Economic Stimulus 101

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Economic Stimulus 101

• How the
• American Recovery Reinvestment Bill
• and HiTech Act
• Can Impact Your Practice
• May 7, 2009

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Eventful Times

• Were taking the most meaningful step in years
  towards modernizing our healthcare system. Its
  an investment that will take the long overdue
  step of computerizing Americas medical records,
  to reduce the duplication and waste that costs
  billions of healthcare dollars and medical errors
  that cost thousands of lives each year. We
  have done more in 30 days to advance the cause of
  healthcare reform than this country has done in
  an entire decade.
• President Barack Obama
• February 17, 2009

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Four Health IT Provisions from the Stimulus Bill

• 1. Medicare and Medicaid incentives to encourage
  providers to use health IT in patient care.
• 2. Government-led standards that allow nationwide
  electronic exchange and use of health information
  to improve care quality and coordination between
  health care providers.
• 3. Strengthening patient privacy and security law
  to protect identifiable health information from
  misuse.
• 4. Additional funding for deployment of broadband
  infrastructure in un-served and under-served
  areas.
• NOTE Carrot Stick Financial Incentives
  Penalties

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Dollars involved

• American Recovery Reinvestment
• Bill 790 billion
• Health IT
• Training for PCPs
• Chronic disease research
• Community Health Centers
• Comparative Effectiveness Research
• Health Information Technology Clinical Health
  Act (HiTech) 19 billion

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Whats in the 19 billion

• 36 billion Physician Incentives from
  Medicare Medicaid
• 2 billion HHS Discretionary Funds
• -18.5 billion Savings from Efficiencies,
  Tax Revenues, etc.
• __________________
• 19.5 billion

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Physician Medicare Payout Calculation and
Schedule

• Date Meeting Eligibility Criteria
• 2011 2012 2013
  2014 2015
• 2011 18,000
• 2012 12,000 18,000
• 2013 8,000 12,000 15,000
• 2014 4,000 8,000 12,000 15,000
• 2015 2,000 4,000 8,000 12,000
• 2016 0 2,000 4,000 8,000
• TOTAL 44,000 44,000 39,000 35,000 0

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HiTech Act Physician Incentives

• 36 Billion in Incentives Require Proof of
  Meaningful Use
• EHR must be Certified include ERx
• Connected
• Physician must submit Quality Reports
• First Adopters will Benefit Most
• Front loaded incentives
• Penalty in 2015 for Non-EHR users
• Note Hospitals also earn Incentives

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HHS Discretionary Funds

• HHS Secretary has until May 18, 2009 to
  establish many of the standards for awarding 2
  billion in Discretionary Funds
• Secretary Kathleen Sebelius was just confirmed on
  April 28, 2009

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Understanding The Federal Incentives
44,000 over 5 yrs.
3,000 - 5,000/yr. estimate
3,000 - 5,000/yr. estimate
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ePrescribe ROI
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Requirements 50 and G Codes

• 50 of office encounters need a G Code
• Get your superbills and billing systems ready
  with the following 3 codes
• G8443 All prescriptions from the visit used an
  e-prescribe system
• G8445 No prescriptions were generated and an
  e-prescribe system was available
• G8446 Not all prescriptions were written using
  an e-prescribe system because of Federal or state
  law, the patient requested a written copy or the
  pharmacy was incapable of receiving an electronic
  prescription.

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Conclusions

• A lot of money is involved and can be available
  to our physicians
• Regulations may change
• BUT, role of technology in medical practice will
  be huge
• AND we have some great opportunities

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Here is our Plan

• 1. MPMG is helping its PCPs finance and adopt
  EHRs
• 2. Physician Partners MPMG created VIP Health
  Connect
• 3. VIP Health Connect is a new approach to
• Physician IT Adoption
• Turn-key solution to eRx
• Physician-Driven HIE
• 4. Goals
• Wide-spread physician adoption
• Invite physicians and health organizations to
  participate in VIP Health Connect
• Meaningful use sharing of health info in a
  secure environment
• Utilize benefit from these Federal funds

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VIP Health Connect