How specific is the HITECH Act?
I keep on hearing about how the HITECH act within the ARRA (full text here) is not specific enough. A lot of the definitions and formulas are in the bill. Most are extremely hard to read & understand, but they are there nonetheless.
Of course, there is intentional wiggle room in there to make sure that we don’t cripple the people who are going to administer the programs or make a regrettable decision.
In fact, where the money goes for Healthcare IT is too specific in my opinion.
I’d like to see it go to the most effective medical software and technologies rather than mainly EMRs through incentive payments.
As an investor, you typically try to spread your bets around, so that you have a better chance at getting a return for your investment. The government should be doing the same thing with Healthcare IT. However, we are throwing down the majority of our money on EMRs which is just one segment of Healthcare IT.
The part where the bill shines is requiring that the funded EMRs have e-prescribing, comply with CCHIT standards, and integrate with other systems.
There are rumors that there will be another set of funds allocated at a later date for additional healthcare projects. So, then the government will be diversifying our bets.
I’m optimistic that future Healthcare IT allocations will have more direct impact on increasing the quality of care & lowering the cost of healthcare.
