Hospitals Forced to Shift IT Priorities to Meet Federal Requirements

Hospital officials in New York State are concerned that federal health IT requirements are set too high, forcing them to shift some IT spending priorities to meet federal deadlines, according to a report by the Business Review (Albany).

On Dec. 30, 2009, CMS proposed 25 HIT measures that would all have to be met for hospitals to qualify for federal funds and avoid eventual penalties.

Hospitals that meet targets in a four-year time line, beginning in 2011, would receive funds from a $19 billion federal pool. After 2015, Medicare payments would be reduced for those who still have not reached the measures.

Many hospitals may lack the resources to invest in IT or fail to find a certified system because only a few vendors are available, said Bill Van Slyke, spokesman for the Healthcare Association of New York State.

Even at Albany (N.Y.) Medical Center, which has a $100 million health IT budget, "it’s going to take a lot of work" to meet the deadlines, said Chief Information Officer George Hickman. Albany Med would receive $7-$8 million if it met the deadlines, he said.

John Mangona, CIO for Saratoga (N.Y.) Hospital said he is concerned about meeting all the benchmarks. "If you meet 24 of the 25, you don't get any incentive payment," he said. "The challenge is how you get to a point where you meet all the criteria."

Read the Business Review's report on health IT.