What Is Incentive Payment?

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How exactly does one convince a healthcare institution to use electronic health records? You offer them a bribe. Hospitals, private practices, and other healthcare institutions that can demonstrate that they are ready and willing to adopt electronic health record (EHR) systems are eligible to receive incentive payments. The American Recovery and Reinvestment Act of 2009, which was passed into law in the aftermath of the financial crisis, featured a clause that provided funding for the construction of electronic healthcare records on a statewide scale. Electronic health records are now widely acknowledged as one of the essential instruments that can be used to improve the quality of treatment provided, as well as the efficiency and safety of patients. EHRs have been shown to minimize medical mistakes, enhance patient satisfaction, facilitate clinical decision-making, improve provider-patient communication, improve outcomes for chronic illnesses like diabetes and hypertension, and prevent needless hospitalizations. The Center for Medicare and Medicaid Services (CMS) has estimated that widespread use of EHRs could save more than $80 billion a year by 2014 if all professionals who could use them did so. If you are a state eager to get its EHR systems up and running, you may have some doubts regarding the impact the American Recovery and Reinvestment Act (ARRA) will have on your budget. According to CMS, ARRA will offer 90% matching funding for states to plan EHR development initiatives, including IT EHR university-based training (UBT) and education. For instance, the American Recovery and Reinvestment Act (ARRA) will grant $10 million per year for the next five years to any state that wishes to build a statewide system for exchanging patient data. That's 90 percent of the total amount of money that will be required to make it happen!

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