Health Information Technology: Promoting Electronic Connectivity in Healthcare

CRS Report for Congress
Health Information Technology: Promoting
Electronic Connectivity in Healthcare
April 13, 2005
C. Stephen Redhead
Specialist in Life Sciences
Domestic Social Policy Division


Congressional Research Service ˜ The Library of Congress

Health Information Technology:
Promoting Electronic Connectivity in Healthcare
Summary
The Institute of Medicine, the National Committee on Vital and Health
Statistics, and other expert panels have identified information technology (IT) as one
of the most powerful tools for reducing medical errors, lowering health costs, and
improving the quality of care. However, the U.S. health care industry lags far behind
other sectors of the economy in its investment in IT, despite growing evidence that
electronic information systems can play a critical role in addressing the many
challenges the industry faces. Adoption of health IT systems faces significant
financial, legal, and technical obstacles.
Congress and the Administration have taken a number of important steps to
promote health IT. The 2003 Medicare Modernization Act instructed the HHS
Secretary to adopt electronic prescription standards and establish a Commission for
Systemic Interoperability. The Commission is charged with developing a
comprehensive strategy for implementing data and messaging standards to support
the electronic exchange of clinical data. On April 27, 2004, President Bush called
for the widespread adoption of interoperable electronic health records (EHRs) within
10 years and established the position of National Coordinator for Health Information
Technology. Pursuant to the President’s order, the National Coordinator has
developed a strategic 10-year plan outlining steps to transform the delivery of health
care by adopting EHRs and developing a National Health Information Infrastructure
(NHII) to link such records nationwide.
The strategic plan identifies several potential policy options for providing
incentives for EHR adoption. They include: providing grants to stimulate EHRs and
regional information exchange systems; offering low-rate loans and loan guarantees
for EHR adoption; amending federal rules (e.g., Medicare physician self-referral law)
that may unintentionally impede the development of electronic connectivity among
health care providers; and using Medicare reimbursement to reward EHR use.
Health IT has broad bipartisan support among lawmakers. The 109th Congress
is likely to consider legislation to boost federal investment and leadership in health
IT and provide incentives both for EHR adoption and for the creation of regional
health information networks, which are seen as a critical step towards the goal of
interconnecting the health care system nationwide. Several health IT bills were
introduced during the last Congress and, to date, two bills (H.R. 747, S. 16) have
been introduced this year. Congress laid the groundwork for establishing an NHII
when it enacted the 1996 Health Insurance Portability and Accountability Act
(HIPAA). HIPAA instructed the HHS Secretary to develop privacy standards to give
patient more control over the use of their medical information, and security standards
to safeguard electronic patient information against unauthorized access, use, or
disclosure.



Contents
In troduction ......................................................1
Information Technology and Health Care Quality.........................2
Electronic Health Record (EHR)..................................2
Clinical Decision Support (CDS)..................................3
Computerized Physician Order Entry (CPOE).......................3
Health Information Exchange....................................3
Barriers to the Adoption of Health IT..................................4
Standards ....................................................4
Financial Challenges...........................................6
Legal Barriers.................................................7
National Framework for Strategic Action...............................7
Health IT Legislation (108th and 109th Congress).........................9
Appendix A.....................................................22
Congressional Hearings (2002–2005).............................22
GAO Reports and Testimony (2003–2005).........................23
Internet Resources............................................23
List of Tables
Table 1. Summary of Health Care Information Technology (IT) Provisions
in the Medicare Modernization Act (P.L. 108-173)...................10
Table 2. Comparison of Bills to Encourage the Adoption of Health
Information Technology (IT)....................................12
Table 3. Summary of Health Information Technology (IT) Legislation
Introduced in the 108th Congress.................................14
Table 4. Summary of Health Information Technology (IT) Legislation
Introduced in the 109th Congress.................................20



Health Information Technology: Promoting
Electronic Connectivity in Healthcare
Introduction
The Institute of Medicine (IOM), the National Committee on Vital and Health
Statistics (NCVHS), and other expert panels have identified information technology
(IT) as one of the most powerful tools for reducing medical errors, lowering health
costs, and improving the quality of care.1 They recommend that health care
organizations adopt IT systems to support the electronic collection and exchange of
patient information. The goal is for these systems to operate seamlessly as part of a
national health information infrastructure (NHII), which would enable health care
providers anywhere in the country to access patient information at the point of care.
While supporting the delivery of high-quality patient care, experts emphasize that a
NHII must also meet the nation’s needs for public health surveillance, biodefense,
and biomedical research, and protect the privacy of individuals.
The U.S. health care industry lags well behind other sectors of the economy in
its investment in IT, despite growing evidence that electronic information systems
can play a critical role in addressing the many challenges the industry faces. There
are significant financial, legal, and technical obstacles to the adoption of health IT
systems. The issue for Congress, in which there is broad bipartisan support for health
IT, is how best to create incentives for the adoption of IT throughout the health care
industry.
Congress and the Administration have already taken a number of important
steps to promote health IT. The 2003 Medicare Modernization Act instructed the
HHS Secretary to adopt electronic prescription standards and establish a Commission
for Systemic Interoperability. The Commission is charged with developing a
comprehensive strategy for implementing data and messaging standards to support
the electronic exchange of clinical data. On April 27, 2004, President Bush called
for the widespread adoption of interoperable electronic health records (EHRs) within
10 years and established the Office of the National Coordinator for Health
Information Technology (ONCHIT). ONCHIT has developed a strategic 10-year
plan outlining steps to transform the delivery of health care by adopting EHRs and
developing a National Health Information Infrastructure (NHII) to link such records
nationwide. The strategic plan identifies several potential policy options for


1U.S. Department of Health and Human Services, Information for Health: A Strategy for
Building the National Health Information Infrastructure, Report and Recommendations
from the National Committee on Vital and Health Statistics, Nov. 15, 2001, available online
at [http://www.ncvhs.hhs.gov]; and, Institute of Medicine, Crossing the Quality Chasm: Ast
New Health System for the 21 Century, Washington, DC: National Academy Press, 2001.

providing incentives for EHR adoption. They include: providing grants to stimulate
EHRs and regional information exchange systems; offering low-rate loans and loan
guarantees for EHR adoption; amending federal rules (e.g., Medicare physician self-
referral law) that may unintentionally impede the development of electronic
connectivity among health care providers; and using Medicare reimbursement to
reward EHR use.
Lawmakers in the 109th Congress are likely to consider legislation to boost
federal investment and leadership in health IT and provide incentives both for EHR
adoption and for the creation of regional health information networks, which are seen
as a critical step towards the goal of interconnecting the health care system
nationwide. Congress laid the groundwork for establishing an NHII when it enacted
the 1996 Health Insurance Portability and Accountability Act (HIPAA). HIPAA
instructed the HHS Secretary to develop privacy standards to give patients more
control over the use of their medical information, and security standards to safeguard
electronic patient information against unauthorized access, use, or disclosure.
This report summarizes recently proposed and enacted legislation to promote
the use of EHRs and the development of the NHII. It begins with a brief discussion
of some of the benefits of broadening the application of information technology (IT)
in health care, as well as the significant financial, technical, and legal barriers to the
adoption of health IT. That is followed by a summary of the goals articulated in the
federal government’s strategic framework for health IT adoption. The report
concludes with a set of tables summarizing health IT legislation in the 108th and 109th
Congresses. Appendix A provides additional background information on health IT,
including a list of congressional hearings, GAO reports, and online resources.
Information Technology and Health Care Quality
In its June 2004 report, Revolutionizing Health Care Through Information
Technology, the President’s Information Technology Advisory Committee (PITAC)
proposed a framework for a NHII composed of four elements.2
Electronic Health Record (EHR)
The EHR provides a clinician with real-time access to patient information, as
well as a complete longitudinal record of care. A fully integrated EHR enables a
physician to update clinical and other information about a patient on a continuous
basis. Such an integrated system permits a physician, for example, to view a history
of the patient’s medical condition and visits to health providers (with submenus for
notes from those visits), images and reports of diagnostic procedures, current
medications, functional status and social service eligibility, schedule of preventive
services, allergies, and contact information for family caregivers.


2Report can be obtained at [http://www.nitrd.gov/pitac].

