Funding Shortages Prevent Health Care IT From Adopting HIEs

Health care IT managers want to adopt health information exchanges (HIEs), but a lack of capital may hold them back, according to a new survey by health care management consulting firm Beacon Partners.

HIEs allow hospitals, laboratories, pharmacies and physicians to share electronic health records (EHRs) across a region, community or health system.

More than 200 C-suite health care executives responded to the study, with at least 58 percent from community hospitals. About 15 percent of respondents were from academic medical centers.

Beacon Partners announced the results of the study, called "Health Information Exchange Study: Assessing the Interest and Value in HIE Participation," on Jan. 19.

Despite high startup costs and insufficient capital, 70 percent of health care executives surveyed are planning for an HIE.

"The intent is all there," Kevin Burchill, director at Beacon Partners, told eWEEK. "The question from an ongoing standpoint is what happens when the money dries up." 

When member organizations run low on funds, they must call on other hospitals, local physician practices and nursing homes in an HIE to contribute resources for the platforms, said Burchill.

In addition, 66 percent of respondents believe HIEs would be positive for their organization, and 42 percent see HIEs as beneficial to patient outcomes. Reducing medical errors was a key reason for implementing HIEs, according to respondents.

Of respondents surveyed, 38 percent have formed annual budgets for HIEs of less than $1 million and 21 percent lack a budget altogether for HIEs.

While the Obama administration has agreed to reimburse hospital for the cost of implementing EHR programs if they meet meaningful use criteria, HIEs generally fall lower on the priority list for funding, Burchill, noted.

Although HIEs do get grant money from the federal government or private corporations, once those initials funds run out, it’s up to the hospitals to find the funds to keep health exchange platforms in operation.

"When you get past the seed money, those resources go back to organizations governing the health information exchange," said Burchill. However, larger hospitals tend to have more funds and the IT expertise to take on HIEs, Burchill noted.

Hospitals and doctors’ offices are prioritizing their funds to cover routine medical needs first, said Burchill.

Meanwhile, about half of the survey respondents don’t have an executive to run an HIE.

Many states are funding HIEs that will have common data standards, but local proprietary data platforms also exist. Sharing of data among doctors and specialists could increase continuity of care.

To read the original eWeek article, click here: Health Care IT Managers Want to Adopt HIEs, but Lack of Funds Stymies Them