Significant increases in the use of electronic health records (EHRs) among the nation’s physicians and hospitals are detailed in two new studies published today by the HHS Office of the National Coordinator for Health Information Technology (ONC).
The studies, published in the journal Health Affairs, found that in 2013, almost eight in 10 (78 percent) office-based physicians reported they adopted some type of EHR system. About half of all physicians (48 percent) had an EHR system with advanced functionalities in 2013, a doubling of the adoption rate in 2009.
About six in 10 (59 percent) hospitals had adopted an EHR system with certain advanced functionalities in 2013, quadruple the percentage for 2010. Unlike the physician study, the hospital study does not have an equivalent, established measure of adoption of some type of EHR system; it only reports on adoption of EHRs with advanced functionalities.
“Patients are seeing the benefits of health IT as a result of the significant strides that have been made in the adoption and meaningful use of electronic health records,” said Karen DeSalvo, M.D., M.P.H., national coordinator for health information technology. “We look forward to working with our partners to ensure that people’s digital health information follows them across the care continuum so it will be there when it matters most.”
Guest post by Michael Murphy, MD, co-founder and CEO, Scribe America.
In May 2014, the Department of Health and Human Services released findings of their most recent study pertaining to reimbursement amounts provided to outpatient physicians for evaluation and management services. The study uncovered that Medicare overpaid outpatient physicians close to $7 billion and most improper payments were results of errors in coding and insufficient documentation (Table 1, highlights the percentage of claims that were wrongfully claimed for in 2010.). However this is not a problem isolated to physicians from the outpatient clinics, as physicians from inpatient clinics could also be found guilty of miscoding and insufficient documentation.
Recovery audit contractors (RACs) were created by the Medicare Modernization Act to evaluate the accuracy of Medicare claims. If a claim is determined by RAC to be flawed for any one of the many different reasons, the claim is denied. Although Medicare’s retrospective program of auditing bills is good, it is not perfect. There has been a huge spike in appeals of Medicare payment decisions, from hospitals mainly, since the introduction of the auditing program and delays in the appeal process has resulted in hospitals facing great financial difficulties as a lot of their funds are tied up till the appeal has been heard.
Adapted from : “Improper payments for evaluation and management services cost medicare billions in 2010”
In order to receive reimbursement from Medicare, a physician needs to follow a three-step process: 1) appropriate coding of the service provided by utilising current procedural terminology (CPT); 2) appropriate coding of the diagnosis using ICD-9 code; and 3) the Centers for Medicare and Medicaid Services (CMS) determination of the appropriate fee based on the resources-based relative value scale (RBRVS). It is not surprising that physicians often incorrectly code patient visits and procedures as there exists a truly daunting number of codes from which to choose. Moreover, coding structure and reimbursements schemes are constantly evolving and becoming more complex, resulting in a coding process that is often cumbersome and difficult.
Cerner Corporation (Nasdaq: CERN) and Siemens AG today announced they signed a definitive agreement for Cerner to acquire the assets of Siemens’ health information technology business unit, Siemens Health Services, for $1.3 billion in cash. By combining investments in R&D, knowledgeable resources, and complementary client bases, the acquisition creates scale for future innovation. As part of the agreement, Cerner and Siemens will form a strategic alliance to bring new solutions to market that combine Cerner’s health IT leadership and Siemens’ strengths in medical devices and imaging.
“We believe this is an all-win situation for the clients of both organizations and all of our associates and shareholders,” said Neal Patterson, Cerner chairman, CEO and co-founder. “Through more than $4 billion of cumulative investments in R&D, Cerner has established a strong market standing and is positioned for continued growth. Siemens’ health care IT assets provide additional scale, R&D, an impressive client base, and knowledgeable and experienced associates who will help Cerner achieve our plans for the next decade. In addition, the alliance we’re creating will drive the next generation of innovations that embed information from the EMR inside advanced diagnostic and therapeutic technologies, benefiting our shared clients.”