Clinical Decision Support (CDS)
Linking a patient’s EHR to a computerized CDS system provides clinicians with
real-time diagnostic and treatment recommendations. CDS systems, which include
a range of technologies from simple clinical alerts and warnings of prescription drug
interactions to detailed clinical protocols and procedures, facilitate the practice of
evidence-based medicine by providing clinicians with state-of-the-art medical
knowledge at the point of care.
Computerized Physician Order Entry (CPOE)
CPOE minimizes handwriting and other communication errors by having
physicians and other providers enter orders into a computer system. Originally
designed for ordering medications, more advanced CPOE systems include orders for
x-rays and other diagnostic procedures, referrals, discharges, and transfers. CPOE
may also be linked to a patient’s EHR and various decision support functions.
Health Information Exchange
The final and most important element of a NHII is electronic connectivity (via
the Internet and other networks) enabling health care providers to exchange patient
health information. Networks that permit electronic communication among providers
must be secure in order to safeguard the information from unauthorized access, use,
and disclosure. They also require the development of data and messaging standards
to establish the critical goal of interoperability, that is, the ability of two or more IT
systems (computers, networks, software, and other IT components) to communicate
with one another and make sense of the data they exchange. A small but growing
number of communities and health care systems around the country have developed
EHRs and established secure platforms for the exchange of health data among
providers, patients, and other authorized users (e.g., the Veterans Health
Administration, the Indiana Network for Patient Care, the Santa Barbara County Care
Data Exchange, and the New England Healthcare Electronic Data Interchange
Network).
The IOM’s March 2001 report on health care quality, Crossing the Quality
Chasm: A New Health Care System for the 21st Century, emphasized the need for
improvement in six key areas: safety, effectiveness, responsiveness to patients,
timeliness, efficiency, and equity. A growing number of published studies suggest
that IT can play a key role in improving the quality of care in each of these areas. In
the area of safety, CPOE systems with decision support functions can reduce errors
in drug prescribing and dosing. Clinical decision support systems have been shown
to improve efficiency, for example, by reducing redundant lab tests. They can also
improve the effectiveness of care by promoting compliance with clinical practice
guidelines. Health IT may be especially beneficial for inner-city and rural
populations and other medically underserved areas. Real-time access to specialty
information, including consultations between rural physicians and leading specialists
at academic medical centers, helps promote an equitable health care system by
reducing the geographic variability in access to the best quality care. The secure
transmission of patient information among physicians will significantly improve the



coordination of care among the 60 million Americans with multiple chronic
conditions. Studies have shown that poor coordination of care among Medicare
beneficiaries with multiple chronic conditions leads to unnecessary hospitalization,
duplicate tests, conflicting clinical advice, and adverse drug reactions as a result of
over-medication.
An IT infrastructure has great potential to contribute to achieving other
important national objectives, such as homeland security and improved public health
services. Linked health information networks are key to reducing the time it takes
to detect and respond to disease outbreaks, whether they are naturally occurring or
the result of a bioterrorist attack. They are also an important tool for helping
organize and execute large-scale vaccination campaigns and for monitoring the health
of the population. Finally, health IT is becoming increasingly important for various
forms of biomedical and health services research, and for translating research
findings into clinical practice more quickly. By some estimates it may take as long
as 17 years for new research findings to be fully integrated into general medical
pract i ce. 3
Barriers to the Adoption of Health IT
The U.S. health care industry, which represents about 15% of GDP, lags far
behind other sectors of the economy in its investment in IT, despite growing evidence
that electronic information systems can play a critical role in addressing many of the
challenges the industry faces. There are significant obstacles to the adoption of
EHRs and the creation of a NHII, some of which are briefly discussed below.
Standards
Enormous amounts of data needed for clinical care, patient safety, and quality
improvement currently reside on computers. However, EHRs and community-based
health information networks have been slow to develop because of a lack of
interoperability standards to support electronic data exchange. Physicians and other
providers are hesitant to invest in IT systems, fearing that they might not be able to
exchange patient information with local pharmacies, hospitals, or even other
physicians. Common standards for organizing, representing, and encoding health
information permit the efficient exchange of clinical and patient safety data. They
also support the assimilation of external data sources into decision support tools for
providers (e.g., alerts for possible drug-drug interactions).
The federal government is playing a leading role in encouraging the
development and adoption of interoperability standards for health information
throughout the U.S. health care system. The Departments of Health and Human
Services (HHS), Defense (DOD), and Veterans Affairs (VA) are partners in the
Consolidated Health Informatics (CHI) initiative, one of 24 eGov initiatives to


3E. Andrew Balas and Suzanne A. Boren, “Managing Clinical Knowledge for Health Care
Improvement,” in Yearbook of Medical Informatics 2000: Patient-Centered Systems, pp. 65-

70.



support President Bush’s Management Agenda. The goal of the CHI initiative is to
establish federal health information interoperability standards both to promote
information sharing across the three federal departments that deliver health care
services and to serve as a model for the private sector. To date, the agencies have
adopted 20 sets of standards developed by private-sector Standards Development
Organizations (SDOs). They include messaging standards, standards for the
electronic exchange of clinical lab results, standards for retail pharmacy transactions,
and standards for the retrieval and transfer of images and associated diagnostic
information. HHS has also signed an agreement to license Systematized
Nomenclature of Medicine — Clinical Terms (SNOMED CT), a standardized
medical vocabulary developed by the College of American Pathologists and available
for free to users in the United States. SNOMED CT, which is now available through
the National Library of Medicine,4 is the most comprehensive clinical vocabulary
available and covers most aspects of clinical medicine. It will help structure and
computerize the medical record and reduce variability in the way the data are
captured, encoded and used for clinical care of patients and for medical research.
In May 2003, HHS requested that the IOM provide guidance to the agency on
a set of basic “functionalities” that an EHR should possess, that is, the types of
information that should be available to providers when making clinical decisions
(e.g., diagnoses, allergies, lab results), and the types of decision-support capabilities
that should be present (e.g., alerts to potential drug-drug interactions).” The IOM did
not address specific data standards (e.g., terminology, messaging standards,
diagnostic codes). Health Level Seven (HL7), a leading SDO working on the
development of an EHR standard, has taken the core functionalities identified by the
IOM and incorporated them into its draft standard, which has been approved and is
undergoing a two-year trial before it becomes an official standard.5
Coordinating the care a patient receives from multiple providers does not
require the transmission of the entire EHR with each referral. In most cases the
physician to whom a patient is referred needs only the most relevant and timely facts
about the patient’s condition. ASTM International, in collaboration with the
Massachusetts Medical Society, the Health Information Management and Systems
Society, and the American Academy of Family Physicians, is developing the
Continuity of Care Record (CCR) to meet that need. The CCR is intended to be a
national standard for all relevant information necessary for continuity of care. It
consists of a minimum data set that includes provider information, insurance
information, patient’s health status (e.g., allergies, medications, vital signs,
diagnoses, recent procedures), recent care provided, as well as recommendations for
future care and reasons for referral or transfer. The data contained within the CCR
are a subset of the patient’s full record that exists in an EHR. Each new provider that
sees the patient is able to access the CCR and update the information as necessary.
Thus the CCR provides a vehicle for exchanging clinical information among


4SNOMED CT is available online at [http://umlsinfo.nlm.nih.gov].
5Information on the HL7 EHR standard is available online at [http://www.hl7.org/ehr].

providers, institutions, or other entities. It may also be used by the patient as a brief
summary of recent care.6
Congress laid the groundwork for establishing an NHII when it enacted the
HIPAA, P.L. 104-191 in 1996. HIPAA instructed the HHS Secretary to issue
electronic format and data standards for several routine administrative transactions
between health care providers and health plans (e.g., reimbursement claims) and
adopt security standards to safeguard electronic patient information against
unauthorized access, use, or disclosure. Developing a secure platform to protect
confidential health data is central to the growth of an NHII. Under HIPAA, HHS has
also issued health privacy standards that give individuals the right of access to their
medical information and prohibit plans and providers from using or disclosing such
information without the patient’s authorization, except for routine health care
operations and other specified purposes. The growing use and exchange of electronic
health data raises serious privacy concerns among the public and some lawmakers,
who question whether the privacy standards are sufficiently broad in scope to protect
confidential patient information.
Financial Challenges
There are two key financial obstacles to the adoption of EHR and the
development of an NHII: investment costs, and the misalignment between costs and
benefits. Investment in IT is expensive and must compete with other priorities,
including new buildings as well as other technologies with more direct application
to clinical care and greater certainty for increased revenues. A full clinical IT system
that includes CPOE and an EHR, coupled with clinical decision support functions,
can cost tens of millions of dollars for a large hospital. And that does not include the
costs of training and systems support.
The start-up and maintenance costs of IT systems may be especially burdensome
for small physician practices. While those costs vary tremendously, depending on
the nature of the practice and the applications involved, the average cost of an EHR
can range from $16,000 to $36,000. The complexity of the technology, the time to
complete implementation, and the changes in office workflow patterns create
additional barriers to adopting IT systems. But perhaps the most critical issue for
physicians is the perception that the IT-related benefits of improved efficiency and
quality of care accrue largely to the payers and patients, not to the providers who bear
most of the implementation costs.
Rather than reward quality, most physician reimbursement systems emphasize
volume of services. Physicians are paid for each procedure or service they provide,
regardless of its quality. This approach encourages providers to see as many patients
as possible and to emphasize the provision of a billable service, such as an MRI, over
technology that might improve the quality of many services. A physician group that
invests in a clinical IT system to improve the way it manages the care of patients with
chronic conditions can reduce the number of complications and the hospitalization


