American Recovery and Reinvestment Act of 2009 (ARRA)

On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009, otherwise known as H.R. 1 or the ARRA. The Act aims to stimulate the economy through investments in infrastructure, unemployment benefits, transportation, education and healthcare. It includes more than $20 billion to aid the development of a robust IT infrastructure for healthcare and to assist providers and other entities in adopting and using healthcare IT.

Via the American Recovery and Reinvestment Act of 2009 (ARRA), the Federal Government is currently providing substantial incentives to physicians who purchase Electronic Medical Records (EMRs). The Government has also indicated that practices not employing EMRs will be penalized in the future.

The full text of the new law can be found at www.recovery.gov

FAQ's

Overview

The American Reinvestment and Recovery Act of 2009 allocates $2.1 billion for distribution by the Department of Health and Human Services through the Office of the National Coordinator for Health IT (ONCHIT). These funds are intended to assist healthcare providers adopt, implement, and effectively use certified EHR technology that allows for the electronic exchange of health information. Additionally, this funding will provide health information technology assistance in the areas of standards, technology, and health IT research, including regional centers designed to provide technical assistance and disseminate best practices to accelerate efforts to adopt, implement and effectively utilize healthcare information technology.

Incentive Payment Options

There are two incentive payment programs outlined under the HITECH Act - one through Medicare and another from Medicaid. Since providers can only submit for payment of an incentive bonus from one of the programs, each practice will need to analyze its public payer mix to determine where it stands to benefit most.

Both require that a provider prove "meaningful use" of an EHR product to qualify for the incentives, as well.

Learn more about meaningful use objectives and the must meet criteria,click here: