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.
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.
Kerry’s office, the money SBA provides to practices can be used for
“computer hardware, software, and other technology that will assist
in the use of electronic health records and prescriptions.”
The
SBA uses a number of criteria for deciding which businesses are
eligible for its support. One proWC: 486gram guarantees “special
purpose loans” 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.
If
Sen. Kerry’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.
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.
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 –
delivering the clinical tools needed to succeed in today’s health
care environment.