American Recovery and Reinvestment Act of 2009

Preparing for HIT Transformation in SC

We Live in Challenging and Changing Times

March 2010

The HITECH Act The HITECH Act is contained in the American

Recovery and Reinvestment Act (ARRA) and Congress legislated HIT transformation. The programs include Standards and Certification IFR Funding for

Regional Extension Centers (CITIA-SC) State HIE Programs (SCHIEx) Community College and University Programs HIT Research Projects Beacon Communities

New privacy and security regulations Accounting for disclosures Breach notification

Summit 2 RecapMeaningful Use

ARRA Incentive HIT Funding Flow

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SC will participate in the Medicaid EHR Incentive Program

Three New RulesCMS Notice of Proposed Rule Making (NPRM) for EHR Incentive ProgramDefines the provisions for incentive payments to eligible professionals and hospitals participating in Medicare and Medicaid programs that adopt and meaningfully use certified EHRs.

Deadline for Public Comments……March 15, 2010Final Rule Released………………...Late Spring, 2010

ONC Interim Final Rule (IFR) on Standards & Certification CriteriaProposes initial set of standards, implementation specifications, and certification criteria to “enhance the interoperability, functionality, utility, and security of health IT and to support its meaningful use.”

Deadline for Public Comments…March 15, 2010Final Rule Released……………...IFR goes into effect automatically approximately February 15, 2010

ONC Rule on Certification Process Proposes the process by which EHR systems will be certified or by which accreditation/certification entities can become recognized by CMS in order to certify EHR systems.

Deadline for Public Comments…. April 9 for temporary certification; May 10 for permanent certificationFinal Rule Released…………...Summer, 2010

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GENERAL EHR INCENTIVE PROGRAM DETAILS – MEDICARE AND MEDICAID

What are the conditions to receive the incentive payments?An eligible provider and an eligible hospital shall be considered a meaningful EHR user if they meet these 3 requirements:1. Demonstrates use of certified EHR technology in a

meaningful manner;2. Demonstrates to the satisfaction of the Secretary that

certified EHR technology is connected in a manner that provides for electronic exchange of health information to improve quality of health care such as promoting care coordination, in accordance with all laws and standards applicable to the exchange of information: and

3. Using its certified EHR technology, submits information in a form and manner specified by the Secretary, to HHS on clinical quality measures and other measures specified by the Secretary

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What is a qualified EHR? A Qualified EHR is an electronic record of

health-related information on an individual that: Includes patient demographic & clinical health

information, such as medical history and problem lists

AND

Has the capacity to perform all of the following: Provide clinical decision support Support physician order entry Capture & query information relevant to health care quality Exchange electronic health information and integrate with

such information from other sources

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Incremental Approach to Meaningful Use

2011 Capture/Share Data

• Prescribing/10% of all orders through CPOEs

• Drug-drug,-allergy,-formulary checks, medication lists/reconciliations

• Lab results delivery• Patient e-copies of

their health information

• Claims and eligibility checking

• Quality and immunization reporting….

• 25 Stage 1 criteria for EPs

• 23 Stage 1 criteria for EHs

2013 Advanced care processes with decision support

• CPOE for all order types

• Evidence-based order sets

• Clinical decision support at the point of care

• Record all clinical documentation in EHR

• Health summaries for continuity of care

• Registry reporting and reporting to public health

• Population PHRs….

• Under development

2015 Improve Outcome

• Achieve minimal levels of performance on quality , safety, efficiency measures

• Implement clinical decision support for national high priority conditions

• Access comprehensive data from all available sources

• Experience of care reporting

• Medical device interoperability

• Dynamic/ad hoc quality reports

• Real-time surveillance….

• Under development

First Payment

Year

CY 2011

CY 2012 CY 2013 CY 2014 CY 2015 and later**

2011 Stage 1 Stage 1 Stage 2 Stage 2 Stage 3

2012 Stage 1 Stage 2 Stage 2 Stage 3

2013 Stage 1 Stage 2 Stage 3

2014 Stage 1 Stage 3

2015 and later*

Stage 3

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Proposed Stages of Meaningful Use Timeline

*Avoids payment adjustments only for EPs in Medicare EHR Incentive Program**Stage 3 criteria of meaningful use or a subsequent update to criteria if one is established

Who is eligible?

