Medicare Compliance & Reimbursement

Industry Note:

EHR Incentive Payments Are Valuable -- But Not This Valuable

Medical practices and facilities that used electronic health records (EHRs) anxiously awaited their incentive payments for adopting the new technology, but some hospitals collected way too much in bonus payments. That’s the word from a HHS Office of the Inspector-General (OIG) report that shines a light on what happens when a payer miscalculates the incentive formula.

In the OIG report, Texas Made Incorrect Medicaid Electronic Health Record Incentive Payments, the agency says that Texas Medicaid overpaid 26 hospitals almost $14 million and underpaid another 12 facilities $1.4 million. Even worse, because the hospital calculation is computed just once and then paid over three years, the OIG projects that all future payments will be incorrect as well. After extrapolating the results out to all Texas hospitals, the OIG calculated that over $12 million was overpaid to facilities in the state.

Texas officials will soon begin recouping the $12.5 million in EHR incentive overpayments from the hospitals in question, and will refund it to the government. In addition, the state will address the technical issues that created the overpayments.

To read more about the overpayments, visit http://oig.hhs.gov/oas/reports/region6/61300047.pdf.