CHA News Article

Sequester Cuts to Affect Medicare EHR Incentives

The 2 percent reductions to Medicare payments set to begin April 1 as part of the sequester cuts will affect incentive payments for the federal electronic health record (EHR) program. Medicaid (Medi-Cal) EHR incentive payments will not be affected. Established by the American Recovery and Reinvestment Act in 2009, the EHR program provides financial incentives to eligible professionals, hospitals and critical access hospitals that adopt or use certified EHR technology in ways that improve patient care. According to Modern Healthcare, about 181 hospitals are listed as “Medicare only” EHR providers by the Centers for Medicare & Medicaid Services. Those hospitals have received an average of $1.87 million each, which translates to an average reduction of about $37,500 for each Medicare-only EHR hospital from the sequester cuts. To read the complete Modern Healthcare article, visit