6For a more detailed discussion of the development of the CCR, go to [http://www.astm.org/
COMMIT / E31_ConceptPaper.doc].

rate. But unless the change results in additional office visits, only the payer sees a
financial benefit. One potential solution to this problem is to provide direct payments
to physicians who use IT systems. Another is to adopt a pay-for-performance scheme
that rewards clinicians who deliver the best quality of care, according to standardized
measures, as opposed to the highest volume of care.
Legal Barriers
Health IT experts have identified several federal laws that may unintentionally
impede the development of electronic connectivity in health care. Because these
laws do not directly address health IT, health care providers are uncertain about what
would constitute a violation or create the risk of litigation. The Medicare physician
self-referral (Stark) law (42 U.S.C. § 1395nn) and the anti-kickback law (42 U.S.C.
§ 1320a-7b(b)), which covers all federal health care programs, are of chief concern.
Both are intended to counter fraud and abuse.7
The Stark law prohibits physicians from referring patients to any entity for
certain health services if the physician has a financial relationship with the entity, and
prohibits entities from billing for any services resulting from such referrals, unless
an exception applies. The law discourages physicians from accepting IT resources
(e.g., hardware and software) from a hospital or other health care entity out of
concern that they would be in violation if they subsequently referred patients to that
entity. The anti-kickback law, like the self-referral law, also impedes arrangements
between health care entities that promote the adoption of health IT. It prohibits an
individual or entity from knowingly or willfully offering or accepting remuneration
of any kind to induce a patient referral for or purchase of an item or service covered
by any federal health care program.
On March 26, 2004, the Centers for Medicare and Medicaid Services (CMS)
published a final interim rule creating several new exceptions under the physician
self-referral law, including one for IT items and services furnished to physicians to
enable them to participate in “community-wide health information systems.”8
Experts have questioned whether this term is sufficiently inclusive to cover all the
various health IT arrangements. They have also criticized the lack of a parallel
exception under the anti-kickback law.
National Framework for Strategic Action
On April 27, 2004, President Bush called for the widespread adoption of
interoperable EHRs within 10 years and signed Executive Order 13335, which
established the position of National Coordinator for Health Information Technology


7The Government Accountability Office (GAO) discussed various potential legal obstacles
to health IT in its recent report HHS’s Efforts to Promote Health Information Technology
and Legal Barriers to Its Adoption, GAO-04-991R, Aug. 13, 2004, available online at
[ h t t p : / / www.ga o.gov] .
869 Federal Register 16053, Mar. 26, 2004.

within HHS. Secretary Tommy Thompson appointed David Brailer, MD, PhD, one
of the country’s foremost health IT experts, to serve in the new position. The
Executive Order directed the National Coordinator within 90 days to develop a
strategic 10-year plan outlining steps to transform the delivery of health care by
adopting EHRs and developing a NHII to link such records nationwide.
On July 21, 2004, Brailer and Thompson released a Framework for Strategic
Action entitled, The Decade of Health Information Technology: Delivering
Consumer-Centric and Information-Rich Health Care.9 Although the federal
government has taken the lead in setting the health IT agenda, the framework sets out
a bottom-up approach in which the role of HHS is to promote and encourage the
private sector to build community-level networks. Adopting interoperability
standards will over time permit these local networks to connect with one another to
form an NHII. The framework identified four major goals, with strategic action areas
for each:
!Inform clinical practice. This goal focuses on bringing EHRs into clinical
practice by providing incentives for EHR adoption, reducing the risk of EHR
investment, and promoting EHR diffusion in rural and medically underserved
areas.
!Interconnect physicians. This goal centers on building an interoperable health
information infrastructure so that EHRs follow the patient, and clinicians have
access to critical health information when treatment decisions are being made.
The strategies for realizing this goal involve fostering community-based health
information exchange projects, developing a national health information
network, and coordinating federal health information systems.
!Personalize health care. This goal involves using health IT to help
individuals manage their own wellness and become more involved in personal
health decisions.
!Improve population health. The final goal requires the timely collection,
analysis, and dissemination of clinical information to improve the evaluation
of health care delivery, public health monitoring, and biosurveillance. It also
helps accelerate research and the translation of research findings into clinical
products and practice.
The framework identifies several potential policy options for providing
incentives for EHR adoption. They include:
!regional grants and contracts to stimulate EHRs and community information
exchange systems;
!improving the availability of low-rate loans for EHR adoption;
!updating federal rules on physician self-referral that may unintentionally
restrict the development of health information networks;


9The strategic plan, along with an accompanying fact sheet and press release, is available
online at [http://www.hhs.gov/onchit/framework].

!using Medicare reimbursements to reward the use of EHRs; and
!funding Medicare pay-for-performance demonstration programs.
Health IT Legislation (108th and 109th Congress)
The Medicare Prescription Drug, Improvement, and Modernization Act (MMA),
which the President signed into law on December 8, 2003 (P.L. 108-173), included
provisions for electronic prescribing standards. The bill requires the standards to
include not just electronic script writing, but also the patient’s medication history and
decision support for identifying potential drug-to-drug interactions. In addition, the
MMA called for the establishment of a commission to develop a comprehensive
strategy for the adoption and implementation of health IT data standards. Finally, the
bill authorized IT grants for physicians and established demonstration projects to
determine how to improve the quality of care through the adoption of IT. Table 1,
beginning on page 10, provides a summary of the IT-related provisions in the MMA.
In the 108th Congress, the House and Senate passed competing versions of the
Patient Safety and Quality Improvement Act (H.R. 663, S. 720). Despite broad
bipartisan support for the legislation, no further action took place before adjournment
in December 2004. On March 9, 2005, the Senate Committee on Health, Education,
Labor, and Pensions (HELP) unanimously approved a new patient safety bill (S.
544), which is identical to last year’s Senate-passed measure. The patient safety
legislation is intended to encourage the voluntary reporting of information on medical
errors by establishing federal evidentiary privilege and confidentiality protections for
such information. For more information on the patient safety legislation, see CRS
Report RL31983, Health Care Quality: Improving Patient Safety by Promoting
Medical Errors Reporting.
S. 544 also requires the HHS Secretary to adopt voluntary, national
interoperability standards for the electronic exchange of health care information.
H.R. 663, in the 108th Congress, contained a similar requirement, as well as several
additional health IT provisions, none of which are included in S. 544. The House-
passed bill authorized health IT grants for physicians and hospitals, and mandated the
creation of a Medical Information Technology Advisory Board (MITAB).
During the 108th Congress, lawmakers introduced a number of bills (i.e., H.R.
2915, H.R. 4880, S. 2003, S. 2421, S. 2710, S. 2907) to boost federal investment and
leadership in IT in an effort to promote the adoption of EHRs and the development
of a NHII. With the exception of H.R. 2915, these measures also contained quality-
of-care provisions. They included devising standardized measures of physician
performance and using them as the basis of pay-for-performance initiatives. So far
in the 109th Congress, lawmakers have introduced two health IT bills. Representative
Gonzalez has introduced the National Health Information Incentive Act of 2005
(H.R. 747), and Senator Kennedy has reintroduced S. 2907 as Title II of the
Affordable Health Care Act (S. 16). Table 2, beginning on page 12, compares the
incentives in each of those health IT bills. Tables 3 and 4 provide more detailed
summaries of the major provisions in the patient safety and health IT bills introduced
in the 108th and 109th Congresses, respectively.



