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Rural Calif. to get health IT grants

By Molly Merrill

The state of California will give $25 million in new grants for healthcare technology projects to underserved parts of the state in order to expand access to specialty doctors, Gov. Arnold Schwarzenegger (R-Calif.) announced Aug. 22.

Schwarzenegger signed an executive order in July 2006 establishing a goal to achieve 100 percent electronic health data exchange in California over the next 10 years. Since then, the Department of Managed Health Care and other state agencies have drafted a health information technology blueprint, which includes seeking additional financing options.

The grant will include technology improvements for safety net providers such as health clinics, critical access hospitals and country health departments. The grants will fund additional areas such as preventive healthcare and medical education programs.

The Department of Managed Health Care estimates that $1.6 trillion is spent each year on healthcare in America, yet the nation lags in important IT infrastructure building projects.

"Expanding health information technology is a cornerstone of my comprehensive plan to reform our broken health care system," Schwarzenegger said. "Using technology in healthcare not only expands access to underserved parts of California, but also increases patient safety and reduces overall health care costs."

The grants will be made available through a competitive bidding process. Applications will be made available at the California Department of Managed Health Care Web site.