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  ARRA Stimulus Update

Home > ARRA Stimulus Update

Overview

On February 27, 2009, when President Obama signed into law the $787 billion economic stimulus package, it included $19.2 billion for healthcare information technology (HIT). This stimulus package has become known as the American Recovery and Reinvestment Act (ARRA) of 2009.  Title XIII of this Act, the section dealing with health information technology, (which can be found on pages 112-165) is now known as the Health Information Technology for Economic and Clinical Health (HITECH) Act. This unprecedented, federal financial support for HIT offers enormous opportunities for the expansion of electronic health records into more physician offices and hospitals along with the linkage of these records to improve the quality and coordination of care through community and regional health information exchanges.

The HITECH Act includes:

  • $18 billion through the Medicare and Medicaid reimbursement systems for hospitals and physicians to assist them in becoming more electronic and who meet the “meaningful user” criteria.
  • $2 billion to the Office of the National Coordinator that must be spent on such functions as the development of the infrastructure necessary to permit the electronic exchange and use of health information for each individual in the United States, the updating the Department of Health & Human Services’ technologies to allow for the electronic flow of information, the inclusion of HIT  education into the training of healthcare professionals and the promotion of interoperable clinical data repositories.
  • Through its provisions this Act also promotes the use of standards, certification of software and consumer privacy.

Below you will find links to key web-sites that will keep you updated on the most recent news of the ARRA and, more specifically, HITECH.  The final section provides links to key documents that pertain to this fast-changing area of developing the nation’s electronic healthcare infrastructure.

Important Links

Web-sites that provide updates and current information include:

  • HIMSS --offers weekly updates on health information technology on their website including the latest updates on the implementation of ARRA.
  • eHealthInitiative offers a summary of the HIT provisions of this Act for eHI members on their website. Non-members can access its summary of “Navigating the ARRA” which contains very useful timeline, resources and summaries by various topics in the stimulus package. The site also contains a Directory of State HIT and HIE Leadership, which comprehensively identifies each state designated entity (SDE) and state health IT coordinator leading efforts to move forward on the HITECH Act and its programs. The new Directory, can be accessed on the eHI website.
  • iHealthBeat is a consistently good source for recent articles and commentaries on ARRA and its HIT impact. Click on the “Stimulus Watch” tab.
  • Priming the Pump is a free monthly newsletter by editorial staffs of Healthcare IT News and Healthcare Finance News. Its goal is to be valued source for information about stimulus funding under HITECH legislation and ARRA. The site includes an EHR buyer's guide, a list of CCHIT-certified EHRs and exclusive video interviews with healthcare leaders.
  • The Office of the National Coordinator (ONC) has its information on the new federal HIT website referenced above. ONC is the principal Federal entity charged with coordination of nationwide efforts related to the implementation and use of electronic health information exchange.
  • Recovery.gov is the federal government site whose mission is to educate the public about the American Recovery and Reinvestment Act, provide transparency by showing how, when, and where the money is spent, and to provide accountability by maintaining the data that will allow citizens to evaluate the Act’s progress.

State HIE Exchange Cooperative Agreement Awards Complete

In March 2010, ONC completed the announcement of State Health Information Exchange Cooperative Agreement Program awards. Fifty-six states, eligible territories, and qualified State Designated Entities (SDE) received awards.

The State HIE Cooperative Agreement Program funds states’ efforts to build capacity for exchanging health information across the health care system both within and across states. Awardees are responsible for increasing connectivity and enabling patient-centric information flow to improve the quality and efficiency of care. Key to this is the continual evolution and advancement of necessary governance, policies, technical services, business operations, and financing mechanisms for HIE over each state, territory, and SDE’s four-year performance period. This program is building on existing efforts to develop regional and state-level health information exchange while moving toward nationwide interoperability.

Click here to see the list of awardees and the amounts.

Update on Meaningful Use

On December 30, 2009, the Department of Health and Human Services CMS announced a notice of proposed rulemaking (NPRM) to implement provisions of the Recovery Act that provide incentive payments for the meaningful use of certified EHR technology. The proposed rule outlines provisions governing the EHR incentive programs, including the definition of “meaningful use” of EHR technology. The proposed rule defines the term "meaningful EHR user" as an eligible provider or eligible hospital that, during the specified reporting period, demonstrates meaningful use of certified EHR technology in a form and manner consistent with certain objectives and measures presented in the regulation. This proposed rule would phase in more robust criteria for demonstrating meaningful use in three stages. Stage 1 meaningful use criteria focuses on electronically capturing health information in a coded format, using that information to track key clinical conditions and communicating that information for care coordination purposes. It also calls for implementing clinical decision support tools to facilitate disease and medication management and reporting clinical quality measures and public health information. There are separate criteria for Hospitals and for Providers.

CMS officials intend that Stage 2 criteria be proposed by the end of 2011 and the Stage 3 criteria be proposed by the end of 2013.