CRS-10
Table 1. Summary of Health Care Information Technology (IT) Provisions in the Medicare Modernization Act
(P.L. 108-173)
ectronic Prescription StandardsRequires the Secretary to develop standards for the electronic prescribing of newly covered drugs under Part D (to begin January 1, 2006).
ection 101)The standards must provide for the transmittal of information on eligibility and benefits (including formulary drugs), information on the
drug being prescribed and other drugs listed in the patient’s medication history (including drug-drug interactions), and information on the
availability of lower-cost, therapeutically appropriate alternative drugs. Additionally, the standards must accommodate the messaging of
information about appropriate prescribing of drugs to avoid adverse drug interactions and allow a beneficiary (consistent with their
prescription drug plan) to designate a particular pharmacy to dispense a prescribed drug. Finally, the program must provide for the
electronic transmittal of the patients medical history. Disclosure of information must meet the requirements of the HIPAA privacy rule
and, to the extent feasible, be on an interactive, real-time basis. Requires the Secretary to promulgate initial standards by September 1, 2005.
Prior to the promulgation of final standards, the Secretary must enter into voluntary agreements with physicians and pharmacies to conduct
a pilot project during 2006 to test the initial standards. The Secretary must then evaluate the pilot project and report to Congress not later
than April 1, 2007. Based on the evaluation and not later than April 1, 2008, the Secretary must promulgate final standards to take effect
iki/CRS-RL32858within one year. Also, requires the Secretary to establish a safe harbor from penalties under the anti-kickback statute (42 U.S.C.1320a–7b(b)) and an exception to Medicare limitations on physician self-referral (42 U.S.C. § 1395nn(e)) for the provision of hardware,
g/wsoftware, and other technology and training services used in electronic prescribing. That would allow, for example, a hospital to provide
s.orsuch technologies and services to its medical staff, and Medicare Advantage plans to provide such technologies and services to pharmacies
leakand prescribing health care providers. [Note: CMS, ahead of schedule, released its proposal for e-prescribing standards on January 27,
2005. The proposed rule was published in the Federal Register, February 4, 2005.]
://wiki
httpants to Physicians to ImplementAuthorizes the Secretary to make grants to physicians to help defray the costs of purchasing and installing computer systems (including
ectronic Prescription Programshandheld devices), upgrading existing systems, and providing education and training to staff on the use of technology to implement an
ection 108)electronic prescription program. Requires the Secretary to give preference to physicians who serve a disproportionately large Medicare
population, as well as physicians who serve rural or medically underserved areas. Requires grantees to provide a 50% matching contribution
to cover all the costs of implementing their electronic prescribing program. Authorizes $50 million for FY2007, and such sums as may be
necessary for FY2008 and FY2009.
edicare Care ManagementRequires the Secretary to establish a three-year demonstration program with physicians to meet the needs of beneficiaries through the
ance Demonstration adoption and use of health IT and evidence-based outcome measures to promote continuity of care, help stabilize medical conditions,
ection 649)prevent or minimize acute exacerbations of chronic conditions, and reduce adverse health outcomes. Authorizes four demonstration sites:
two urban, one rural, and one in a state that meets certain specifications (most likely Arkansas). Physicians must meet certain practice
standards, including the ability to establish and maintain health IT systems. Directs the Secretary to pay a per beneficiary amount to each
participating physician who meets or exceeds specific performance standards regarding clinical quality and outcomes.



CRS-11
nic Care Improvement UnderRequires the Secretary to develop, test, implement and evaluate a chronic care improvement program (CCIP) to improve the quality of care
edicare Fee-for-Service (Sectionfor beneficiaries living with chronic illnesses by helping them manage their conditions and encouraging better coordinated care. Instructs
the Secretary within 12 months to enter into initial three-year contracts with various chronic care improvement organizations, including
disease management organizations, health insurers, physician group practices and other entities the Secretary deems appropriate. Required
elements of a chronic care improvement plan include the use of monitoring technologies that enable patient guidance through the use of
decision support tools, and the development of a clinical information database to track and monitor each participant across settings and
evaluate outcomes. Requires independent evaluation of the initial contracts based on the following factors: quality improvement measures;
beneficiary and provider satisfaction; health outcomes; and financial outcomes (including cost savings). Subsequent to the evaluation, the
Secretary can expand the CCIP or choose to implement the program on a national basis. Expansion cannot begin earlier than two years after
the initial program is undertaken and not later than six months after the initial program is completed. Authorizes such sums as may be
necessary for the CCIP, not to exceed $100 million over three years. Information on the CCIP is available at
[ h t t p : / / www. c m s . h h s . g o v / m e d i c a r e r e f o r m/ c c i p ] .
mmission on SystemicRequires the Secretary to establish a Commission on Systemic Interoperability to develop a comprehensive strategy for the adoption and
teroperability (Section 1012)implementation of health care IT standards. Members of the Commission are to be appointed by the President, the Senate Majority and
iki/CRS-RL32858Minority Leaders, and the House Speaker and Minority Leader. In developing its strategy, the Commission must consider the costs andbenefits of the standards, the current demand on industry resources to implement these and other electronic standards, and the most cost-
g/weffective and efficient means of implementation. The Commission must report to the Secretary and Congress by October 31, 2005. The
s.orCommissions website is at [http://www.nlm.nih.gov/csi/csi_home.html].


leak
://wiki
http

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Table 2. Comparison of Bills to Encourage the Adoption of Health Information Technology (IT)
108th Congress
H.R. 4880 (Kennedy, P.)S. 2003 (Clinton)S. 2710 (Gregg)
deral coordinationRequires the Secretary to provide technicalEstablishes an HHS Office of NationalEstablishes an HHS Office of Health Information
dershipassistance on the creation of regional healthHealthcare Information Infrastructure to developTechnology to advise the Secretary, direct all IT
information infrastructures.a NHII strategic plan.activities within HHS, and implement a NHII
strategic plan.
eroperabilityDirects the Secretaries of HHS, DOD, and VA,Directs the Secretary to adopt national, voluntaryDirects the Office to adopt national, voluntary
ndardsbased on the recommendations of a workinghealth IT standards.health IT standards.
group, to adopt health IT standards.
ants, loans, andAuthorizes $55 million for FY2005, and $167Authorizes $20 million for each of FY2004 andAuthorizes $50 million each year for FY2005-
guaranteesmillion for each of FY2006-FY2008, for grantsFY2005 for grants to hospitals and otherFY2010 for grants to establish local health
iki/CRS-RL32858to establish regional health informationinfrastructures. Authorizes $400 million eachproviders to pay for health IT systems. Requires50% matching funds.information infrastructures and to purchase healthIT systems. Requires 20% matching funds.
g/wyear for FY2009-FY2013 to maintain/upgradeAuthorizes the same amount for loan guarantees for
s.orexisting networks and establish new ones.the same purposes.
leakAuthorizes loans to provide additional funding
://wikito grantees.
httpDirects the Secretary to adjust MedicareNo provisions.Requires a review of federal reimbursement for
bursementpayments to providers who use health IT and toproviders that utilize health IT systems.
provide matching Medicaid payments to states
that fund regional health IT networks.
surance mandatesNo provisions.No provisions.No provisions.
gal barriersCreates a safe harbor from penalties under theNo provisions.No provisions.
anti-kickback statute and an exception to
Medicare limitations on physician self-referral
for the provision of health IT equipment and
services.
earchNo provisions.Instructs AHRQ and NIH to conduct and supportNo provisions.


research on the use of IT in improving health
care.

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108th Congress109th Congress
S. 2421, Title I (Kennedy)H.R. 747 (Gonzalez, C.)S. 16, Title II (Kennedy)
deral coordinationNo provisions.Establishes an Office of the National CoordinatorEstablishes an Office of Health Information
dershipfor Health Information Technology within theTechnology within the Executive Office of the
Executive Office of the President to be headed byPresident to advise the President, direct all
a Director who reports directly to the President.health IT activities within the federal
government, and implement a NHII strategic
plan.
eroperabilityDirects the Secretary to adopt national health ITDirects the Secretary to adopt and test nationalDirects the Office to adopt national, voluntary
ndardsstandards.health IT standards.health IT standards.
ants, loans, and loanAuthorizes such sums as may be necessary forAuthorizes such sums as may be necessary forAuthorizes such sums as may be necessary for
aranteesgrants, loans, and loan guarantees to install andgrants and revolving loans for small health careFY2006-FY2011 for grants and loan
implement clinical IT systems that meet nationalproviders to acquire EHRs and other health IT.guarantees to establish local health
standards. Requires 10% matching funds forCreates a tax credit for physicians who acquireinformation infrastructures and to purchase
iki/CRS-RL32858grants to community health centers, and 20%EHRs and other health IT, equal to 10% of thehealth IT systems. Requires 20% matching
g/wmatching funds for grants to other non-profitamounts paid during the taxable year.funds for IT grants.
s.orhealth care facilities and for physician practices.
leakMandates increases in federal health programInstructs the Secretary to provide MedicareMandates recommendations and an
://wikibursementreimbursement for providers who implementclinical IT systems consistent with nationalpayment incentives to help small providers acquireEHRs and other health IT, such as add-onimplementation plan for changes to federalreimbursement and payment structure to
httpstandards and who carry out qualitypayments for office visits supported by health IT,promote the adoption of health IT.
improvement activities. Mandates decreases inand payments for e-mail consultations.
reimbursement for providers who fail to meet
those requirements.
surance mandatesRequires group health plans and insurers toNo provisions.No provisions.
implement computerized systems for claims
processing (with real-time detection of fraud and
abuse), and for making information about
benefits and claims available to patients
electronically. Requires the Secretary to
establish pay-for-performance standards and
provides for health care payers to increase
payments to providers that meet the standards.
gal barriersNo provisions.No provisions.No provisions.
earchNo provisions.No provisions.No provisions.



