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Electronic Medical Records

By Barry B. Cepelewicz and Gary S. Sastow

Recently, physicians and other health care providers have been inundated with information regarding electronic medical records (“EMR”). Medical tests, prescriptions, medical histories and other information would be kept in electronic files that could follow a patient from one doctor's office to another or to a hospital or other facility, as well as allow patients access to their own information. Proponents of EMR believe that such systems will improve patient care, prevent medical errors and lower costs. However, it is believed that the vast majority of health care transactions in the United States are still taking place on paper, whether it involves a patient chart, a prescription, a consultation or a laboratory test result.

According to a recent survey, less than one-third of all medical practices in the United States have EMR systems. In early 2009, the United States government allocated, as part of the economic stimulus program, nearly a billion dollars in Medicare and Medicaid compensation bonuses available to hospitals and physicians who switch to EMR. In addition, the Medicare/Medicaid reimbursement rates may be reduced in the future for claims submitted by providers who are not using EMR. Through this carrot and stick approach, the federal government is addressing two otherwise distinct issues: subsidizing the EMR market and promoting the use of EMR as a desirable attribute of the nation's health care system. Not only would the switching to EMR stimulate the businesses engaged in providing EMR services, but the Obama administration believes that significant health care savings will result by eliminating the redundancies inherent in paper records.

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