State Senator Donald E. Williams, Jr.
March 11, 2008
Legislature & Governor Rell Must Move Quickly to Capture Federal Funds for Health Information Technology
Senator Williams says millions of dollars and thousands of jobs are at stake
Senate President Donald E. Williams, Jr. (D-Brooklyn) has sent a letter to Gov. Rell requesting that her administration work quickly and cooperatively with the legislature in order to capture tens of millions of dollars in federal funds from President Obama’s American Recovery and Reinvestment Act (ARRA) which are designated for Health Information Technology (HIT).
“If the state does not take any action, we face the possibility of losing tens of millions of dollars from the federal government that would be used to improve the state’s Health Information Technology,” said Senator Williams. “We need these funds in order to grow jobs and the Health Information Technology industry in the state. Furthermore, these dollars would also help to lower the cost of health insurance premiums at a time when many Connecticut residents are struggling to make ends meet.”
President Obama has made HIT one of the centerpieces of the ARRA. He is committed to HIT as a mechanism to lower the cost and improve the quality of healthcare and allocated approximately $36 billion in ARRA for HIT.
There are two provisions in the ARRA that address the role of states in promoting HIT. It is critical that Connecticut take action in these areas as soon as possible in order to make sure that the state can submit competitive applications for these highly-sought dollars.
Grants to States for Loan Programs to Providers: One of the major barriers that providers face in using electronic health records (EHRs) is the cost of setting up these systems. The ARRA addresses this barrier by allocating money to states to set up revolving loan programs for loans directed to providers to help them for EHRs. Dollars for these programs are awarded by the federal government to states through a competitive process. Importantly, states must contribute $1 dollar for every $5 dollars of federal funds that they receive.
Senator Williams wrote to Gov. Rell, “With a revolving loan program paid for largely by federal dollars, a small investment by the state could pay significant dividends. The federal government may make awards to states as soon as January 1, 2010 — we need to make sure the infrastructure is in place to receive these dollars on that date. “
There are several items that Connecticut should take swift action on:
- Convene a group to make recommendations on how the loan program should work. Such a group should include providers, hospitals, clinics, health information technology experts, legislators and others. Such a group should provide recommendations to the legislature by May 1, 2009.
- Pass legislation establishing the revolving loan program. This needs to be accomplished by the end of this legislative session. Such a program could be made effective upon receipt of the federal match.
- Bond for the dollars required by the state match. In these difficult fiscal times, the best way to secure the dollars required by match is by bonding for them. Given the amount of time that it takes to secure dollars through bonding, legislative leaders and Gov. Rell should work together to ensure that this happens expeditiously.
- Establish an Office of HIT within the DPH. Having an office within DPH focused on HIT would best ensure that efforts between state agencies are coordinated and that efforts within the state are maximized. Senator Williams looks forward to working with Gov. Rell and Commissioner Galvin to determine the best structure to accomplish this goal.
Grants to States to Promote HIT and Facilitate Health Information Exchange (HIE): Even if every provider in the state utilized an EHR, we would not be able to take full advantage of this technology if we did not provide a mechanism that allowed the various EHRs to exchange data and to ‘talk’ with each other. HIE is the mechanism that can facilitate such exchanges.
Senator Williams writes, “The federal stimulus package has set aside $300 million dollars to establish an accurate and secure healthcare database at the state and local levels. The language of the legislation states that these dollars may be awarded to states or state-designated organizations. There is no timeline set for when these dollars will be awarded; I believe that we should move quickly to make sure that Connecticut is in the strongest possible position to receive a substantial share of these funds.”
There are three items that Connecticut must take action on immediately:
- Convene all relevant parties to ensure that the state has a unified plan. A working group composed of legislators, individuals from the Rell administration, health information technology experts needs to meet regularly in order to be sure that there is a unified plan. Such a group should begin meeting immediately.
- Name eHealthConnecticut as a state-designated organization. eHealthConnecticut, has been working to prepare the way for HIE in the state. Lieutenant Governor Fedele is an ex-officio member of the Board of Directors, as are Commissioners Galvin and Starkowski. eHealthConnecticut has earned federal designation as both a Regional Health Information Organization and as a Chartered Value Exchange. eHealthConnecticut is well-positioned to carry out the vision in the state’s health information technology plan and to apply for the federal dollars. Bipartisan discussions regarding eHealthConnecticut’s role in this endeavor, including appropriate legislation, should begin immediately.
- Bonding. The dollars provided by the ARRA for HIE will likely not be enough to fully fund HIE in Connecticut. Moreover, ARRA specifies that as of FY11, a state match will be required (and may be required sooner). Connecticut should also provide bond funds to help Connecticut build a functioning HIE. Bond funds for HIE will achieve two purposes: they will improve the functioning of the healthcare system and will make Connecticut more competitive for federal stimulus funds.
“I believe that time is of the essence in order to ensure that Connecticut receives as much federal funding as possible,” wrote Senator Williams. “Receiving these dollars will provide jobs to Connecticut residents and will help improve the functioning of our healthcare system. I look forward to working with your (Gov. Rell’s) office to achieve these goals.”
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