Optimizing the Opportunity

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Optimizing the Opportunity Achieving EHR Meaningful Use and Securing Incentive Payments Justin T. Barnes Chairman, EHR Association VP, Greenway Medical Technologies

State of Healthcare Healthcare Reform/ Transformation 21% Medicare rate cut averted for 30 days. Longer patch underway. Bipartisan bill in works with White House offering their own proposal Televised White House Healthcare Summit Video & notes available ~ http://www.whitehouse.gov Additional Investments in Health IT to ensure Proper Foundation President s FY11 Budget includes $110M for health IT policy, coordination, and research activities at HHS such as funding for community health centers, IT, drug and cancer research Beginning the Shift to Paying for Reporting & Quality Preventive medicine & wellness

Health IT Foundation Health IT is a cornerstone of the future of Healthcare Improve Quality & Care Coordination Timely access to patient health information Patient Safety IOM Report ~ up to 98,000 Americans die each year from medical errors Patient Satisfaction Reduce duplicative paperwork, increase access, education & accountability Improve Billing & Collections EHRs capture all charges, claim-scrubbing & revenue cycle management Clinical Research Participate with no workflow disruption with provider & patient revenue Reduce Waste, Fraud & Abuse $70B-$200B+ annually in fraud; $600B-$850B annually overall

Future of Healthcare & Innovation Clinical Quality measurement, quality reporting & business intelligence Process Best practices (clinical, financial & administrative) Software Usability, flexibility, customizable & intuitive Hardware Faster, more efficient technology, platforms & devices Training Enhanced, more efficient & scalable deployment models Research Clinical trials, evidence-based medicine & Pharma research

Health IT Stimulus Funds Overview Over $30B (and up to $45B) of direct adoption incentives for meaningful use of certified EHRs. Specifically, $20B in Medicare incentives and $14B in Medicaid incentives $2B for ONC, NIST & HIE Infrastructure $2.5B for distance learning, telemedicine and broadband program account loan guarantees and grants $1.5B to HRSA for grants for construction, renovation, and equipment for health centers $1.1B to AHRQ for clinical research funding $500M to Social Security Administration Conservative CBO estimates show that ARRA funding will save over $15B in government spending throughout the health sector through improved quality and care coordination, reductions in medical errors and duplicative care.

Key ARRA Milestones Sec. 3004 Adopt initial set of Standards, Implementation Specifications and Certification Criteria Meaningful Use NPRM Released ~ 1/13/2010 Standards & Certification & Process IFR Released ~ 1/13/2010 Final Rules expected in Spring 2010 Sec. 4101: Medicare Incentives for Eligible Professionals Meaningful Use year ~ 01/01/2011 Pay Out Year ~ Starting as early as Spring 2011 Sec. 4201: Medicaid Incentives for Eligible Professionals Adoption & Meaningful Use year ~ Expected as early as Summer 2010 or 1/1/2011 (All state-based) Pay Out Year ~ As early as Summer/ Fall 2010 (state-based) Section 4102/ 4201 Incentives for Hospitals Meaningful Use year ~ As early as 10/01/2010 Pay Out Year ~ As early as 01/01/2011

Medicare Eligible Professional Defined: Section 1861(r) Physician Definition Doctor of Medicine or Osteopathy Doctor of Dental Surgery or Dental medicine Doctor of Podiatric Medicine Doctor of Optometry Chiropractor * (Spine Subluxation) Up to $44k per provider

Medicare Eligible Professional Incentives for Meaningful Use of a Certified EHR Learn/ Install 2010 $18k 2011 $12k 2012 $8k 2013 $4k 2014 $2k 2015 Can be up to 5 years Medicare Penalties for No EHR 2015 1% Annual Penalty 2016+ Reductions Up to $44k per provider Stimulus Formula 75% of Allowables up to Annual Max Above

Medicaid Eligible Professional Defined: Physician Dentist Certified Nurse Mid-wife Nurse Practitioner Physician Assistant (Rural Health Clinic/ FQHC) Up to $63,750 per provider Medicaid Incentives up to $63,750 for Providers/Eligible Professionals with a 30% Medicaid patient volume or Pediatricians with at least a 20% Medicaid patient volume. Pediatricians below 30% may be reimbursed at 2/3 s ($42,075) of the total allowable incentive.

Medicaid Eligible Professional Incentives for Meaningful Use of a Certified EHR $21,250 2010* $8.5k 2011 $8.5k 2012 $8.5k 2013 $8.5k 2014 $8.5k 2015 Can be up to 6 years No Medicaid Penalties 0% 2015 Penalty 2016+ Reductions Up to $63,750 per provider Medicaid Incentives up to $63,750 for Providers/Eligible Professionals with a 30% Medicaid patient volume or Pediatricians with at least a 20% Medicaid patient volume. Pediatricians below 30% may be reimbursed at 2/3 s ($42,075) of the total allowable incentive.

