MedeAnalytics Details Financial Downside Risk of Meaningful Use

White paper outlines adjustments to Medicare’s market basket
update to the IPPS

EMERYVILLE, Calif., March 30, 2010 — MedeAnalytics, a leading provider of healthcare performance management solutions, today released a white paper on one of the HITECH Act’s measures designed to motivate hospitals to become meaningful users of electronic health records (EHRs): potential negative adjustments to Medicare’s market basket updates to the Inpatient Prospective Payment System (IPPS).

“Much has been written about the economic ‘carrots’ of meaningful use—the incentive payments for which hospitals may be eligible, beginning this fall,” said Ken Perez, senior vice president of marketing for MedeAnalytics. “Far less attention has been placed on the economic ‘sticks’—the potential reductions to the annual updates to the IPPS—which are the focus of this white paper and are just as significant.”

The proposed rule on the EHR incentive program requires hospitals to report quality measures to Medicare and be meaningful users of EHRs. Starting in 2015, failure to meet these criteria would result in reductions to the market basket update. Since Medicare accounts for a large share of most hospitals’ revenues, the potential negative adjustments constitute a major downside risk.

The complimentary white paper is available for download at the MedeAnalytics Meaningful Use
Resource Center.

About MedeAnalytics
Founded in 1994, MedeAnalytics enables healthcare organizations to improve clinical, financial and operational performance through on-demand analytics and client services. For hospitals and health systems, MedeAnalytics provides solutions to address revenue cycle, patient access, clinical operations, staff productivity, regulatory compliance, finance and accounting, and enterprise performance management. For healthcare payers, the company provides solutions for provider network management, medical management and payer-provider transparency. MedeAnalytics delivers business intelligence to over 800 healthcare organizations using a hosted, Software-as-a-Service (SaaS) model, which reduces up-front costs and enables rapid implementation and exceptional time-to-value. For more information, visit www.medeanalytics.com.

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