HHS Preparing Grants To Further Spur E-Health Record Adoption

HHS is preparing to offer about $600 million in program grants aimed at helping to increase adoption of electronic health records.

The grants will be provided to non-profit organizations to establish health IT regional extension centers. According to an HHS fact sheet, the regional centers "will offer technical assistance, guidance and information on best practices to support and accelerate health care providers' efforts to become meaningful users of electronic health records."

EHRs are seen as a key component in health care reform because they are expected to help improve quality and efficiency of care and potentially reduce costs (¹ (Also see "Health IT Director Pins Broad Success On Health Care Reform" - Pink Sheet, 27 Jul, 2009.)).

Speaking to reporters during an Aug. 20 conference call, HHS Secretary Kathleen Sebelius said this is "just the first wave of resources invested in health technology aimed at really transforming our paper-driven system to an electronic system over the next several years, providing help and support for hospitals and doctors as they make this conversion."

The fact sheet reiterates a common theme in the health IT discussion that "consistent, nationwide adoption and use of secure EHRs will ultimately enhance the quality and value of health care."

The centers will support health care providers with direct, individualized and on-site technical assistance in: selecting a certified EHR product that offers the best value for providers' needs; achieving effective implementation of a certified EHR product; enhancing clinical and administrative workflows to optimally leverage an EHR system's potential to improve quality and value of care (including patient experience as well as outcomes); and observing and complying with applicable legal, regulatory, professional and ethical requirements to protect the integrity, privacy and security of patients' health information.

HHS Offering About 70 Awards

According to the funding announcement and grant application ² document, HHS is offering a total of $598 million through approximately 70 awards.

"The four-year cooperative agreements will be awarded on a rolling basis," the document states. "This will allow for those who are ready to begin assisting providers in their proposed service area to do so early, while giving others time to develop their business models."

HHS plans to offer $189 million in funding during the first cycle, with a preliminary application deadline of Sept. 8 and full applications due by Nov. 3. Preliminary applications for the second cycle, which will feature about $225 million in awards, are due Dec. 22. The final cycle will offer $184 million in awards; preliminary applications will be due June 22, 2010.

The grant document also outlines success criteria: "The ultimate measure of a regional center's effectiveness will be whether it has assisted providers in becoming meaningful users of certified EHR technology. It is expected that each regional center will provide federally supported individualized technical assistance to a minimum of 1,000 priority primary care providers in the first two years of the four-year cooperative agreement project period and that over those same two years the entire cohort of regional centers will, in the aggregate, support over 100,000 priority primary care providers to achieve successful adoption and meaningful use of certified EHRs."

Meaningful Use Remains A Work In Progress

During the call, National Coordinator for Health Information Technology Director David Blumenthal noted that the purpose of these grants is "to prepare the groundwork for the Medicare and Medicaid incentives, to make it possible for providers of care to be what the [American Recovery and Reinvestment Act] calls 'meaningful users.'"

ARRA allocates financial incentives for physician practices and hospitals that demonstrate meaningful use of EHRs. The legislation also outlines penalties for those failing to adopt (³ (Also see "Adoption Of E-Health Records Gets Stimulus Of Medicare Rewards, Penalties" - Pink Sheet, 2 Mar, 2009.)). The Office of the National Coordinator is working on recommendations for what defines "meaningful use," in addition to other areas related to health IT (⁴ (Also see "Definition Of Health IT “Meaningful Use” Could Change Depending On Setting" - Pink Sheet, 22 Jun, 2009.)).

Blumenthal said he expects CMS, which will develop the actual rule on meaningful use, to issue a notice of proposed rulemaking by the end of the year and finalize that rule by mid- to late spring.

- Gregory Twachtman ( ⁵ [email protected] )