HITECH Alert
January 30, 2009
Economic Stimulus Package: Funding
for the Adoption of Health Care IT
Congress has taken several significant steps toward its long-stated objective of promoting the electronic exchange of health care information to reduce medical errors, improve
quality of care and eliminate waste. On January 28, the U.S. House of Representatives
passed the Health Information Technology for Economic and Clinical Health Act (the
HITECH Act) as part of the larger economic stimulus package. The Senate Appropriations
Committee also approved the HITECH Act as part of its version of the stimulus package
and the full Senate is expected to vote on the package sometime next week. The House
and Senate bills then must be reconciled before both chambers can vote on a final version of the bill.
The stated goal of the HITECH Act is to promote the adoption of electronic health
records technology (EHR Technology) by all hospitals and physicians by 2015. In order
to achieve this goal, the HITECH Act provides for the establishment of industry standards
for integration and implementation of EHR Technology to remove technical obstacles to
its widespread adoption. The HITECH Act also includes significant financial incentives to
hospitals and other providers to adopt EHR Technology by 2015, as well as penalties for
failing to do so.
The key provisions of the HITECH Act include:
>> Direct and state block grants to help fund regional and state initiatives to promote the adoption of EHR Technology and best practices;
>> An appropriation of $2 billion to $5 billion to support regional and state initiatives to promote the adoption of EHR Technology and best practices;
>> An estimated $18 billion in Medicare and Medicaid incentive funds payable to
certain or eligible hospitals and providers that adopt EHR Technology before
2015;
>> Medicare and Medicaid reimbursement penalties for physicians and hospitals
that fail to adopt EHR Technology before 2015;
>> Improved privacy and security protections for health information as health IT
usage increases;
>> The formal establishment of the Office of the National Coordinator for Health
Information Technology;
HIT Task Force
www.drinkerbiddle.com
HITECH Alert
January 30, 2009
>> Creation of the Health Information Technology (HIT) Policy Committee and the
HIT Standards Committee; and
>> A process for industry and provider stakeholders to participate in the development of national HIT policies and standards.
The HITECH Act is expected to pass both houses of Congress as part of the final version
of the economic stimulus package by Presidents Day and be signed into law by President
Barack Obama before the end of February.
Please click on the links below for more information about the economic stimulus bill and
Heath IT from House and Senate committees.
Click here for information from the House Committee on Appropriations on the Stimulus
Bill and Health IT.
Click here for information from the House Committee on Ways and Means on the Stimulus Bill and Health IT.
Click here for information from the House Committee on Energy and Commerce on the
Stimulus Bill and Health IT.
Click here for information from the Senate Committee on Finance on the Stimulus Bill and
Health IT.
Click here for information from the Senate Appropriations Committee on the Stimulus Bill
and Health IT.
In order to keep you advised on the status of the HITECH Act and how best to realize
the opportunities it will provide, Drinker Biddle has formed the Health Care Information
Technology Task Force (the HIT Task Force). The HIT Task Force, led by partner
Jeff Ganiban in our Washington, D.C., office includes members of our Health Care,
Technology and Government Relations practices.
For more information about the HITECH Act or Drinker Biddle’s HIT Task Force, please
contact Jeff Ganiban at (202) 230-5150 or Jeffrey.Ganiban@dbr.com, or Greg Billings at
(202) 230-5104 or Greg.Billings@dbr.com.
Other Publications
Sign Up
www.drinkerbiddle.com/publications
www.drinkerbiddle.com/publications/signup
© 2009 Drinker Biddle & Reath LLP.
All rights reserved.
A Delaware limited liability partnership
Jonathan I. Epstein and Edward A. Gramigna, Jr.,
Partners in Charge of the Princeton and Florham Park,
N.J., offices, respectively.
This Drinker Biddle & Reath LLP communication
is intended to inform our clients and friends of
developments in the law and to provide information
of general interest. It is not intended to constitute
advice regarding any client’s legal problems and
should not be relied upon as such.
HIT Task Force
CALIFORNIA | DELAWARE | ILLINOIS | NEW JERSEY
NEW YORK | PENNSYLVANIA | WASHINGTON DC | WISCONSIN
2