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Overall Description of Deadline: Establishes policies and procedures required before the incentive program can begin. Additionally supplemental payments are available in 2011 and 2012. If eligible professionals and hospitals are not meaningful Electronic Health Record users by 2015 there will be a Medicare payment adjustment imposed

Statement of Need: This rule would implement provisions of the American Recovery and Reinvestment Act of 2009 (Recovery Act) that authorizes incentive payments to EPS and eligible hospitals participating in the Medicare and Medicaid programs for adopting and becoming meaningful users of certified EHR technology.

Summary of the Legal Basis: Title IV of Division B of the Recovery Act includes provisions to promote the adoption of interoperable health information technology (HIT) to promote the meaningful use of health information technology to improve the quality and value of American health care. These provisions together with Title XIII of Division A of the Recovery Act may be cited as the “Health Information Technology for Economic and Clinical Health Act” or the “HITECH Act”. CMS is charged with developing the incentive programs outlined in Division B, Title IV of the HITECH Act.

Alternatives: There are no alternatives; this is a statutory requirement.

Anticipated Costs and Benefits: Under Medicare, payment adjustments will be made starting in 2015 if EPs and eligible hospitals are not meaningful users of certified EHR technology. The benefits of the adoption of HIT are difficult to quantify. There is the potential of reduced medical costs through efficiency improvements. Additionally, HIT could help prevent medical errors and adverse drug interactions.

Risks: If this rule is not published, CMS will be unable to pay incentives for the adoption and meaningful use of EHRs.