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Adopt HIT Act: Saving Money, Saving Lives

by Joan Trombetti, Writer | May 27, 2007
Proposed legislation would
increase the tax allowance
for health information technology

(click to enlarge)
In 2006, US Congressman Phil Gingrey, MD testified before Congress proposing to accelerate the adoption of Healthcare Information Technology (HIT) measures through tax incentives that relieve some of the financial burden.

A year later, after what seemed to be inactivity on this IT legislation, Dr. Gingrey introduced the Assisting Doctors to obtain Proficient and Transmissible Health Information Technology Act (ADOPT HIT) that would allow physicians to write off $250,000 a year on the purchase of healthcare IT systems. The current allowable deduction is $100,000. This is a stand-alone version of the bill H.R. 1952 introduced by Gingrey and Charles Gonzalez (D-Tex) in April.

"The future of American healthcare will be determined in part by our adoption of health information technology, said Gingrey. "We know health IT can reduce medical errors, save time, money and most importantly, lives. However, the healthcare sector is woefully behind in using this technology. I can go to Antarctica and get cash from an ATM without a glitch, but should I fall ill during my travels, a hospital there couldn't access my medical records or know what medications I take. Our banks shouldn't be more technologically advanced than our doctor offices," said Gingrey.
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At the same time, Senator Debbie Stabenow introduced the Health Information Technology Act of 2007 that allows a tax incentive for the purchase of healthcare IT, along with measures to provide grants and privacy protection. The bill is co-sponsored by Sen. Olympia Snowe and reintroduces a similar bill presented last year.

At a press conference held on Capitol Hill May 16, 2007 and sponsored by the Healthcare Information and Management Systems Society (HIMSS) and 27 other healthcare associations, Stabenow said that savings rendered from the implementation of healthcare IT could be used to cover the uninsured.

According to Stabenow, healthcare IT currently has a surge of support from consumers, contributing to the right environment for passing a bill. "Now is the time to get it done," Stabenow said. "This ought to be a no-brainer for us."

As part of National HIT advocacy day May 15, some 200 HIMSS members and supporters visited congress requesting legislation that will fund healthcare IT adoption at a minimum of $165 million. They also asked congress to make permanent the Office of the National Coordinator for Health IT, which is now established through a presidential executive order subject to expiration upon the change of administrations.

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