Doctors will be financially penalized by Medicare if a certified EHR has not been implemented by 2015

Electronic Health Records (EHRs) are now required by the federal government for both physicians and hospitals that treat government funded patients including Medicare and/or Medi-Caid. The requirement is documented in the infamous economic stimulus bill - the 2009 American Reinvestment and Recovery Act.

Physicians need to establish EHR systems which must integrate with an established health information exchange system. The EHR system must meet the “meaningful use” requirement” which will be further defined this year.

As an incentive for Medicare patients, the government will provide up to $44,000 per physician, over a five year period beginning in 2011 (see chart below). In addition, Hospitals may receive $11,000,000 over the same period. Medicare payments are increased by 10% for providers located in a "health professional shortage area."

Incentive Paid in	Meaningful Use of a Certified EHR in				Failure to Adopt or demonstrate meaningful use of Certified EHR by
	2011	2012	2013	2014	2015	2016	2017	2018
2011	$18K
2012	$12K	$18K
2013	$8K	$12K	$15K
2014	$4K	$8K	$12K	$12K
2015	$2K	$4K	$8K	$8K
2016	$0	$2K	$4K	$4K
2017	$0	$0	$0	$0
Total	$44K	$44K	$39K	$24K
HPSA	$48.4K (+10%)	$48.4K (+10%)	$42.9K (+10%)	$26.4K (+10%)	-1% Penalty	-2% Penalty	-3% Penalty	-4% Penalty

It's not surprising that this funding has created a bonanza for the HealthIT industry. Now, more than ever before, doctors need strong, courageous, effective, and knowledgeable medical staff leaders to represent their patients' needs as well as their own needs including working vigorously with their hospitals, such as helping physicians with upfront monies they will need for implementation of “certified EHRs”.

EHR implementation provides a once in a lifetime opportunity for hospitals and doctors to work together. Now, that's a concept!

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William T. Choctaw MD JD is a healthcare leadership expert. He lectures nationally on many medical legal issues for hospital medical staffs, hospital executives, and managers. He recently authored the book, “Avoiding Medical Malpractice: A Physician’s Guide to the Law.” Dr. Choctaw continues to practice general surgery in Southern California.