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New federal rules may help you transition to electronic health records
The federal Stark and anti-kickback laws strictly govern relationships and exchanges between health care entities. However, two new Department of Health and Human Services (HHS) rules, effective Oct. 10, 2006, created new exceptions and safe harbors under those laws to support physicians’ adoption of technology.
One of the rules sets up two new safe harbors under the anti-kickback statute for electronic prescribing and electronic health records (EHRs).
Electronic prescribing
The electronic prescribing safe harbor protects unlimited donation of electronic prescribing technology (hardware, software, information technology, training and support) by:
- A hospital to its medical staff
- A medical group practice to its members
- A prescription drug plan sponsor or Medicare Advantage organization to prescribing health care professionals, pharmacies and pharmacists in the plan
Prescribing applies broadly to all items and services that normally require a prescription, including drugs and durable medical equipment. Those who already possess similar technology are not eligible.
Rules for EHRs
The EHR safe harbor protects donation of interoperable software or information technology and training (not hardware) that is necessary and used predominantly — but not exclusively — to create, maintain, transmit or receive EHRs. An electronic prescribing component must be included.
Covered donors may include individuals and entities that provide covered services and submit claims or requests for payment to any federal health care program and health plans. Covered recipients include individuals and entities engaged in the delivery of health care.
Recipients must pay at least 15 percent of the donor’s cost, and the donor cannot provide or finance the recipient’s payment. The safe harbor ends on Dec. 31, 2013.
Neither an electronic prescribing nor electronic health records system can be donated based on volume or value of referrals from a recipient.
More rules
The other rule creates two new exceptions under the Stark law essentially identical to the anti-kickback safe harbors.
The 2003 Medicare Prescription Drug Improvement and Modernization Act mandated these rules to encourage physicians to adopt electronic prescribing and EHRs. Although Medicare mandates electronic prescribing for some entities, it is currently optional for physicians.
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