§1167.2. Legislative findings; purpose
The legislature finds that:
(1)Through the state's health care reform efforts, it has been recognized that Health
Information Technology (HIT) and Health Information Exchange (HIE) are critical to
improving and evaluating the quality of health care delivered to the citizens of Louisiana
across the full spectrum of service delivery. The state has made significant investments in
HIT that should be leveraged and built upon while continuing to address the low adoption
rate of HIT by providers statewide.
(2)The state and federal governments have recognized that the use of an
interoperable electronic health record (EHR) is the foundation of HIT adoption and can
improve outcomes and reduce costs.
(3)In February of 2009, the United States Congress, in enac
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§1167.2. Legislative findings; purpose
The legislature finds that:
(1) Through the state's health care reform efforts, it has been recognized that Health
Information Technology (HIT) and Health Information Exchange (HIE) are critical to
improving and evaluating the quality of health care delivered to the citizens of Louisiana
across the full spectrum of service delivery. The state has made significant investments in
HIT that should be leveraged and built upon while continuing to address the low adoption
rate of HIT by providers statewide.
(2) The state and federal governments have recognized that the use of an
interoperable electronic health record (EHR) is the foundation of HIT adoption and can
improve outcomes and reduce costs.
(3) In February of 2009, the United States Congress, in enacting the American
Recovery and Reinvestment Act of 2009 (ARRA), made a substantial financial commitment
to the national expansion of HIT by providing approximately seventeen billion dollars in
funding for enhanced Medicare and Medicaid reimbursements to certain providers who
demonstrate meaningful use of certified EHR technology, as well as an additional two billion
dollars for competitive grants to the states to create regional infrastructure and to provide
loans to providers for the purchase and implementation of an EHR.
(4) Under ARRA, many of Louisiana's providers will become eligible for enhanced
Medicare reimbursement in the federal fiscal year beginning October 1, 2010, by becoming
a meaningful user of certified EHR technology and will suffer financial consequences for
failing to do so in the federal fiscal year beginning October 1, 2014. Additionally, enhanced
Medicaid reimbursement will be available to certain providers who are engaged in efforts to
adopt, implement, or upgrade certified EHR technology or who are meaningful users of such
technology, beginning on a date that has not yet been specified by the federal government.
(5) The ARRA's loan program competitive grant provisions are designed to facilitate
the widespread adoption of certified EHR technology, thus achieving provider eligibility for
the enhanced Medicare and Medicaid reimbursements. The application process requires that
the state develop and submit a strategic plan that will be annually updated, and that must
include a list of the projects to be assisted through the program, a description of the criteria
and methods established for the distribution of funds, the financial status of the loan fund as
of the date of submission of the plan and the short-term and long-term goals of the program.
(6) In 2007, the state authorized the secretary to enter into a Cooperative Endeavor
Agreement ("CEA") with the Rural Hospital Coalition, Inc. (the "Coalition"), for the
establishment of the Louisiana Rural Health Information Exchange (LARHIX), a
multi-regional health care information exchange. With the funding provided, seven rural
hospitals acquired EHR technology and were linked to Louisiana State University Health
Sciences Center - Shreveport (LSUHSC-S) via a state-of-the-art integration engine,
permitting a panel of specialists to access a rural patient's medical record in real time while
consulting with the patient over the telehealth equipment located at the rural hospital. In
2008, the state entered into a five-year CEA with the Coalition and provided funding to
expand the network to seven additional rural hospitals. LARHIX has been honored as a
network model with multiple award nominations by national technology organizations.
(7) The state is required to meet federal match requirements to secure funding under
the ARRA loan program provisions. Once such funding is secured, the state can establish
the loan program and thereby make application for ARRA program funds. When
established, the loan program will facilitate the expansion of current efforts, including
LARHIX, to assist providers in acquiring certified EHR technology. By enacting this
legislation, the legislature is providing the department and the secretary with specific
authority to facilitate the state's application for ARRA loan program funding and to
administer the state's EHR loan program.