Medicare Is Faulted on Shift to Electronic Records

By REED ABELSON
November 29, 2012

The conversion to electronic medical records - a critical piece of 
the Obama administration's plan for health care reform - is 
"vulnerable" to fraud and abuse because of the failure of Medicare 
officials to develop appropriate safeguards, according to a sharply 
critical report to be issued Thursday by federal investigators.

The use of electronic medical records has been central to the aim of 
overhauling health care in America. Advocates contend that electronic 
records systems will improve patient care and lower costs through 
better coordination of medical services, and the Obama administration 
is spending billions of dollars to encourage doctors and hospitals to 
switch to electronic records to track patient care.

But the report says Medicare, which is charged with managing the 
incentive program that encourages the adoption of electronic records, 
has failed to put in place adequate safeguards to ensure that 
information being provided by hospitals and doctors about their 
electronic records systems is accurate. To qualify for the incentive 
payments, doctors and hospitals must demonstrate that the systems 
lead to better patient care, meeting a so-called meaningful use 
standard by, for example, checking for harmful drug interactions.

Medicare "faces obstacles" in overseeing the electronic records 
incentive program "that leave the program vulnerable to paying 
incentives to professionals and hospitals that do not fully meet the 
meaningful use requirements," the investigators concluded. The report 
was prepared by the Office of Inspector General for the Department of 
Health and Human Services, which oversees Medicare.

The investigators contrasted the looser management of the incentive 
program with the agency's pledge to more closely monitor Medicare 
payments of medical claims. Medicare officials have indicated that 
the agency intends to move away from a "pay and chase" model, in 
which it tried to get back any money it has paid in error, to one in 
which it focuses on trying to avoid making unjustified payments in 
the first place.

...

http://www.nytimes.com/2012/11/29/business/medicare-is-faulted-in-electronic-medical-records-conversion.html

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