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Table 3. Summary of Health Information Technology (IT) Legislation Introduced in the 108th Congress
Bills passed by the House and Senate
ent safety: reportingH.R. 663 (Bilirakis) Patient Safety and Quality Improvement Act. On March 12, 2003, the House passed H.R. 663 (H.Rept. 108-28) on a vote
edical errorsof 418-6. H.R. 663 was intended to encourage the voluntary reporting and analysis of medical errors by protecting such information from legala
discovery and admission in civil and administrative proceedings, and from Freedom of Information Act (FOIA) requests. The bill would have
required the Agency for Healthcare Research and Quality (AHRQ) to certify patient safety organizations (PSOs) to collect and analyze information
reported by health care providers. PSOs would then develop and disseminate recommendations for systems-based solutions to improve patient
safety and health care quality. H.R. 663 also would have required AHRQ to develop voluntary national standards to promote the interoperability
of health IT systems. In addition, the bill would have authorized grants to physicians and hospitals for electronic prescribing and other information
technology to prevent errors. Finally, H.R. 663 would have created a Medical Information Technology Advisory Board to make recommendations
to HHS and Congress on fostering the development and use of health IT to reduce medical errors.
S. 720 (Jeffords) Patient Safety and Quality Improvement Act. On July 23, 2003, the Senate Health, Education, Labor, and Pensions (HELP)
Committee approved S. 720 (S.Rept. 108-196), which was broadly similar to the House measure. On July 22, 2004, the Senate took up H.R. 663,
struck the language approved by the House and substituted it with an amended version of S. 720, then passed the measure by unanimous consent.
iki/CRS-RL32858Unlike H.R. 663 as passed by the House, the Senate version did not include health IT grants or the establishment of a Medical Informationth
g/wTechnology Advisory Board. There was no further action on patient safety legislation in the 108 Congress. For more information, see CRS
s.orReport RL31983, Health Care Quality: Improving Patient Safety by Promoting Medical Errors Reporting.
leakIntroduced Bills (No legislative activity)
://wikiedicare IT grantsH.R. 3035 (Houghton), S. 1729 (Graham, B.) Medication Error Reduction Act. Authorizes grants to hospitals and Medicare nursing homes,
httpknown as skilled nursing facilities (SNFs), to purchase or improve computerized systems that help reduce medication errors, and to provide
education and training to staff on patient safety programs. The bill sets aside 20% of the funds for rural providers. Hospitals and SNFs whose
patient populations include a high percentage of Medicare, Medicaid, and SCHIP beneficiaries are to be given special consideration when awarding
grants. Grant awards may not exceed $750,000 for hospitals, and $200,000 for SNFs. Authorizes appropriations from the Medicare Part A Trust
Fund of $93 million per year for FY2004-FY2013 for making grants to hospitals, and $4.5 million per year over the same period for making grants
to SNFs.
tional Health InformationH.R. 2915 (Johnson, N.) National Health Information Infrastructure Act. Instructs the Secretary to appoint a National Health Information
frastructure (NHII),Officer for a five-year term to provide national leadership for the development of a NHII. Requires the Officer, within six months, to develop a
lth IT standardsNHII strategic plan, followed by an assessment of best practices in the development and purchase of medical IT, as well as recommendations for
health data standards to achieve interoperability of health IT systems. Directs the Secretary, based on those recommendations, to adopt voluntary,
national health data and communications standards.



CRS-15
th IT grants and loans,H.R. 4880 (Kennedy, P.) Quality, Efficiency, Standards, and Technology for Health Care Transformation Act. (1) Authorizes the Secretary
ndards, legal safe harbor,to award up to 20, four-yearPhase I grants to health information infrastructure organizations to develop and implement an interoperable health
edicare reimbursement,information network, based on a regional health IT plan approved by the Secretary. Authorizes the Secretary, after four years, to award Phase
edicaid federal match,II” grants to states that agree to fund such organizations to maintain and upgrade existing networks and develop new ones. Authorizes the
t-effectiveness research,Secretary, after four more years, to award “Phase III” maintenance grants to states in which at least 75% of health care providers are participating
tcomes and quality,in a network. Requires the Secretary to provide technical assistance on the creation of health information infrastructures and directs AHRQ to
anceestablish a national technical assistance center to help physicians (especially in small practices) adopt health IT and participate in regional networks.
Requires the Secretary to establish a program for certifying regional health information infrastructures. Authorizes $55 million in FY2005, and
$167 million for each of FY2006-FY2008 for Phase I grants; $400 million for each of FY2009-FY2013 for Phase II grants; and such sums as may
be necessary for FY2014 and each subsequent fiscal year for Phase III grants. (2) Directs the Secretaries of HHS, DOD, and the VA, within one
year and after considering the recommendations of a Working Group convened by the HHS Secretary, to adopt interoperability standards for health
IT systems. Specifies the membership of the Working Group and requires it to formulate recommendations on: components of electronic medical
records; clinical data exchange and terminologies; medical knowledge representation; computerized physician order entry; and privacy and security.
Authorizes $5 million for FY2005 and for FY2006, and $2 million for FY2007 and each subsequent fiscal year. (3) Authorizes the Secretary to
make loans to Phase I and Phase II grantees, with a repayment period of up to 10 years, to provide additional funding for activities covered under
the grants. (4) Creates a safe harbor from penalties under the anti-kickback statute (42 U.S.C. §1320a-7b(b)) for equipment and services provided
for developing or implementing a health information infrastructure under this Act, as long as the provision of such equipment and services is not
iki/CRS-RL32858based on the amount or value of business between the parties. (5) Creates an exception to Medicare limitations on physician self-referral (42 U.S.C.§ 1395nn(e)) for equipment and services provided for developing or implementing a health information infrastructure under this Act, as long as
g/wthe provision of such equipment and services is not based on the amount or value of business between the parties. (6) Instructs the Secretary to
s.ormake adjustments in Medicare payments to providers who participate in a certified health information infrastructure, or who use IT to improve
leakthe quality and accuracy of clinical decisions. (7) Instructs the Secretary to make matching Medicaid payments to states that provide funding for
://wikian approved regional health IT plan. Mandates a 90% federal match during the first three years of such state funding. (8) Amends Section 1013(“Outcomes Research”) of the Medicare Modernization Act (see Table 1) to include research on cost-effectiveness, and to require that AHRQ adopt
httpand implement the priorities established by the Consortium for Health Outcomes Research Priorities. Authorizes $150 million for FY2005, $250
million for FY2006, $400 million for FY2007, $750 million for FY2008, $1 billion for FY2009, and such sums as may be necessary for each fiscal
year thereafter. (9) Directs AHRQ and the Institute of Medicine (IOM) to establish a Consortium for Health Outcomes Research Priorities. (10)
Instructs AHRQ, in collaboration with the National Library of Medicine, to establish a Center for Clinical Decision-Support Technology to enable
health care providers more efficiently and rapidly to embed knowledge-based elements in their clinical information systems. Authorizes $2 million
for FY2005, and such sums as may be necessary for each fiscal year thereafter. (11) Instructs AHRQ to fund scholarships for study in health care
quality and patient safety. Authorizes $2 million for FY2005, and such sums as may be necessary for each fiscal year thereafter. (12) Requires
the Consortium, within one year, to identify priorities for developing, identifying, and endorsing standardized measures of health care provider
performance. Requires the Consortium to update the priorities annually and have them endorsed by the National Quality Forum (NQF).
(...continued)



