Physicians Can Receive Federal Incentives for Switching To Electronic Medical Records

Beginning next year, physicians will be eligible for extra payments from federal health insurance programs upon implementing an electronic medical record system. The enhanced reimbursements were made possible by the federal stimulus bill signed into law last year by President Barack Obama.

Under terms of the federal legislation, physicians can receive more than $40,000 in Medicare payments over five years beginning in 2011 for implementing an electronic health record system. The Obama administration last week announced it was seeking public comment on new regulations officials say "lay a foundation for improving quality, efficiency and safety through meaningful use of certified electronic health record technology."

Obama officials and consumer groups say electronic medical record systems are critical to eliminating paperwork, reducing costs and creating a more efficient health care delivery system. Doctor groups have said one of the obstacles slowing the implementation of electronic records has been cost.

Though 3 out of 4 Americans receive their medical care from doctors in small practices, less than 15 percent of the physician groups are using an electronic record system, according to a 2008 New England Journal of Medicine article.

Doctors soon may have fewer excuses for not getting their offices equipped with electronic medical records.