How the Legislation Impacts Healthcare IT

The over-arching goal for health IT spending is to expand health coverage to more Americans and facilitate the adoption of an electronic health record (EHR) for every American by 2014. A foundation for this reform will rest with the standardization of EHRs by 2010, according to the legislation.

The Congressional Budget Office estimates that stimulus package funding will enable approximately 90% of doctors and 70% of hospitals to adopt and “meaningfully use” certified electronic health records within the next decade. The office also estimates savings of more than $12 billion through improvements in quality of care, care coordination, and reductions in medical errors and duplicative care. The following is a breakdown of the authorized health IT spending:

• $87.9 billion for state Medicaid programs
• $39 billion to extend healthcare coverage to the unemployed
• $21 billion in COBRA subsidies
• $22.8 billion to expand and modernize health IT

Other healthcare-related spending estimates:

• Regional or State Health information Exchange Support: $300 million
• Defense Health Program: $250 million
• Indian Health Service Health IT Funds: $85 million
• Indian Health Facilities: $410 million
• Health and Human Services Facilities Renovations: $1.87 billion
• Centers for Disease Control Facilities and Laboratory Renovations: $412 million
• National Institutes of Health Research: $10 billion
• Agency for Healthcare Research and Quality: $700 million and another $400 million for clinical effectiveness studies
• Military Constructions for Service Branches: $42 million for Army, $125 million for Navy, $138 million for Air Force
• Veterans Administration Medical Facilities Improvements: $1.37 billion, $145 million for IT improvements
• National Telecommunications and Information Administration's Broadband Technology Opportunities Program: $4.7 billion
• U.S. Department of Agriculture's Distance Learning, Telemedicine, and Broadband Program: $2.5 billion
• Community Health Centers through the Health Resources and Services Administration: $1.5 billion
• Social Security Administration: $500 million
• Veterans Benefits Administration for NHI Web Content: $50  million