the confusion on how to compute the net average allowable cost and to determine whether a Medicaid provider has adequately paid for certified EHR technology.