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Physicians who are adopting electronic health records (EHR) systems recently received the promise of help from government subsidies that will be paid out in increments over five years, beginning in 2011. The incentives are quite substantial, giving physicians who are eligible up to $44,000 from Medicare or $64,000 from Medicaid if they have enough Medicaid business. However, to receive the government subsidies, physicians must make a significant investment of their own money or borrow money through a loan.
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Many physicians are having a difficult time getting loans from banks who are tightening their terms for borrowers since the credit crunch began. To make it easier for physicians to purchase EHR systems, Senator John Kerry (D-Mass.) has proposed legislation that will allow small businesses to get loans backed by the Small Business Administration (SBA). According to a press release issued by Sen. Kerryandrsquo;s office, the money SBA provides to practices can be used for andldquo;computer hardware, software, and other technology that will assist in the use of electronic health records and prescriptions.andrdquo;
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The SBA uses a number of criteria for deciding which businesses are eligible for its support. One proWC: 486gram guarantees andldquo;special purpose loansandrdquo; that will further or cushion the impact of government policies. For the businesses who are chosen, the SBA guarantees up to 85 percent of the principal on loans of up to $150,000 and 75 percent on loans of $150,000 or more in its principal loan program. The cap for SBA loans is $2 million. Interest rates will be negotiated between the lender and borrower, but are subject to the SBA maximums established.
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If Sen. Kerryandrsquo;s bill passes, it will provide further assistance to physicians who have been reluctant to adopt electronic health record systems for their practices due to financial barriers. Electronic health record systems will improve the workflow of modern health care facilities and help evolve their approach to medicine in regards to technological capabilities. However, education and implementation support will be necessary for all practices and facilities in order to assist the widespread health care adoption of electronic health record systems.
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Electronic health record systems benefit our health care system and the health of our nation. Widespread adoption will happen, but support and education is a necessary step for all involved. If you are searching for more information about electronic health record systems and how they may improve the quality of health care for your practice, contact e-MDs, a leader in electronic medical record software provision.
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e-MDs offers a host of affordable solutions for physicians and facilities looking to modernize or enhance their services with the latest EHR/EMR technology. e-MDs is committed to providing affordable and integrated EHR and Practice Management Software solutions, including clinical, financial and document management modules designed to automate medical practice processes and chart management andndash; delivering the clinical tools needed to succeed in todayandrsquo;s health care environment.
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Date: Fri, 2 Jul 2010 -
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