Based on 2014 estimates, Cerner and Siemens Health Services have combined totals of more than:
20,000 associates in more than 30 countries
18,000 client facilities, including some of the largest health care organizations in their respective countries
$4.5 billion of annual revenue
$650 million of annual R&D investment
The transaction is expected to be more than $0.15 accretive to Cerner’s non-GAAP diluted EPS in 2015, and more than $0.25 accretive in 2016. Non-GAAP earnings are expected to exclude share-based compensation expense, one-time transaction costs, and acquisition-related amortization and deferred revenue adjustments.
Implementation of electronic health records is considered a national priority in this era of healthcare reform. However if EHRs are not implemented correctly they can be painful.
EHRs that are not implemented effectively can affect productivity and revenue. The extra documentation requirements and intricate workflows create distance between physicians and their patients. Physicians have reported that they spend too much time on EHRs and that they don’t get enough time to interact with their patients. But physicians often communicate that spending time on EHRs is crucial to creating a trusted set of structured data that can guide their business. Every click that providers make creates important data points that can be used to inform the efficient delivery of their practice.
Every EHR saves a large amount of data inside it regarding patient health, effectiveness of treatments, system efficiency and provider tendencies. Despite the extra time and effort that is dedicated to electronic documentation, many practices and physicians do not make full use of this precious data set that they have produced.
If a practice can get its EHR adoption right they can make a number of positive results, some of which are mentioned below:
Revenue Gains
By overcoming the difficulties providers can see more patients and will be able to generate more billed revenue using its existing staff. Furthermore, if a provider is using its EHR efficiently then the improved documentation produces billing at higher rates, combined with increased patient flow. This represents significant potential revenue.
Quick Cash Flow
Many of the practices work on revenue cycle management, but few make it flawless. With increased charge accuracy and reduced time for denials, there will be an increase in the yield with timely reimbursements by the payers.
Add to the list of known certainties: death, taxes, and the need to lower the cost of healthcare.
Neither HIPAA standards nor encryption were created with the purpose of lowering the cost of healthcare, but neither was penicillin originally purposed as an antibiotic. Both welcome side effects in the world of medicine.
Cloud Computing and Healthcare
Healthcare and medical companies are migrating to cloud computing in record numbers. The cloud offers flexibility and scalability to manage ever-growing databases of patient records. At the same time, it offers mobility to enable care providers to access patient information remotely and shareability to share data with colleagues, specialists, and labs. The cloud, perhaps most importantly, enables cost reduction on several levels.
It eliminates the need healthcare organization have to purchase, maintain, upgrade, and replace costly computing equipment and staff.
It saves costs of multiple providers running multiple tests by enabling them to share and track the results.
It saves time and money by enabling paperless transmission of prescriptions and insurance claims. It also increases the accuracy of reimbursement coding.
Now, HIPAA omnibus and the American Recovery and Reinvestment Act (ARRA) requirements stipulate everyone in the healthcare industry begin migrating patient records and other data to cloud computing. Essentially, by 2015, all medical professionals with access to patient records must utilize electronic medical and health records (EMR and EHR), or face penalties.
Guest post by Brandee Norris, assistant professor healthcare administration and management school of business and technology, Trevecca Nazarene University.
The health information technology (HIT) industry is on the verge of a dramatic dawning. As more healthcare organizations transition to paperless systems and to meaningful use of a certified electronic health record (EHR), the need to ensure the safety and integrity of healthcare data and to eliminate the risk of health IT breaches increases. In the past five years, the Department of Health and Human Services reported more than 800 breaches of healthcare patient data, breaches that affected more than 30 million patients. Breaches in electronic healthcare data cause serious negative outcomes for patients, stakeholders, and organizations—both public and private—and result in millions of dollars in fines and losses.
As the use of HIT systems increases within the healthcare industry, hospitals and providers of private practices are seeking effective methods to enhance data storage and streamline access to patient information without jeopardizing the privacy of the data. A possible solution to this problem is the transference of protected health information from a local system’s network to a cloud-based electronic medical records (EMR) service. Cloud computing may be categorized as private or public. Based on HIPAA regulations, professionals in the healthcare industry continue to dispute the legitimacy of public cloud computing and compliance with specific requirements of the HIPAA.
