Panel releases details on $20B in health IT spending

The House Ways and Means Committee is calling for $20 billion in spending to encourage the adoption of health information technology, including payments of as much as $65,000 to physicians who can demonstrate that they are using electronic data.

The committee's chairman, Rep. Charles Rangel (D-N.Y.), released details Jan 16 of the Health IT for Economic and Clinical Health Act, which is to be included in an economic stimulus package.

The bill seeks to advance the use of health IT, including electronic health records, Rangel said in a news release.

The measure would spend $20 billion on health IT infrastructure, training, state grants and financial incentives to encourage doctors and hospitals to use health IT, the news release states. The incentives include payments of $40,000 to $65,000 to doctors who can show they are "meaningfully utilizing health IT, such as through the reporting of quality measures," the release states.

The bill would require the federal government to take a leadership role in developing technical standards by 2010 for a nationwide exchange of health data. It would put the Office of the National Coordinator for Health IT in charge of creating such an infrastructure. Furthermore, the National Institute of Standards and Technology would test health IT products under a voluntary certification process to determine if they meet the standards.

The bill would also strengthen federal privacy and security laws to protect health information from misuse, including requiring patient notification if records are accessed without authorization, allowing patients to request an audit trail of their personal health information and prohibiting the resale of health information.

The committee projected $10 billion in savings from improvements in care and reductions in medical errors and duplicative care.

“As a result of this legislation, the Congressional Budget Office estimates that approximately 90 percent of doctors and 70 percent of hospitals will be using comprehensive electronic health records within the next decade,” the release states.

On Jan. 15, the House Appropriations Committee approved legislation that included $2 billion for health IT and indicated that a total of $20 billion would be spent on health IT.


About the Author

Alice Lipowicz is a staff writer covering government 2.0, homeland security and other IT policies for Federal Computer Week.

The 2014 Federal 100

FCW is very pleased to profile the women and men who make up this year's Fed 100. 

Reader comments

Fri, Jan 23, 2009 Jack Norskog San Diego

BULL CRAP - Health Care is not effected by any of this. Their customers will show up. There a short ROI for IT projects that this would pay for. For those who are not doing this currently, it is by choice and there will be a better fiscal time for this kind of offer. Our Kids don't need to pay for this as well as everything else you short sighted visionaries have obligated them to pay for up to now.

Wed, Jan 21, 2009 Jeremy Engdahl-Johnson Seattle, WA

This HITECH Act -- and $20 billion down-payment – is a grand first act toward establishing pervasive electronic health records throughout the U.S. Salting the mine with incentives for Medicare and Medicaid patients surely gets providers using HIT and building an EHR infrastructure (along with streamlining care for seniors and uninsured.)

But, will that Medicare/Medicaid dose be enough to change the system for everyone else, most especially those in their teens, 20’s and 30’s who will benefit most from wellness, preventive care, and complete medical records over their lifetimes? How will such efforts expand beyond rural areas and selected populations? Are we ready to start creating portable records for uninsured children, or are we going to let them slip through the cracks in our imperfect information environment? The goal of comprehensive care first requires comprehensive records.

Learn more: www.healthcaretownhall.com

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above