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New incentives for doctors to use online records

Patient Access Weekly Advisor, AP/Yahoo News, October 31, 2007

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The Bush administration is recruiting about 1,200 doctors nationally to omit the paperwork from their medical practice in exchange for higher Medicare payments, the Associated Press reports.

Health and Human Services Secretary Mike Leavitt said Monday that the project is one of the biggest steps yet toward meeting President Bush's goal of nationwide use of electronic health records by 2014.

Physicians will receive higher Medicare payments when they complete tasks, such as ordering prescriptions or recording lab test results, online. Physicians who use the technology the most and score the best in an annual evaluation will receive the highest payments.

Currently, only about 10 percent of doctors in solo or small-group practices use online records. Implementing the necessary computer systems can range from $20,000 to $40,000. Many doctors perceive the benefits of online records in helping insurance companies or patients, but aren't convinced the upfront investment is worth the hassle, Leavitt said, according to the Associated Press.

When they participate, doctors could see their reimbursements increase by several thousand dollars annually when treating Medicare patients. The Associated Press reports that the administration has also asked insurance companies to consider similar rate increases for participating physicians, giving doctors greater incentive to participate.

To read the Associated Press article on Yahoo, click here.

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