Contrary to provisions mandated by HIPAA, cloud-based platforms could accommodate the growing needs of healthcare organizations and provide flexibility to adapt to frequent changes, while providing significant cost savings. The primary objectives of using any variation of a cloud-based program are efficient leveraging of healthcare information, enhancement of patient experience, versatility for providers, and improved clinical outcomes. Cloud-based programs permit 24-hour patient access to electronic records.
Consumers in the 21st century prefer convenient methods to access healthcare services and manage personal information. Consequently, healthcare organizations have adopted patient-centered models to deliver health care and increase provider-patient communication. In addition, cloud-based platforms can facilitate the use of mobile devices, such as smartphones and iPads, allowing patients and providers to access health software applications. The number of healthcare consumers using smartphones to access health information soared from more than 60 million to more than70 million in the last two years. Anderson projects an estimated 20 percent annual increase of software application sales during the next five years.
Healthcare providers have suggested that significant benefits could occur for patients using mobile software applications to monitor their health status. Currently, numerous types of health software applications exist that are free or obtainable at a reasonable fee. Last year, healthcare providers used health software applications for obtaining diagnostic test results, sending alerts for patients to self- medicate, track and monitor levels of chronic pain, and store vital signs and emergency contact information. Consumers should be aware that a compatible operating system and adequate storage space are required to download health software applications to a mobile device.
Guest post by Keith Boyce, vice president of business development, RxOffice.
The recent postponement of the implementation of ICD-10 is nothing but good news. Moving the deadline to next year gives providers an opportunity to conduct further research and select the software that is compliant and the least disruptive of their existing processes while keeping the best interest of the patient in mind.
ICD-10 was the first step by the Obama administration’s healthcare plan, Obamacare, which revealed the need for a universal software platform that could work in all medical areas. Some professionals say the ICD-10 and other requirements of the new healthcare plan will cause physicians to spend more time on paper work and less time with patient care. If that is the case, healthcare providers will need a system that will cut down on the amount of time needed for paperwork. With the extension in ICD-10’s implementation, now is the time to make decision about keep or modifying current systems or investing in new ones.
The new regulations proposed through Obamacare will have more of an effect on small to mid-size healthcare providers and the IT companies that cater to them. Larger IT firms are not affected as much because their clients are the hospitals and large research clinics that do not have to adhere to the requirements of ICD-10. This means that these firms are less likely to understand and provide compliant software to smaller, special medical centers, such as diabetes, mental health and podiatry to name a few.
Healthcare providers should look for systems with the following characteristics:
Tina Greene, Senior Regulatory Affairs Consultant, Casualty Solutions Group, Regulatory Affairs and Compliance at Mitchell International.
The Administrative Simplification provisions of the Federal Health Insurance Portability and Accountability Act of 1996 (HIPAA, Title II) include requirements that national standards for electronic health care transactions be established. These standards were adopted to improve the efficiency and effectiveness of the nation’s health care system by encouraging the widespread use of electronic data interchange in health care.
In the final rule, it’s recognized that:
“Non-HIPAA entities such as workers’ compensation programs and property and casualty insurance accept electronic healthcare transactions from providers, however, the Congress did not include these programs in the definition of a health plan under section 1171 of the Act.
The statutory definition of a health plan does not specifically include workers’ compensation programs, property and casualty programs, or disability insurance programs, and, consequently, we are not requiring them to comply with the standards. However, to the extent that these programs perform healthcare claims processing activities using an electronic standard, it would benefit these programs and their healthcare providers to use the standard we adopt.”
“Health Insurance Reform: Standards for Electronic Transactions; Announcement of Designated Standard Maintenance Organizations; Final Rule and Notice.” Federal Register 65:160 (17 August 2000) p. 50319.
In an effort to realize the effectiveness of electronic data interchange, some states have adopted regulations requiring electronic healthcare transactions for billing and payment. Early implementers of EDI for workers’ compensation in various states identified issues such as payer ID (claim administrator identification), claim filing indicator code and claim number, and worked with stakeholders to find resolutions. These issues have since been addressed in industry standards.