Medicare Incentives for Hospitals Requirements for incentives begin in FY11 (10/1/2010) For maximum bonus, must be a meaningful user of a certified EHR in FY11, FY12 or FY13 Bonus amounts decrease beginning in FY14 with further reductions in FY15 If not a meaningful user by FY15, there are penalties Reduction in market basket increase Average Hospital Incentive expected in the $4M-$6M Range Maximum Hospital Incentive in the $11,000,000.00 Range

Interesting Factoids NO INCENTIVE PAYMENT IF FIRST ADOPTING AFTER 2014- If the first payment year for an eligible professional is after 2014 then the applicable amount specified in this year and any subsequent year shall be $0 INCREASE FOR CERTAIN ELIGIBLE PROFESSIONALS- In the case of an eligible professional who predominantly furnishes services under this part in an area that is designated by the Secretary as a health professional shortage area, the amount shall be increased by 10 percent. POSTING ON WEBSITE- The Secretary shall post on the Internet website of CMS a list of the names, business addresses, and business phone numbers of the eligible professionals who are meaningful EHR users

EHR Meaningful Use Goals Definitions Achievement

Meaningful Use Goals Improve quality, safety, efficiency and reduce health disparities Engage patients and families Improve care coordination Ensure adequate privacy and security protections for personal health information Improve population and public health

Meaningful Use Considerations Balance competing considerations of proposing a definition that best ensures reform of healthcare and improved healthcare quality Encourage widespread EHR adoption Avoid imposing excessive or unnecessary burdens on healthcare providers, while simultaneously acknowledging the short time-frame available Promote healthcare & technology innovation

25 Proposed Meaningful Use Stage 1 Objectives for Eligible Professionals CPOE for 80% of all orders Active medication allergy list Maintain per condition patient lists Submit claims to payers Encounter medication resolution D-D, D-A & D- Formulary checks Record patient demographics Report quality measures to CMS Provide patient health status on request Care summaries for referral Maintain problem list Record and chart changes in vitals Send patient reminders Provide access to patient records Data to immunization registries erx for 75% of permissible scripts Record smoking status Launch/track clinical decision support rules Provide clinical summaries per visit Surveillance data to public agencies Active medication list Capture labs as EHR data Check patient eligibility via payers Exchange data among providers Secure data protection

Clinical Quality Measure Examples Ambulatory setting report on all (3) of the core measures as applicable for their patients. Title: Preventive Care and Screening: Inquiry Regarding Tobacco Use Title: Blood pressure measurement Title: Drugs to be avoided in the elderly: a. Patients who receive at least one drug to be avoided. b. Patients who receive at least two different drugs to be avoided The second required measure set for each EP is to submit information on at least one of the sets listed in Tables 5 and 19 as Specialty groups. The specialty groups are Cardiology, Pulmonology, Endocrinology, Oncology, Proceduralist/Surgery, Primary Care Physicians, Pediatrics, Obstetrics and Gynecology, Neurology, Psychiatry, Ophthalmology, Podiatry, Radiology, Gastroenterology, and Nephrology. For Specialty, CMS expects to narrow down each proposed set to a required subset of 3 to 5 measures based on the availability of electronic measure specifications and comments received.

Clinical Quality Measure Examples Title: Diabetes Mellitus: Hemoglobin A1c Poor Control in Diabetes Mellitus Description: Percentage of patients aged 18 through 75 years with diabetes mellitus who had most recent hemoglobin A1c greater than 9.0% Title: Preventive Care and Screening: Influenza Immunization for Patients 50 Years Old Description: Percentage of patients aged 50 years and older who received an influenza immunization during the flu season (September through February) Title: Preventive Care and Screening: Screening Mammography Description: Percentage of women aged 40 through 69 years who had a mammogram to screen for breast cancer within 24 months Title: Appropriate Testing for Children with Pharyngitis Description: Percentage of children aged 2 through 18 years with a diagnosis of pharyngitis, who were prescribed an antibiotic and who received a group A streptococcus (strep) test for the episode Title: Coronary Artery Disease (CAD): Oral Antiplatelet Therapy Prescribed for Patients with CAD Description: Percentage of patients aged 18 years and older with a diagnosis of CAD who were prescribed oral antiplatelet therapy

EHR Reporting Periods For an eligible professional For the first payment year, any continuous 90-day period within that calendar year If $24k in allowables threshold is met, then EP can submit immediately after the 90-day reporting period is achieved If not, then EP submits once the $24k is achieved or on 12/31 of first payment year For the second, third and fourth payment year, the entire calendar year For a eligible hospital or a critical access hospital For the first payment year, any continuous 90-day period within that Federal fiscal year For the second, third and fourth payment year, the entire Federal fiscal year

Medicare and Medicaid EHR Incentive Programs Stage I ~ Electronic capture of health information in a coded format; tracking key clinical conditions and communicating outcomes for care coordinating; implementing clinical decision support tools to facilitate disease and medication management; and reporting outcomes for public health purposes. Stage II ~ Expands on stage I. Encourages the use of health IT to enhance computerized provider order entry; transitions in care; electronic transmission of diagnostic test results; and, research. Stage III ~ Expands on stage II. Promotes improvements to quality and safety; focuses on clinical decision support at a national level by encouraging patient access and involvement; and, improved population health data.

