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Healthcare Financial News - Despite Potential to Help Physicians Purchase EMRs, Hospitals Remain Cautious, Says Study

Healthcare Financial News


Monday, September 22, 2008
Despite Potential to Help Physicians Purchase EMRs, Hospitals Remain Cautious, Says Study

Despite regulatory changes allowing hospitals to help physicians purchase electronic medical records (EMRs), hospitals are proceeding cautiously, according to a study released Sept. 18 by the Center for Studying Health System Change (HSC).

Under August 2006 exceptions to the federal physician self-referral and anti-kickback laws--both intended to prevent hospitals from offering financial incentives to physicians in return for patient referrals--hospitals can subsidize up to 85 percent of the upfront and ongoing costs of EMR software and related IT support services for physicians. Physicians must pay the full cost of any hardware, and the exceptions are scheduled to sunset on Dec. 31, 2013, when physicians must assume any ongoing EMR costs.

Although a few hospitals in the study had begun small-scale, phased rollouts of subsidized EMRs, the burden of other ongoing hospital IT projects, budget limitations, and lack of physician interest were among the factors impeding hospital action, according to the study. The study’s findings are detailed in a new HSC issue brief, Despite Regulatory Changes, Hospitals Cautious in Helping Physicians Purchase Electronic Medical Records. Read the issue brief.

posted on 9/22/2008 7:27:45 AM (CST)  Permalink