HHS Demonstration to Encourage Physicians to Adopt Electronic Health Records

On October 30, 2007, the Department of Health and Human Services (HHS) announced in a News Release that the Centers for Medicare & Medicaid Services (CMS) will conduct a 5 year demonstration project that encourages small-to-medium sized physician practices to adopt electronic health records (EHR).

According to the News Release, CMS will recruit up to 1,200 physician practices for the demonstration project.  Under the demonstration project, participating physician practices will be required to use an EHR system approved by a certification body recognized by HHS.  The system must be in place by the second year of the demonstration project and will be used to perform specific functions intended to positively affect patient care processes. As part of the demonstration project, a core incentive payment will be made to physician groups using certified EHRs to meet certain clinical quality measures, with an enhanced bonus related to the integrated of EHRs in managing patient care.   

HHS estimates that, during the demonstration project, 3.6 million consumers may be directly affected by their primary care physicians adopting certified EHRs. HHS also reports that, to amplify the effect of the demonstration project, CMS will be encouraging private insurance companies to offer similar incentives for EHR adoption.