The American Recovery and Reinvestment Act made an investment in the year 2009 to encourage the adoption and implementation of the electronic health records (EHRs)(Cite). EHRs incentive payments were authorized through Medicare and Medicaid to clinicians and hospitals when they privately and securely used EHRs for achieving improvements in care delivery by the Health Information Technology for Economic and Clinical Health Act (HITECH). The healthcare organizations are expected to demonstrate meaningful use of EHRs. This rule of meaningful use has been implemented to strike a balance between acknowledging the urgency of adopting EHRs for improving the healthcare system and identifying the challenges that would be put forth…show more content… With the current healthcare environment of regulations, documenting initiatives and reimbursements, Providence Health Services should be careful of the impact of deploying the EHR and make sure they meet the requirements of meaningful use to avoid penalties.
Definition of Meaningful Use of Electronic Health Records
A significant investment to encourage the adoption of electronic health records (EHRs) by healthcare providers was made by the American Recovery and Reinvestment Act of 2009. The EHR Incentive Program, which financially rewards providers for using EHRs and meeting all CMS program requirements, was launched by CMS in the year 2011. All healthcare providers (private or public) are required to adopt and demonstrate ‘meaningful use’ of electronic health records for maintaining their existing Medicaid and Medicare reimbursement levels (Cite). A set of penalties for healthcare providers who fail to meet the deadline have already been defined by the U.S. government. Healthcare providers failing to introduce EHR systems by the year 2015 will experience a one percent reduction in Medicare reimbursements in that year, a two percent reduction in the year 2016, a three percent reduction in the year 2017, followed by a reduction of up to a 95 percent reduction in reimbursements over a period of