American Recovery and Reinvestment Act (ARRA)
HIT Health Information Technology
B, Title IV, Sec. 4201
The ARRA Health Information Technology (HIT) funding includes $2 billion in "jump-start" funding the Office of the National Coordinator for Health Information Technology. This is immediate, discretionary funding that the national coordinator can distribute via grants or low-interest loans to hospitals and physician practices for implementation of electronic health records and other HIT. The Department of Health and Human Services will define the degree to which jump-start funds are grants or loans.
The funding also includes $17 billion in Medicare and Medicaid incentive payments for medical providers over a period of several years. Physicians who have not adopted certified electronic records systems by 2014 will see decreased reimbursement. Currently states do not receive federal financial participation for the purchase, adoption and use of electronic health records, or for the operation and maintenance of such systems.