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GAO-12-778R 1 (2012-07-26)

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         Accountabiliy - Integrity - Reliability
United States Government Accountability Office
Washington, DC 20548



           July 26, 2012

           Congressional Committees

           Subject: Electronic Health Records: Number and Characteristics of Providers
                    Awarded Medicare Incentive Payments for 2011

           Widespread use of health information technology, such as electronic health records
           (EHR), has the potential to improve the quality of care patients receive and reduce
           health care costs. However, studies have estimated that as of 2009, 78 percent of
           office-based physicians and 91 percent of hospitals had not adopted EHRs. 1 Among
           other things, the Health Information Technology for Economic and Clinical Health
           (HITECH) Act, enacted as part of the American Recovery and Reinvestment Act of
           2009 (Recovery Act)2 provided funding for various activities intended to promote the
           adoption and meaningful use of certified EHR technology.3 The largest of these
           activities, in terms of potential federal expenditures, are the Medicare and Medicaid
           EHR programs.4 Starting in 2011, these programs have provided incentive payments
           for certain providers, including both hospitals and health care professionals such as
           physicians and dentists, that demonstrate meaningful use of certified EHR
           technology and meet other program requirements established by the Centers for
           Medicare & Medicaid Services (CMS). Beginning in 2015, the Medicare EHR


           'See C. J. Hsiao, E. Hing, T. C. Socey, and B. Cai, Electronic Medical Record/Electronic Health
           Record Systems of Office-Based Physicians: United States, 2009 and Preliminary 2010 State
           Estimates, National Center for Health Statistics Health E-stat (2010); and A. K. Jha, C. M.
           DesRoches, P. D. Kralovec, and M. S. Joshi, A Progress Report on Electronic Health Records In
           U.S. Hospitals, Health Affairs, no.10 (2010):1951-1957.
           2The HITECH Act was enacted as title XIII of division A and title IV of division B of the Recovery Act.
           Pub. L. No. 111-5, div. A, tit. XIII, 123 Stat. 115,226-279 and div. B, tit. IV, 123 Stat. 115,467-496
           (2009).
           3Congress defined meaningful use in this context to reflect that the user of health information
           technology demonstrates to the satisfaction of the Secretary of the Department of Health and Human
           Services (HHS) that the technology is certified and being used in a meaningful manner, that the
           technology is connected in a manner that provides for the electronic exchange of health information
           to improve the quality of health care, and that such information is submitted in a form and manner
           specified by the Secretary. See Pub. L. No. 111-5, § 4101 (a) 123 Stat. 467-472. To be certified, EHR
           technology must meet certain criteria established by HHS's Office of the National Coordinator for
           Health Information Technology that describe minimum related performance standards and
           implementation specifications.
           4See Pub. L. No. 111-5, §§ 4101-4201, 123 Stat. 467-494. Medicare is a federal program financing
           health care for individuals aged 65 and older, certain disabled individuals, and individuals with end-
           stage renal disease. In 2010, Medicare covered 47 million beneficiaries. Medicaid is a federal-state
           program financing health care for certain low-income individuals. In fiscal year 2009, Medicaid
           covered over 65 million beneficiaries.


GAO-12-778R Electronic Health Records


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