Medicare1. Doctor of medicine or

osteopathy2. Doctor of dental surgery

or medicine3. Doctor of podiatric

medicine4. Doctor of optometry5. Chiropractor6. Hospitals (Subsection (d)

hospitals paid under IPPS & located in US)

Medicaid*1. Physicians2. Dentist3. Certified nurse-midwives4. Nurse Practitioners5. Physician assistants

practicing in an FQHC or RHC that is so led by a physician assistant

6. Acute Care Hospitals7. Children’s Hospitals* Must meet volume requirements

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Who is not eligible?

Hospital-based physicians 90% of claims submitted with Place of

Service (POS) code indication a hospital-based status

POS 21 – Inpatient Hospital POS 22 – Outpatient Hospital (Senate jobs bill

removes this) POS 23 – Emergency Room, Hospital

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When does the program actually start?

Medicare Starts October 1, 2010 (FFY) for eligible

hospitals Payment year is defined as any fiscal year beginning

with 2011 Starts January 1, 2011 (CY) for EPs

Payment year is defined as any calendar year beginning with 2011

Medicaid Intentions are to mirror Medicare CMS must approve our Medicaid HIT Plan

before we can pay the dollars

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When do I have to be live, and for how long?

First year of demonstration: Any continuous 90-day period within the payment year in which you successfully demonstrate Meaningful Use January 1, 2011 to April 1, 2011 March 13, 2011 to June 11, 2011 September 1, 2001 to November 30, 2011 Unallowable: November 1, 2011 to January 31, 2012

because it crosses into the next year Second payment year and beyond: The EHR

reporting period will mean the entire payment year

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Do I have to use an EHR 100% of the time?

50% or more of your patient encounters during the EHR reporting period must be at one or more practices/locations equipped with a certified EHR

Allows not only for the minimal levels of down-time expected from an EHR product, but for providers to still participate who work in multiple locations with varying adoption levels

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Can I switch between the programs? May switch one time from one program to the

other If switching, you will continue in the new

program at whichever payment year you would have attained in the first program had you not switched i.e., if two years were complete in Medicaid but

you no longer met the 30% threshold of patient volume, you would be allowed to switch to the Medicare program in the third year payment of that program

Last year to switch is CY 2014

How will they track individual behavior?

Tracking will be done at the unique National Provider Identifier (NPI) level

Required information includes Name, NPI, business address and phone Taxpayer Identification Number (TIN) to which

you want the incentive payment made Choice to participate in the Medicare or

Medicaid EHR incentive program There will be a single program data

repository to track participation in both Medicare and Medicaid

How will payments be made? Payments will be a single, consolidated, annual

incentive payment Medicare will be paid via CMS Medicaid will be paid by the State Medicaid agency

Payments will be made on a rolling basis as soon as you Demonstrate of Meaningful Use for the applicable

reporting period 90 days for the 1st yr or the calendar yr for subsequent years

Reach the threshold for maximum payment Reassignment to your employer or an entity with

which you have a valid employment agreement is permitted and limited with only one entity

What does “Proving Meaningful Use” mean? Provide attestation through a secure

mechanism, such as claims-based reporting or an online portal

Must identify the certified EHR technology in use

Describe your performance on all the functional measures associated with Meaningful Use This is not the clinical quality measures you will

submit on the care delivered to patients This measure your use of the EHR

CMS expects to move to electronic reporting to some degree starting in 2012

Where do I find the MU measures?Medicare & Medicaid EHR Incentive’s Program proposed ruleReleased Dec 30, 2009

What are clinical quality measures?

Includes “measure of processes, experience, and/or outcomes of patient care, observations or treatment that relate to one or more quality aims for healthcare such as effective, safe, efficient, patient-centered, equitable, and timely care.” Draws primarily from PQRI & NQF endorsed measures NQF is starting work now on modifying existing quality

measures to meet MU requirements Quality reporting will be done by attestation in 2011 & be

electronic means in 2012 (web portal, connection to HIEs and connection to specialty registries) Reporting does not have to be limited to Medicare or

Medicaid patients Use certified EHR technology to capture data elements

and calculate the results

Where do I find the quality measures to report on?

