To EHR or Not to EHR? That’s the $39,000 Question

Posted by Donna Craig in Aug, 2013

If you’re on the fence about adopting an Electronic Health Record (“EHR”) system in your practice, you may want to make a decision soon if you want to take advantage of substantial government incentives.

According to Medicare Incentive Program guidelines, Eligible Professionals or “EPs” – physicians, dentists, podiatrists, optometrists, and chiropractors – who meet legal requirements and demonstrate meaningful use of certified electronic health record technology for at least three months in 2013 may receive a cumulative payment of $39,000 for each EP in a practice between 2013 and 2016. Under the Medicaid Incentive Program, EPs – in this case, physicians, dentists, nurse practitioners, certified nurse-midwives, and certain physician assistants – the payments are even greater.

EPs need to choose between the two programs, and it’s important to know the differences.

Under the Medicare plan, EPs that do not demonstrate meaningful use until 2014 will only see a $24,000 cumulative incentive payment, and failure to demonstrate meaningful use by the end of 2015 will trigger a payment adjustments to their 1% Medicare reimbursement at 1% penalty per year up to a maximum 5% annual adjustment. By contrast, the Medicaid program has no penalties for not achieving meaningful use and offers larger incentive payments.

Sound confusing? To help you choose an EHR vendor and get your fair share of the incentives, here’s a quick checklist:

Medical Practice Considerations: Understand Your Goals for the EHR System

Make a list of the “must haves” and desirable features
Get input from everyone in the practice, including physicians, nurse practitioners, physician assistants, and administrative staff about what they want to achieve
Identify people’s commonalities and differences when making record entries
Prioritize the group needs and individual habits to obtain buy-in and facilitate an easier transition
Determine the kinds of information and documentation (i.e., lab results, imaging records) you want the EHR system to store and retrieve
Identify the person who will interface with the EHR vendor, preferably someone who is knowledgeable about IT interfaces, has authority to make decisions, and is capable of explaining the pros and cons of the EHR system to the other EPs in the practice.

Understand The Government’s Requirements