On the same day ONC issued its Standards and Certification Interim Final Rule (IFR), the second of the three key rules supporting the HITECH-mandated Electronic Health Record Medicare and Medicaid Incentive Programs. This IFR specifies the adoption of an initial set of standards, implementation specifications, and certification criteria for electronic health record (EHR) technology. The IFR describes the standards that must be met by certified EHR technology to exchange healthcare information among providers and between providers and patients. This initial set of standards begins to define a common language to ensure accurate and secure health information exchange across different EHR systems. The IFR describes standard formats for clinical summaries and prescriptions, standard terms to describe clinical problems, procedures, laboratory tests, medications and allergies, and standards for the secure transportation of this information using the Internet.

Both the Meaningful Use and the Standards and Certification rules will be subject to a 60-day comment period starting on January 13, 2010.

HIMSS has issued a helpful summary of both of these rules related the the Meaningful Use provision.

Links to the CMS proposed rule and fact sheets, can be found at http://www.cms.hhs.gov/Recovery/11_HealthIT.asp The direct link to the Rule is: http://www.federalregister.gov/OFRUpload/OFRData/2009-31217_PI.pdf

ONC’s interim final rule may be viewed at http://healthit.hhs.gov/standardsandcertification along with links to FAQs or click here for the direct link to the file that appears in the Federal Register.

In early 2010 ONC intends to issue a notice of proposed rulemaking for the third key area related of the HITECH-mandated Electronic Health Record Medicare and Medicaid Incentive Programs: the certification of health information technology.
Incentive payments may begin as soon as October, 2010, to eligible hospitals. Incentive payments to other eligible providers may begin in January, 2011.

Key Current Meetings and Documents

Certain key documents have become essential reading to understand the landscape of the HIT world that is being impacted by ARRA.  Below are the current articles that we feel are essential for the current environment.  They are arranged by date with the most recent at the beginning:  

Teh Committee will meet next on June 25, 2010 from 10 a.m. - 3 p.m.

Click on the Commitee's website for the agendas of future meetings and documents form past meetings.

Potential Sources of Funds: There are at present no open funding opportunities

Closed Funding Opportunities (Pending Award) include:

Closed Funding Opportunities (Awarded)

  • SHARP Awards — $60 million in research grants that have been awarded to four institutions as part of the stimulus package's Strategic Health IT Advanced Research Projects program, Each institution will receive a $15 million grant to develop short-term and long-term solutions to key challenges facing the health IT field.

    The grants have been awarded to:

    • Harvard University for work on new health care applications and network-platform architectures;
    • Mayo Clinic of Medicine for work on promoting secondary uses of electronic health record data;
    • University of Illinois at Urbana-Champaign for work on health IT security; and
    • University of Texas Health Science Center at Houston for work on patient-centered cognitive support systems for health care provider.
  • Health Information Technology Regional Extension Centers (RECs). The REC cooperative agreements were awarded in two rounds with 32 awards announced in February, 2010, and 28 in April, 2010. The final number of RECs in the program is 60. These awards are designed to ensure primary care clinicians who need help are provided with regional support to meaningfully use electronic health records (EHRs). The RECs will provide training and support services to assist doctors and other providers in the adoption and meaningful use of EHR systems. Click here for Awardees and Amounts of Awards.

Additional Documents and Articles on Issues Related to the ARRA Stimulus Package

HITECH sets a new direction that greatly expands the role of states in fostering health information exchange and the adoption of EHRs.  This guide recommends actions states should begin to ensure successful implementation of HITECH.

The sixth annual survey of health information exchanges by eHealth Initiative provides extensive information of what is working and where it is working.  eHI documents 193 active initiatives with 57 of these being in the operational stages.  The report contains charts on what HIEs are operational, what information is being exchanged, what functionalities are being provided, and how the HIEs are being funded.  For the first time in six years, initiatives identified “addressing privacy and confidentiality issues” as the most pressing challenge they face, surpassing “developing a sustainable business model”.  At the eHI web-site users can download maps, charts and a directory of all of the reporting HIEs.  The 8/4/09 webinar presentation of this report contains many of these highlights.

ARRA includes a number of provisions related to health privacy law that go beyond those of HIPAA.  This Issue Brief by the California Health Foundation examines how the ARRA provisions impact California.

The article also makes recommendations for HHS initial interoperability certification

  • An Unprecedented Opportunity: Using Federal Stimulus Funds to Advance Health IT in California by the California Health Foundation, February, 2009. 
    Although directed specifically at the state of California, this article is an excellent summary of the HITECH Act and how it can be utilized by states.  The narrative contains:
    • charts that show the flow of dollars from the Act and the HIT Policy and Standards Process
    • a discussion of the federal privacy framework provided in the Act
    • a summary of the Medicare Incentive Payment Provisions
    • a discussion of the newly established Health Information Technology Research Center (HITRC) and the regional extension centers that are to provide communities with technical assistance and disseminate best practices
    • an overview of the Workforce Training Grants that are available
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