Medicare & Medicaid EHR Incentive’s Program proposed ruleReleased Dec 30, 2009

• Preventive care and screening: Inquiry regarding tobacco use

• Blood pressure management• Drugs to be avoided by the elderly:

• Patients who receive at least one drug to be avoided

• Patients who receive at least two different drugs to be avoided

Core Quality Measures for EPs

EPs will need to select one of the following specialties

Cardiology Obstetrics and Gynecology

Pulmonology Neurology

Endocrinology Psychiatry

Oncology Ophthalmology

Proceduralist/Surgery Podiatry

Primary Care Radiology

Pediatrics Gastroenterology

Nephrology

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Specialty Quality Measures for EPs

• Hospitals are required to report summary data on 43 clinical quality measures to CMS

• Hospitals only eligible for Medicaid will report directly to the States

• For hospitals in which the measures don’t apply, they will have the option of selecting an alternative set of Medicaid clinical quality measures

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Clinical Quality Measures for Eligible Hospitals

MEDICARE INCENTIVE PROGRAM

How will my incentive be calculated? Calculated by multiplying your submitted

allowable charges to Medicare by 75%, up to the capped amount for the year Part B claims for the Fee for Service program Items in the Medicare Physician’s Fee Schedule Only the “professional” components, not the “technical” Only those furnished by the EP

A physician aiming to collect the full incentive payments of $18,000 in 2011 will need to submit allowable charges of at least $24,000

If your allowable charges are less, you’ll still be able to participate – you just won’t hit the cap

Medicare Schedule of Payments for EPs

Calendar Year

Adopt 2011

Adopt 2012

Adopt 2013Phasedown

Adopt 2014Phasedown

Adopt 2015 & Beyond

2011 $18K -- -- -- --

2012 $12 $18K -- -- --

2013 $8K $12K $15K -- --

2014 $4K $8K $12K $12K --

2015 $2K $4K $8K $8K --

2016 $0 $2K $4K $4K --

2017 $0 $0 $0 $0 --

Total $44K $44K $39K $24KLess than Stage 3 MU = Penalty

Health Shortage

Area (additional

10%)

$48,400 $48,400 $42,900 $26,400

What happens if you are not a Stage 3 Meaningful User?

Reduced payments start in 2015 for those who are not meaningful users

Medicare fee schedule adjusted yearly 1%, 2%, 3% (between 3-5% after 2017)

Medicare Incentives for Hospitals The Compensation formula is the

“Initial Amount” times “Medicare Share” times “Transition Factor”

“Initial Amount” is $2 Million plus $200 for each discharge between the

1,150th to 23,000th discharge in a 12 month period

$0 for the first 1,149 and $0 for each discharge after 23,000

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Medicare Incentives for Hospitals “Medicare Share” is a fraction:

Numerator equals: Inpatient-bed days attributed to Part A plus inpatient-bed days attributable to Part C

Denominator equals: Total number of inpatient-bed days times (a) Non-charity care charges divided by (b) Total amount of charges

Critical Access Hospitals increase the Medicare Share by 20 percentage points as long as the Medicare Share does not exceed 100%

“Transition Factor” is a point value which declines each year from 1.0 to 0

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Medicare Transition Factor for HospitalsFeder

al Fiscal Year

Adopt FY 2011

Adopt FY 2012

Adopt FY 2013

Adopt FY14Phasedown

Adopt FY15 Phasedown

Adopt FY16 & Beyond

2011 1.0 -- -- -- -- --

2012 0.75 1.0 -- -- -- --

2013 0.50 0.75 1.0 -- -- --

2014 0.25 0.50 0.75 0.75 -- --

2015 0 0.25 0.50 0.50 0.50 --

2016 0 0 0.25 0.25 0.25 --

2017 0 0 0 0 0 --Incentive payment calculation: ($2m + Discharge Amount)(Medicare Share)(Transition Factor)

What are the penalties with the Medicare Incentives? Beginning in FY 2015, if an eligible hospital is not

a stage 3 “meaningful EHR user” then the applicable Market Basket Adjustment percentage shall be reduced as illustrated below.First Payment Year

Reduction in Medicare Fee Schedule as a result of non-

compliance

FY 2011 --

FY 2012 --

FY 2013 --

FY 2014 --

FY 2015 - 33.33%

FY 2016 -66.66%

FY 2017 & forward -100%

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MEDICAID INCENTIVE PROGRAM

What are the volume requirements to participate in the Medicaid incentives?