CRS-16
(13) Requires the Secretary, within 18 months, to establish a claims-based practitioner performance database (to be discontinued after 10 years)
to receive de-identified Medicare claims data and de-identified claims data voluntarily submitted by group health plans (group health plans that
submit such data are granted access to all recent Medicare claims data submitted to HHS). Requires the Secretary annually to use the data in the
database to measure the performance of physicians and hospitals, based on NQF-endorsed performance measures. After four years, mandates that
all group health plans submit de-identified claims data to the database. (14) Requires the Secretary, within 18 months, to establish a clinical-based
practitioner performance database to receive de-identified data voluntarily submitted by providers. Requires the Secretary annually to use the data
in the database to measure the performance of physicians and hospitals, based on NQF-endorsed performance measures. (15) Requires the
Secretary to make publicly available the provider performance measurements prepared from both databases. (16) Authorizes the Secretary to use
the provider performance measurements to make pay-for-performance adjustments to Medicare payments. Directs the Medicare Payment Advisory
Commission to make annual recommendations on such pay-for-performance adjustments. (17) Directs AHRQ, within 54 months, to conduct a
study comparing the two practitioner performance databases and report to Congress.
II, standards, health ITS. 2003 (Clinton) Health Information for Quality Improvement Act. (1) Establishes an Office of National Healthcare Information
, chronic disease care,Infrastructure, headed by a Director who reports directly to the Secretary, to develop an NHII strategic plan in collaboration with various
ion drugstakeholders. (2) Instructs the Secretary within two years to adopt national, voluntary health data and communications standards to promote the
s, qualityinteroperability of health IT systems. (3) Authorizes AHRQ to award grants to hospitals and other providers to pay for health IT. Establishes
easures, pay-for-grantee reporting requirements and requires the Secretary to report to Congress on the grant program. Grantees must provide at least 50% matching
iki/CRS-RL32858ance, use of healthormation by providersfunds. Authorizes $20 million for FY2004 and for FY2005. (4) Instructs AHRQ and NIH to establish a Medical Systems Safety Initiative toconduct and support research on the use of IT in improving and advancing health care. Requires the National Committee for Vital and Health
g/wtientsStatistics to assist the Secretary in the development of authentication standards for health records. Requires the Secretaries of HHS, DOD, and
s.orVA to implement and evaluate methods that enable patients to access and append their electronic medical record. Directs AHRQ to award grants
leakfor research on innovative approaches to improve patients understanding of their electronic health record. Authorizes $5 million for such grants
for FY2004, and such sums as may be necessary for each fiscal year thereafter. (5) Prohibits group health plans and health insurers that offer
://wikicoverage in both the group and individual markets from discriminating against individuals that participate in approved clinical trials, and from
httpdenying or limiting the coverage of routine patient costs for items and services furnished in connection with participation in such trials. (6) Directs
AHRQ to award grants for research on primary care for older patients with multiple chronic conditions. Authorizes $10 million for FY2004, and
such sums as may be necessary for each fiscal year thereafter. (7) Directs NIH, in coordination with AHRQ and FDA, to conduct research on the
effectiveness of certain prescription drugs and provide a progress report to the President and Congress every two years. Authorizes $75 million
for FY2004, and such sums as may be necessary for each fiscal year thereafter. (8) Requires AHRQ, in consultation with various specifiedb
stakeholders, to evaluate and update quality indicators for each of the IOM’s 20 priority areas for improvement in health care quality. Authorizes
$12 million for FY2004, and $8 million for each fiscal year thereafter through FY2009. (9) Requires CDC and AHRQ jointly to award
demonstration grants for the reporting of health care quality information at the community level. Authorizes $25 million for FY2004, and such
sums as may be necessary for each fiscal year thereafter. (10) Requires AHRQ to conduct demonstration programs for the collection of reliable
data on patient race, ethnicity, and linguistic preferences. Authorizes $5 million for FY2004 and for FY2005. (11) Mandates an IOM study on
developing and disseminating evidence-based practice guidelines for health care. (12) Mandates an IOM study on performance-based payment
incentives, including payment under Medicare. (13) Requires AHRQ to support research and demonstration programs on using community-based
and voluntary public and private organizations to disseminate information about health care quality to consumers. Authorizes $4 million in
FY2004, and $2 million for each fiscal year thereafter. (14) Requires AHRQ to award grants for research to promote patient engagement in their
care.



CRS-17
alth IT standards andS. 2421 (Kennedy) Health Care Modernization, Cost Reduction, and Quality Improvement Act. (1) Authorizes grants, loans, and loan
ants, reimbursementguarantees for federally qualified health centers, hospitals, SNFs, group practices and other nonprofit health facilities to install and implement
centives, pay-for-clinical IT systems that meet national interoperability and security standards. Matching funds are required to receive a grant: 10% for community
ance standards,health care centers; and 20% for other non-profit health care facilities and for group practices. Requires the Secretary, in consultation with various
tional quality advisorystakeholders, to develop or adopt national standards by January 1, 2006. Requires the Secretary by January 1, 2007, and annually thereafter, to
ease-specificreview and consider modification of the standards. Authorizes such sums as may be necessary. (2) Mandates increases in federal health program
t programs, preventivereimbursement for providers who implement clinical IT systems consistent with the national standards, and who carry out quality improvement
lthactivities as defined in the Act. Increases begin in 2005 and are equal to 1% of reimbursement, decreasing to 0.2% of reimbursement in 2009.
Mandates decreases in federal health program reimbursement for larger providers who fail to implement clinical IT systems and carry out such
quality improvement activities. Decreases begin in 2010 and are equal to 0.2% of reimbursement, increasing to 1% of reimbursement in 2014.
(3) Requires group health plans and health insurers that offer coverage in both the group and individual markets, by December 31, 2008, to
implement computerized claims processing systems (with an accuracy of at least 99% and the ability in real time to detect fraud and abuse).
Requires group health plans and insurers, by December 31, 2008, to adopt a computerized system that, among other things, provides consumers
with information about their account and permits them to make deductible and cost-sharing payments electronically, and enables providers to
receive claims payments electronically. (4) Requires the Secretary, within two years and in consultation with the National Quality Advisory
Council (see below) and others, to establish quality standards for reimbursing health care providers (i.e., pay-for-performance standards). Requires
payers to increase payments to providers who attain the quality standards, and permits payers to reduce reimbursement to providers who fail to
iki/CRS-RL32858meet the standards. If a provider believes it can provide higher quality care at lower cost but that doing so would reduce the amount ofreimbursement that would otherwise be available to the provider, the payer involved is required to enter into good faith negotiations with the
g/wprovider to reach agreement on an alternative payment system. (5) Authorizes CDC to award grants to states to implement a comprehensive plan
s.orfor diabetes control and prevention. Authorizes CDC, in collaboration with AHRQ, to award grants to states to apply evidence-based best practices
leak(identified by the Secretary) for diabetes care and prevention. Authorizes $50 million for FY2005, and such sums as may be necessary for FY2006-
://wikiFY2009. Authorizes $15 million for FY2005, and such sums as may be necessary for FY2006-FY2009, to fund a national diabetes educationprogram. (6) Authorizes such sums as may be necessary for FY2005-FY2009 to fund grants to states to implement a comprehensive arthritis
httpcontrol and prevention plan. Authorizes such sums as may be necessary for FY2005-FY2009 to fund grants to national public or private nonprofit
entities to help implement a national arthritis control and prevention strategy. Authorizes such sums as may be necessary for the Secretary to
implement a national arthritis education program. (7) Authorizes such sums as may be necessary for FY2005- FY2009 to fund grants to states
to implement stroke care systems that provide high-quality prevention, diagnosis, treatment, and rehabilitation. (8) Authorizes grants and other
programs to improve access to and the provision of culturally and linguistically appropriate care for patients whose primary language is not English.
Requires the Secretary to provide additional Medicare payments for such culturally and linguistically appropriate services. Requires Medicaid
and SCHIP programs to cover 90% of the costs of providing those services. (9) Establishes a 15-member National Quality Advisory Council,
appointed by GAO, to identify national aims and objectives for health care quality improvement and make recommendations to Congress and the
public. (10) Requires group health plans and health insurers that offer coverage in both the group and individual markets to cover preventive health
care items and services, as recommended by the U.S. Preventive Services Task Force. (11) Authorizes such sums as may be necessary for FY2005-
FY2010 to carry out various programs to (i) encourage health diets, and (ii) increase physical activity in schools, worksites, and communities.
(12) Authorizes such sums as may be necessary for FY2005-FY2009 to carry out various programs to improve immunization rates for adults and
adolescents. (13) Authorizes such sums as may be necessary for FY2005-FY2009 to carry out various programs to raise public awareness about
oral health and to improve the delivery and quality of oral health among adults, including those with intellectual disabilities or chronic disease.



