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5

"Meaningful Use" Is Meaningfully Undefined

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The stimulus bill earlier this year provided $34 billion for doctors to trade in their pen and paper for a keyboard and monitor. But the government wasn't willing to just hand out money for systems to set up electronic medical records without some accountability. Washington wants to make sure the systems it's paying for are contributing to lowering health-care costs.

A rather refreshing use of our tax dollars, don't you think?

The only problem: The bill said that the systems needed to have a meaningful use before they were eligible for stimulus funds, but the government hasn't identified what that "meaningful use" really means.

The Department of Health and Human Services (HHS) is working on that definition -- no one said the government moved quickly -- but doctors are a little worried about what they're going to need to do to get their stimulus funds. In a letter to HHS, the Medical Group Management Association (MGMA), which represents group practices, lays out the doctors' concerns. Essentially the MGMA would like to ensure that doctors will actually be able to get funds to recoup some of the costs they have to outlay for the systems.

Those billions of dollars will ultimately end up in the hands of companies such as IBM (NYSE: IBM  ) , along with much smaller companies like Quality Systems (Nasdaq: QSII  ) , Allscripts-Misys Health care Solutions (Nasdaq: MDRX  ) , Cerner (Nasdaq: CERN  ) , and athenahealth (Nasdaq: ATHN  ) . They all sell systems to establish electronic medical records in hospitals and doctors' offices. If the doctors aren't convinced that they'll get government reimbursement after they install the systems, they may be unwilling to buy in the first place. Many doctors certainly haven't been convinced up to this point that the investment was worth the payoff; otherwise they would have turned in their pad and paper long ago.

Interestingly, the MGMA also requests that HHS look into the costs of electronic medical record systems. If there isn't a low-cost option, the MGMA wants the HHS to come up with an alternative solution. I wonder whether a government-sponsored electronic medical records system would be as controversial as the public option is.

Are you a physician who's converted to an EHR? If so, please tell us about your experience in the comments section, below.

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Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. The Fool has a disclosure policy.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 24, 2009, at 4:28 PM, Bamafan68 wrote:

    To summarize a post I made on one of the MF premium boards, I am not enthusiastic about electronic medical records. They absolutely do not make patient flow/charting/prescription writing more efficient; if anything they slow the process down considerably. The one area that they currently help physicians is that they allow us to bill at a higher level of service. I don't know how many people outside of medicine know this, but despite all the Medicare billing fraud scandals, physicians are notorious about undercoding the level of service provided for office visits. A certain number of bullet points equals a level 2 visit, a higher number of bullet points equals a level 3, etc. up to level 5 visits. I suspect that with increasing utilization of electronic medical records leading to consistently higher billed level of service, insurance companies are simply going to start paying less for each level of service.

    I do think very large multispecialty groups will benefit from electronic medical records since they allow easy record sharing among other users of the SAME system. For large groups, this could cut down on test duplication, but for the average physician in a 1-7 person group, electronic record keeping likely won't reduce duplication of services.

  • Report this Comment On November 26, 2009, at 6:31 AM, zoagra wrote:

    Thanks for sharing your well-considered views regarding the deployment of these systems.

    The companies mentioned in the article have been selling into the group practice marketplace in the U.S. for several years now. They should be in a position to demonstrate the circumstances under which their systems actually provide tangible benefits to their customers and potential benefits to the larger health care delivery system.

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