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How do you determine if you meet the volume requirements? 30% of all your patient encounters (visits)

must be attributable to Medicaid over any continuous 90-day period within the most recent calendar year Will apply a plain meaning test Cannot count a short-term temporary Medicaid

outreach program Required to annually re-attest to patient volume

thresholds Pediatricians can qualify with 20%

Incentive is reduced by a third

How are the FQHC/RHC volume requirements defined? Must “practice predominantly” (more than 50%) in

an FQHC or RHC Must have a minimum of 30% patient volume

attributable to “needy individuals” over any continuous 90-day period within the most recent calendar year

Needy individuals: Receive medical assistance from Medicaid or CHIPRA Receive care by the provider for which they are

uncompensated Receive services furnished at no cost or reduced cost

based on a sliding scale determined by the individual’s ability to pay

Bad debt is consistent with this definition

What are the Medicaid EHR Incentives?

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Medicaid incentives are flat fees intended to cover the “net average allowable” cost of purchasing, implementing and maintaining an EHR

CMS Avg allowable cost for the purchase & implementation is $54,000CMS Avg allowable cost related to maintenance defined to be $20,610

How does the timing work under Medicaid? First year must “engage in efforts to adopt, implement

upgrade of technology” Adopt = acquired and installed Implement = trained staff, deployed tools, exchanged data Upgrade = expanded functionality or interoperability

Must demonstrate “meaningful use” of certified EHR technology in second & subsequent years of incentives

Requires clinical quality measure reporting to the state Medicaid payments span a decade (2011 – 2021)

Last year to start is 2016 There are no financial penalties associated with the

Medicaid incentives; there are financial penalties with Medicare

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What if I care for Medicaid patients from several states? If you practice in multiple states or

Medicaid patients from several states come to your office, you will be required to choose only one state from which to receive Medicaid incentive payments

You can change that state choice annually when you reattest to your ability to meet the threshold

Medicare MedicaidFeds will implement (will be an option nationally);

Voluntary for States to implement (may not be an option in every State)

Penalties begin in 2015 for providers & Hospitals that are not Meaningful Users

No Medicaid fee schedule reductions

Must be a meaningful user in Year 1 Adopt/Implement/Upgrade option for 1st participation year

Maximum incentive is $44,000 for EPs; HPSA 10% bonus

Maximum incentive is $63,750 for EPs;

No minimum # of patients & does not include mid-level providers

30% threshold; 20% for pediatricians

Does not include mid-level providers Does include mid-levels; NPs, CMW, Pas only if lead provider in a rural health clinic

Last year an EP may initiate program is 2014; Last payment in program is 2016.

Last year an EP may initiate program is 2016; Last payment in program is 2021

Only providers, subsection (d) hospitals and CAHs

5 types of EPs, 3 types of hospitals

Notable Differences Between the Medicare & Medicaid EHR Programs

Next Steps for SC Quarterly HIT Summits

April 22, 2010 at Brookland Baptist Church in Columbia Go to www.scdhhs.gov/HIT to register

SC will receive a 9.6m HIE grant to scale the South Carolina Health Information Exchange (SCHIEx) for statewide use Executive Order created interim governance committee H.4538 introduced to make governance committee permanent DHEC is a grant partner; grant administered by SCDHHS; ORS will run

SCHIEx Go to www.schiex.org for information on how to connect

HSSC submitted the Regional Extension Center grant Directs resources to individual providers to facilitate HIT adoption Contact Todd Thornburg at Thornbur@mailbox.sc.edu for help

AHEC conducts provider education campaign on HITECH act and requirements January – December 2010 Contact David Garr at garrdr@musc.edu

DHHS will publish bulletin guidance on Medicaid EHR Incentive Program CMS will publish information on Medicare EHR Incentive Program

The Challenges Ahead The program is voluntary although payment adjustments will be

imposed on Medicare providers who are unable to demonstrate meaningful use starting in 2015;

The criteria for the demonstration of meaningful use of certified EHR technology have not been finalized and will change over time;

Criteria for certified EHR technology is just now being developed

The impact of the financial incentives and payment adjustments on the rate of adoption of certified EHR technology by EPs, eligible hospitals, and CAHs, is difficult to predict; and

The ultimate impact of certified EHR technology on expenditures for medical treatments (for example, reducing errors, expedited treatment) cannot be known with certainty at this time.

Questions