Return to Previous Page

FPs Could Benefit From Health IT Final Rules

By News Staff
8/31/2006

Earlier this month, HHS Secretary Mike Leavitt announced final regulations that will support physician adoption of e-prescribing and electronic health records technology.

Both CMS and HHS' Office of Inspector General published final rules in the August 8 Federal Register that create parallel exceptions and safe harbors to two key federal fraud and abuse laws for arrangements involving the donation of certain electronic health information technology and services.

The regulations go into effect Oct. 10.

David C. Kibbe, M.D., director of the Academy's Center for Health Information Technology, or CHiT, said the rules could have a positive impact on family physicians. "Believe me, there's not an integrated delivery system or hospital in the country that isn't looking for some way to provide EHR technology and health information technology to its physician and medical staffs," said Kibbe. "These rules would almost certainly increase the amount of money that finds its way from health plans and hospital systems and integrated delivery systems who are affected by this ruling, into the hands of medical practices for the purpose of (implementing) EHR software."

According to an HHS press release the rules establish "two new safe harbors under the federal anti-kickback statute. Arrangements involving the provision of items and services that meet the requirements of the safe harbors are exempt from enforcement action under the federal anti-kickback statue related to electronic prescribing as well as electronic health records systems." The exceptions to the Stark Law and safe harbors to the anti-kickback statute establish the conditions under which

  • entities furnishing designated health services (and certain other entities under the safe harbor) may donate to physicians (and certain other recipients under the safe harbor) interoperable EHR software, information technology and training services, and
  • hospitals and certain other entities may provide physicians with hardware, software, or information technology and training services necessary and used solely for electronic prescribing.
"Electronic health records help doctors provide higher quality patient care, improved efficiency and with less hassle," said HHS Secretary Mike Leavitt in the press release. "By removing barriers, these regulation changes will help physicians get these systems in place and working for patients faster."

Kibbe highlighted the OIG's definition of interoperability as a key component of the regulations. "OIG is actually describing interoperability the way the Academy describes it," said Kibbe, adding that by definition, interoperability must involve the transfer of information between different information systems.

"Single vendor connectivity is not the same thing as interoperability," said Kibbe. For example, a hospital system that is trying to convince primary care physicians in the community to use its chosen EHR vendor "will not qualify as a safe harbor recipient unless that software is truly capable of exchanging health information with other vendors' products and services," he said.

After these final rules are implemented, family physicians can look to their hospitals and hospital systems for financial help with purchasing -- and even gifting of -- health IT software, said Kibbe, "but they should make sure that the organizations who offer them those gifts are truly offering interoperable products and services, and a choice of products and services."

Kibbe advised members who have questions about the new regulations to contact CHiT. "If members are in a situation where a hospital, integrated delivery system or health plan is offering to give them software, hardware or e-prescribing software devices under the Stark and anti-kickback safe harbor, they should seek help from the Academy so they know what questions to ask," said Kibbe.

"My fear is that they (entities wishing to donate) may misrepresent what's said in this ruling," he added.