California's Department of Health Care Services (DHCS) has announced the launch of the first phase of its Medi-Cal Electronic Health Record (EHR) Incentive Program, which will deliver as much as $1.4 billion in federal incentive payments over the next 10 years to eligible hospitals and healthcare professionals.
The program is part of the American Recovery and Reinvestment Act and will reward providers and hospitals for adopting, implementing, or upgrading to certified EHR technology in the first year of the program and demonstrating meaningful use of the technology in the years thereafter, DHCS said.
To participate in the program, healthcare providers must first register through the U.S. Centers for Medicare and Medicaid Services (CMS), and then enroll in the state-level registry hosted by DHCS.
DHCS expects approximately 250 hospitals to apply and qualify for the program. To help expedite the application process for eligible hospitals, DHCS offered a three-week "prequalification" period in September, during which hospitals could submit their eligibility packages for review. Thirty-eight hospitals took advantage of this opportunity, representing more than $128 million in potential incentive payments. Approximately $64 million of that amount will be distributed by the end of 2011, DHCS said.
