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ILHIE Medicaid Work Group Minutes - February 3 2011 

February 3, 2011

Attendees (phone and in-person):

  • Terry Brown, Department of Healthcare and Family Services (HFS)
  • Connie Christen, HFS
  • Frank Kopel, HFS
  • Krysta Heaney, Office of Health Information Technology (OHIT)
  • Joe Holler, HFS
  • Peter Ingram, Sinai Health System
  • Mike Koetting, HFS
  • Stan Krok, Children's Memorial Hospital
  • John Lekich, HFS
  • Mary McGinnis, OHIT
  • Susan Melczer, Metropolitan Chicago Healthcare Council
  • Pat Merryweather, Illinois Hospital Association
  • Renee Perry, HFS
  • Katherine Sherman, Fox Systems
  • Dr. Silva
  • Bruce Simon
  • Matthew Werner, Consultant
  • Laura Zaremba, OHIT

Review Proposed Hospital Electronic Health Record Payment Incentive Schedule

Laura Zaremba discussed the draft hospital payment schedule that was distributed for this meeting. As discussed in previous meetings, each state has a number of elements at their discretion when determining how incentives will be administered. One of those factors is the incentive payment schedule and the total percentage that hospitals are paid each year. Illinois recently signed into law a substantial Medicaid Reform bill which includes care coordination and care management. One of the state's objectives is to coordinate healthcare policy with incentives. Per the Medicaid Reform bill Illinois is required to have at least 50 percent of Medicaid enrollees in a coordinated care management program, or enrolled in a Medicaid managed care program by 2015. The incentive payment timing is outlined in draft document that was distributed. Under federal laws and regulations, the EMR (Electronic Medical Record) payments have to be distributed within five years.

Matt Werner, a consultant for the Illinois academic medical centers, said he shared the proposed hospital incentive payment schedule with those medical centers. Matt raised strong objections to the proposal. Pat Merryweather questioned the timeline and structure of proposed payments. Several work group members voiced similar concerns.

Mike Koetting stated that the federal government has provided significant funding for HIT initiatives and that the EMR incentives are just one component of the overall strategy to incent greater HIT adoption. Mike indicated that under the proposed payment model, the majority of Illinois hospitals will qualify for the expedited payment schedule.

Peter Ingram suggested that HFS define what having a contract means and that HFS should spell out who gets the expedited payments. He also suggested defining managed care and coordinated care.

This topic will be added to the agenda for further discussion at the next Medicaid Work Group meeting scheduled on February 7, 2011.

Meeting adjourned.