Achieving Meaningful Use with a Certified EHR Reference sites in your specialty and with similar size practices Be practical and seek EHRs that are currently used at POC today Accept references where >50% of care providers use EHR today Product workflow is consistent with your facility/ practice requirements Can be Meaningfully Used at the point-of-care The EHR is easily customizable & flexible to your workflow Standards & Product Certification New certification process building from current CCHIT framework and efforts. Interim Final Rule (IFR) out for public comment now. 08 CCHIT Certification + Meaningful Use criteria seems a likely level to begin from due to its interoperability criteria foundation 2011 CCHIT certification criteria is very robust and is a great direction

Achieving Meaningful Use with a Certified EHR Seek a Trusted Advisor & Partner Ensure you partner with a company that is in expert in EHR meaningful use, certification & standards Track record of being proactive in the evolution of healthcare EHR Certification, Standards Development & Interoperability NCVHS EHR Meaningful Use Hearings in April 2009 10 Panels covering a multitude of perspectives J. Barnes Testified on EHR Certification, Standards, Implementation and Quality Measures Assign a Meaningful Use Leader in your Facility The leader reviews the NPRM & IFRs Understand how it effects you

Seize the Opportunity Today Begin fostering the EHR discussion with your practice, hospital or facility Involve all staff Leadership is critical to success Understand your goals for EHR adoption Financial, quality, patient satisfaction, clinical research, community leadership, all of the above, etc Begin EHR product review process today Meaningful Use begins around January 2011 for Medicaid eligible professionals and January 1st, 2011 for Medicare eligible professionals It takes time to properly research, purchase, implement and meaningfully use an EHR so experts suggest you get your place in line now.

Partner with a Certified EHR Company Many companies that offer 2008 & 2011 CCHIT Certified EHR products are committed to success just like you! Good EHR research resources CCHIT 08 (www.cchit.org) Ask your EHR software provider if they applied for 2011 CCHIT EHR Certification or are 2011 CCHIT Certified KLAS (www.klasresearch.com) Research EMR (not PM) categories that represent your practice size (i.e. 1 doc, 2-5 doc, 6-25 doc, etc..) Integrating the Healthcare Enterprise (IHE) (www.ihe.net) MGMA Practice Solutions (www.mgma.com) EHR Association (www.himssehra.org) EHR Decisions (www.ehrdecisions.com)

Why Incentives Were Created 10,000+ practices and medical facilities with point-ofcare EHRs experiencing ~ Reduced medical errors and unnecessary tests Improved preventative care Faster delivery of medications Improved coding and better claims management Increased revenue and decreased expenses Increased patient satisfaction And many other improvements due to certified EHRs.

Capitol Hill Engagement Why it is important and attainable to be active Your Congressman & Senator s want to hear from you Educate them on the life of a care provider & small business Offer to host a site visit on one of their district days They should be able to assist with HHS relationships They may even ask you to be on a Panel or in a Hearing Please let us know if we can help connect you There are roughly 18 physicians in Congress today..there are over 300 attorney s

Current Successes Many EHR companies that offer current (or 08) CCHIT Certified EHR products have been focused on meaningful point-of-care use for years Look for the KLAS Research leaders Davies Award Recipients www.himss.org/davies ROI/ Case Studies http://www.mgma.com/pm/ www.himssehra.org/casestudies http://cchit.org/about/casestudies/index.asp

Additional Resources Greenway s Government Affairs Updates http://www.greenwaymedical.com/news/stimulus/ http://www.greenwaymedical.com/learn-more/govt-industry-affairs/ Government & HHS Stimulus Sites www.recovery.gov http://www.hhs.gov/recovery/ Link to CMS Health IT Website http://www.cms.hhs.gov/recovery/11_healthit.asp

QUESTIONS OR COMMENTS? Justin T. Barnes justinbarnes@greenwaymedical.com (678) 839-4316

Thank You Greenway Medical Technologies Corporate Headquarters 121 Greenway Boulevard Carrollton, Georgia 30117 Phone: 770-836-3100 Toll-free: 866-242-3805 Fax: 770-836-3200 www.greenwaymedical.com