159k views
1 vote
For providers who do not adopt EHR, monetary incentives from CMS will turn into significant disincentives by this year

1 Answer

0 votes

Final answer:

Healthcare providers who have not adopted EHR systems face financial disincentives from CMS due to regulations from the ACA.

Step-by-step explanation:

For providers who do not adopt Electronic Health Records (EHR), monetary incentives from the Centers for Medicare & Medicaid Services (CMS) will turn into significant disincentives as these incentives were introduced to promote the uptake of EHR systems. This is due to regulations introduced by the Affordable Care Act (ACA) with the aim to control healthcare costs, including requirements for healthcare providers to switch to EHRs. Such measures were designed to reduce administrative costs and improve efficiency within the healthcare system. Providers who have not transitioned to EHR may face penalties which can result in financial disincentives for their practices.

In addition to the financial aspects, the shift towards Managed Care Organizations like Health Maintenance Organizations (HMOs) has altered the incentive structure in healthcare. Providers now have an incentive to focus on cost-effective care, with a fixed payment structure incentivizing fewer unnecessary services and a focus on long-term health outcomes. The mix of managed care and fee-for-service payments reflects an effort to address the moral hazard issue in healthcare, encouraging providers to offer efficient and necessary care without the same financial incentives to provide excessive services.

User Adam Rodger
by
7.8k points