CRS-18
II, standards, health ITS. 2710 (Gregg) National Health Information Technology Adoption Act. (1) Establishes within HHS an Office of Health Information
ts and loan guarantees,Technology to: advise the Secretary on health IT; direct all health IT activity within the Department; work with public and private health IT
ality measuresstakeholders to implement a strategic plan for establishing a NHII; and ensure that health IT is utilized in health surveillance. Instructs the
Secretary to appoint a Director to head the Office. Directs the Office to encourage the development and adoption of health IT standards and work
with the private sector to collect and disseminate best health IT practices. Directs the Office to coordinate with AHRQ and other federal agencies
to evaluate the costs and benefits of health IT, including its impact on the quality and efficiency of patient care, and review federal reimbursement
for health care providers that utilize health IT systems. (2) Requires the Director, within two years and in collaboration with private sector
stakeholders, to adopt national standards to enable health IT to be used in clinical settings, to promote the interoperability of clinical information
across health care settings, and to facilitate the use of clinical decision support. Adoption of such standards by the private sector would be
voluntary. Beginning five years after enactment, prohibits the Secretary from purchasing a health IT system that is not in compliance with the
standards and requires recipients of federal health IT funds to purchase systems that are compliant with the standards. (3) Provides federal loan
guarantees: (i) to enable networks of physicians, hospitals, and group health plans and other insurers to develop local health information
infrastructures (LHII) for sharing data; and (ii) to enable health care providers that work with low-income and underserved populations to purchase
health IT systems capable of linking to an LHII. Authorizes $50 million for each of FY2005-FY2010. No principal of a loan guarantee may
exceed $5 million, and in any given 12-month period no amount disbursed to an eligible entity may exceed $5 million. (4) Authorizes grants: (i)
to networks of physicians, hospitals, and group health plans and other insurers to develop LHIIs for sharing data; and (ii) to health care providers
that work with low-income and underserved populations to purchase health IT systems capable of linking to a LHII. Requires grantees to provide
iki/CRS-RL32858matching funds to cover at least 20% of the costs of the IT project for which the grant was awarded. Authorizes $50 million for each of FY2005-FY2010. (5) Requires entities that receive a grant or loan guarantee to submit an annual report to the Director describing the financial costs and
g/wbenefits of the project and its impact on health care quality and safety. Permits the Director to give preference in awarding grants and loan
s.orguarantees to entities that agree to submit reports electronically on a daily basis. (6) Requires the Secretaries of HHS, Defense, and VA, by January
leak1, 2009, to develop uniform health care quality measures for a total of 15 common health conditions and to establish requirements for federally
://wikisupported health care delivery programs to report those quality measures. Requires the Secretaries to provide for the pooling, analysis, anddissemination of reported quality data. Requires the HHS Secretary to provide a progress report to Congress within two years. Following
httpsubmission of the report to Congress, requires the Secretary within three years to publish final regulations on reporting uniform health care quality
measures. (7) Requires the Secretary to ensure that demographic data collected under Medicare are accurate and available for inclusion in thec
National Health Disparities Report, and to promote and enforce state demographic data collection and reporting requirements under Medicaidc


and SCHIP and ensure that those data are also available for inclusion in the National Health Disparities Report.

CRS-19
II, standards, health ITS. 2907 (Dodd) Information Technology for Health Care Quality Act. (1) Establishes within the Executive Office of the President an Office
ts and loan guarantees, of Health Information Technology to: develop a national strategy for creating a NHII; advise the President on health IT; direct all health IT activity
ality measureswithin the federal government; work with public and private health IT stakeholders to implement the national strategy; and ensure that health IT
is utilized in health surveillance. Instructs the President to appoint a Director to head the Office. Requires federal agencies to seek Office approval
in order to adopt significant new health IT policies. Directs the Office to encourage the development and adoption of health IT standards and work
with the private sector to collect and disseminate best health IT practices. Directs the Office to coordinate with AHRQ and other federal agencies
to evaluate the costs and benefits of health IT, including its impact on the quality and efficiency of patient care, and review federal reimbursement
for health care providers that utilize health IT systems. Requires the Director within six months to make recommendations to the President and
the Secretary on changes to federal reimbursement and payment structures to encourage the adoption of health IT. Requires the Secretary, within
90 days of receiving the recommendations, to provide Congress with an implementation plan. (2) Requires the Director, within two years and in
collaboration with private sector stakeholders, to adopt national standards to enable health IT to be used in clinical settings, to promote the
interoperability of clinical information across health care settings, and to facilitate the use of clinical decision support. Adoption of such standards
by the private sector would be voluntary. Beginning one year after standards are adopted, prohibits the Secretary from purchasing a health IT
system that is not in compliance with the standards and requires recipients of federal health IT funds to purchase systems that are compliant with
the standards. (3) Provides federal loan guarantees: (i) to enable networks of physicians, hospitals, and group health plans and other insurers to
develop local health information infrastructures (LHII) for sharing data; and (ii) to enable health care providers to purchase health IT systems
capable of linking to a LHII. Instructs the Director to give special consideration to applicants serving low-income and underserved populations.
iki/CRS-RL32858Authorizes $250 million for each of FY2005-FY2010. No principal of a loan guarantee may exceed $5 million, and in any given 12-month periodno amount disbursed to an eligible entity may exceed $5 million. (4) Authorizes grants: (i) to networks of physicians, hospitals, and group health
g/wplans and other insurers to develop LHIIs for sharing data; and (ii) to health care providers that work with low-income and underserved populations
s.orto purchase health IT systems capable of linking to a LHII. Requires grantees to provide matching funds to cover at least 20% of the costs of the
leakIT project for which the grant was awarded. Authorizes $250 million for each of FY2005-FY2010. (5) Requires entities that receive a grant or
://wikiloan guarantee to submit regular reports to the Director describing the financial costs and benefits of the project and its impact on health care qualityand safety. (6) Within 18 months, requires the Secretaries of HHS, Defense, and the VA, in collaboration with other specified groups, to develop
httpuniform health care quality measures for each of the IOM’s 20 priority areas for improvement in health care quality,b and to establish requirements
for federally supported health care delivery programs to report those quality measures. Mandates full implementation of all quality measures and
reporting systems within one year of their development. Requires the Secretaries to provide for the pooling, analysis, and dissemination of reported
quality data. Requires the HHS Secretary to evaluate the development and reporting of quality measures and report to Congress within one year.
Following submission of the report to Congress, requires the Secretary within one year to publish final regulations on reporting uniform health
care quality measures.
. 663 was reported (as amended) by the Energy and Commerce Committee on Mar. 6, 2003. The Ways and Means Committee approved similar legislation (H.R. 877, H.Rept.
108-31) on Mar. 11, 2003. While the Ways and Means bill would amend the Medicare statute and apply only to hospitals and other health care facilities and their employees
that provide health care services under Medicare Part A, the Energy and Commerce measure would amend the Public Health Service (PHS) Act and have broader coverage. H.R.
663 would apply to any individual or entity licensed to provide health care services. Following negotiations between members of both panels, it was agreed that the new law
should be written into the PHS Act and that the Energy and Commerce bill (H.R. 633) would be brought to the floor for consideration by the full House.
stitute of Medicine, Priority Areas for National Action: Transforming Health Care Quality (Washington: National Academy Press, 2003).
.L. 106-129, the Healthcare Research and Quality Act of 1999, directed AHRQ to submit to Congress annually a report ondisparities in health care delivery as it relates to racial
factors and socioeconomic factors in priority populations,” beginning in FY2003. The first National Report on Healthcare Disparities was released on Dec. 22. 2003, and is
available online at [http://qualitytools.ahrq.gov/disparitiesReport/download_report.aspx].



