MedeAnalytics Details Financial Downside Risk of Meaningful Use

March 31, 2010

EMERYVILLE, Calif., March 30, 2010 – MedeAnalytics, a leading provider of healthcare performance management solutions, today released a white paper on one of the HITECH Act’s measures designed to motivate hospitals to become meaningful users of electronic health records (EHRs): potential negative adjustments to Medicare’s market basket updates to the Inpatient Prospective Payment System (IPPS).

“Much has been written about the economic ‘carrots’ of meaningful use—the incentive payments for which hospitals may be eligible, beginning this fall,” said Ken Perez, senior vice president of marketing for MedeAnalytics. “Far less attention has been placed on the economic ‘sticks’—the potential reductions to the annual updates to the IPPS—which are the focus of this white paper and are just as significant.”

The proposed rule on the EHR incentive program requires hospitals to report quality measures to Medicare and be meaningful users of EHRs. Starting in 2015, failure to meet these criteria would result in reductions to the market basket update. Since Medicare accounts for a large share of most hospitals’ revenues, the potential negative adjustments constitute a major downside risk.

The complimentary white paper is available for download at the MedeAnalytics Meaningful Use Resource Center.