August 24, 2006
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Federal provisions OK electronics donations without violating anti-kick-back laws

The rules will be in effect until 2013 to reach President Bush's goal for electronic health records.

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Two new government rulings provide exemptions to the physician referral law and anti-kickback statute allowing physicians greater access to electronic health records and prescription technology.

The rules, separately issued by the Centers for Medicare and Medicaid Services (CMS) and the Office of the Inspector General (OIG), enable medical groups to donate specific software and training for electronic health records and electronic prescriptions without violating federal reciprocity laws.

"Electronic health records help doctors provide higher quality patient care, improved efficiency and with less hassle," the department of Health and Human Services (HHS) secretary, Mike Leavitt, said in an HHS news release. "By removing barriers, these regulation changes will help physicians get these systems in place and working for patients faster."

The CMS rule makes two exceptions to the physician self-referral law, and the OIG ruling creates two safe harbors under the anti-kickback statute. While the new rules are similar, the safe harbors allow more groups to donate and receive gifts.

Under the exception for electronic health records, only entities that provide designated health services can donate software and services to physicians. "However, consistent with underlying statutory differences, the safe harbor covers a broad array of providers, suppliers, practitioners and health plans when they provide electronic health records technology to physicians and others engaged in the delivery of health care," officials said in the release.

Both conditions for electronic health records stipulate that recipients must pay 15% of the donation's cost.

The Medicare Prescription Drug, Improvement and Modernization Act (MMA) called for an exception and safe harbor regarding electronic prescribing technology. While the arrangements allow hospitals and other groups to give physicians "hardware, software, or information technology and training services necessary and used solely for electronic prescribing," the safe harbor includes an expanded recipient list.

To facilitate the president's goal of providing electronic health records by 2014, both the CMS and OIG rulings will remain active until Dec. 31, 2013, according to the release.