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Table 4. Summary of Health Information Technology (IT) Legislation Introduced in the 109th Congress
Bills approved by Committee
ent Safety: reportingS. 544 (Jeffords) Patient Safety and Quality Improvement Act. On March 9, 2005, the Senate Health, Education, Labor, and Pensions (HELP)
edical errorsCommittee approved S. 544, which is identical to last year’s Senate-passed measure (S. 720). S. 544 is intended to encourage the reporting and
analysis of information on medical errors by designating such information as confidential and protecting it from legal discovery and admission
in civil, administrative, and criminal proceedings (unless a judge determined that the information contained evidence of a wanton and criminal
act to directly harm the patient) and from Freedom of Information Act (FOIA) requests. Information on medical errors would be reported to Patient
Safety Organizations (PSOs), which would analyze the information and develop and disseminate recommendations for systems-based solutions
to improve patient safety and health care quality. S. 544 also would require the Agency for Healthcare Research and Quality (AHRQ) to adopt
voluntary national interoperability standards. For more information, see CRS Report RL31983, Health Care Quality: Improving Patient Safety
by Promoting Medical Errors Reporting.
Introduced bills (No legislative activity)
II, standards, MedicareH.R. 747 (Gonzalez ) National Health Information Incentive Act of 2005. (1) Establishes within the Executive Office of the President an Office
iki/CRS-RL32858bursement, health ITts and loansof the National Coordinator for Health Information Technology (ONCHIT), headed by a Director who responds directly to the President. (2)Within two years, requires the Secretary, through ONCHIT and in collaboration with the Commission on Systemic Interoperability, to adopt trial
g/wIT standards developed by accredited standard setting organizations to support the creation of an NHII. Requires the Secretary to consult with
s.ornational organizations representing all the major stakeholders and rely on the recommendations of the National Committee on Vital and Health
leakStatistics. Standards must be consistent with the HIPAA privacy and security rule and must not impose an undue administrative and financial
burden on medical practice, particularly small physician and rural practices. Requires the Secretary to conduct a two-year pilot program at facilities
://wikithroughout the country to test the effectiveness and impact of the trial standards. Within one year of completing the pilot program, requires the
httpSecretary to assess the program and report to Congress. Authorizes the Secretary to modify the standards as appropriate. Requires individuals
and entities that use EHRs and health IT to comply with the modified standards not later than two years after they are adopted. Small health plans
and small providers of services (i.e., fewer than 25 full-time equivalent employees) have an additional year to comply. (3) Instructs the Secretary
to provide Medicare payment incentives to help small providers acquire EHRs and other health IT, such as add-on payments for office visits
supported by health IT, and payments for e-mail consultations. Exempts incentive payments from budget neutrality under the physician fee
schedule. (4) Authorizes grants and revolving loans for small health care providers to acquire EHRs and other health IT. Authorizes such sums
as may be necessary for such grants and loans. (5) Creates a tax credit for physicians who acquire EHRs and other health IT, equal to 10% of the
amounts paid during the taxable year.



CRS-21
II, standards, health ITS. 16 (Kennedy) Affordable Health Care Act. (1) Establishes within the Executive Office of the President an Office of Health Information
ts and loan guarantees,Technology to: develop a national strategy for creating a NHII; advise the President on health IT; direct all health IT activity within the federal
ality measuresgovernment; work with public and private health IT stakeholders to implement the national strategy; and ensure that health IT is utilized in health
surveillance. Instructs the President to appoint a Director to head the Office. Requires federal agencies to seek Office approval in order to adopt
significant new health IT policies. Directs the Office to encourage the development and adoption of health IT standards and work with the private
sector to collect and disseminate best health IT practices. Directs the Office to coordinate with AHRQ and other federal agencies to evaluate the
costs and benefits of health IT, including its impact on the quality and efficiency of patient care, and review federal reimbursement for health care
providers that utilize health IT systems. Requires the Director within six months to make recommendations to the President and the Secretary on
changes to federal reimbursement and payment structures to encourage the adoption of health IT. Requires the Secretary, within 90 days of
receiving the recommendations, to provide Congress with an implementation plan. (2) Requires the Director, within two years and in collaboration
with private sector stakeholders, to adopt national standards to enable health IT to be used in clinical settings, to promote the interoperability of
clinical information across health care settings, and to facilitate the use of clinical decision support. Adoption of such standards by the private
sector would be voluntary. Beginning one year after standards are adopted, prohibits the Secretary from purchasing a health IT system that is not
in compliance with the standards and requires recipients of federal health IT funds to purchase systems that are compliant with the standards. (3)
Provides federal loan guarantees: (i) to enable networks of physicians, hospitals, and group health plans and other insurers to develop local health
information infrastructures (LHII) for sharing data; and (ii) to enable health care providers to purchase health IT systems capable of linking to a
LHII. Instructs the Director to give special consideration to applicants serving low-income and underserved populations. Authorizes such sums
iki/CRS-RL32858as may be necessary for each of FY2006-FY2011. No principal of a loan guarantee may exceed $5 million, and in any given 12-month periodno amount disbursed to an eligible entity may exceed $5 million. (4) Authorizes grants: (i) to networks of physicians, hospitals, and group health
g/wplans and other insurers to develop LHIIs for sharing data; and (ii) to health care providers that work with low-income and underserved populations
s.orto purchase health IT systems capable of linking to a LHII. Requires grantees to provide matching funds to cover at least 20% of the costs of the
leakIT project for which the grant was awarded. Authorizes such sums as may be necessary for each of FY2006-FY2011. (5) Requires entities that
://wikireceive a grant or loan guarantee to submit regular reports to the Director describing the financial costs and benefits of the project and its impacton health care quality and safety. (6) Within 18 months, requires the Secretaries of HHS, Defense, and the VA, in collaboration with other
httpspecified groups, to develop uniform health care quality measures for each of the IOM’s 20 priority areas for improvement in health care quality,a
and to establish requirements for federally supported health care delivery programs to report those quality measures. Mandates full implementation
of all quality measures and reporting systems within one year of their development. Requires the Secretaries to provide for the pooling, analysis,
and dissemination of reported quality data. Requires the HHS Secretary to evaluate the development and reporting of quality measures and report
to Congress within one year. Following submission of the report to Congress, requires the Secretary within one year to publish final regulations
on reporting uniform health care quality measures.
stitute of Medicine, Priority Areas for National Action: Transforming Health Care Quality (Washington: National Academy Press, 2003).



Appendix A
Congressional Hearings (2002–2005)
House Committee on Energy and Commerce
May 8, 2002Reducing Medical Errors
July 22, 2004Health Information Technology
(Subcommittee on Health)
House Committee on Government Reform (Subcommittee on Technology)
July 14, 2004Health Informatics, Public Health, and
Emergency Response
House Committee on Veterans’ Affairs (Subcommittee on Oversight)
May 19, 2004VA’s Role in Developing Electronic
Medical Records
House Committee on Ways and Means (Subcommittee on Health)
March 7, 2002Health Quality and Medical Errors
September 10, 2002Legislation to Reduce Medical Errors
March 18, 2004Health Care Quality
June 17, 2004Health Information Technology
July 22, 2004Electronic Prescribing
February 10, 2005Medicare Payments to Physicians
March 15, 2005Measuring Physician Quality and
Efficiency
Senate Committee on Homeland Security and Governmental Affairs
June 11, 2003Patient Safety: Instilling Hospitals
with a Culture of Continuous
Improvement
Senate Special Committee on Aging
September 23, 2003HIPAA Medical Privacy and
Transactions Rules: Overkill or
Overdue?



GAO Reports and Testimony (2003–2005)
Information Technology: Benefits Realized for Selected Health Care Functions,
GAO-04-224, October 31, 2003.
Computer-Based Patient Records: Improved Planning and Project Management
are Critical to Achieving Two-Way VA-DOD Health Data Exchange, GAO-04-

811T, May 19, 2004.


Health Care: National Strategy Needed to Accelerate the Implementation of
Health Information Technology, GAO-04-947T, July 14, 2004.
HHS’s Efforts to Promote Health Information Technology and Legal Barriers to
its Adoption, GAO-04-991R, August 13. 2004.
HHS’s Estimate of Health Care Cost Savings Resulting for the Use of Information
Technology, GAO-05-309R, February 16, 2005.
Internet Resources
Federal Government
HHS — Nat. Coordinator for Health IT[http://www.hhs.gov/healthit]
HHS — Nat. Committee on Vital and[http://www.ncvhs.hhs.gov]
Health Statistics
AHRQ — Healthcare Informatics[http://www.ahrq.gov/data/infoix.htm]
CDC — Public Health Informatics[http://www.cdc.gov/epo/dphsi/index.htm]
Professional Associations
American Academy of Family[http://www.centerforhit.org]
Physicians
American Health Information[http://www.ahima.org]
Management Association
American Medical Informatics[http://www.amia.org]
Association
Association of Medical Directors of[http://www.amdis.org]
Information Technology
Healthcare Information and[http://www.himss.org]
Management Systems Society
Public-Private Collaboratives/Research Groups/Stakeholders
eHealth Initiative[http://www.ehealthinitiative.org]
Markle Foundation[http://www.markle.org]
Connecting for Health[http://www.connectingforhealth.org]



Center for Information Technology[http://www.citl.org]
Leadership
National Alliance for Health[http://www.nahit.org]
Information Technology
National Alliance for Primary Care[http://www.napci.org]
Informatics