GE will offer no-interest loans to physicians and hospitals that buy the vendor's electronic medical records systems, GE Centricity EMR and GE Centricity enterprise technology, company officials announced Monday.
GE said it would provide physicians and hospitals loans at 0 percent interest, along with a delayed repayment schedule on IT purchases as a way to help push forward the adoption of healthcare IT.
The company has earmarked $100 million for the project, which is part of a broader initiative called Healthymagination, which aims to increase the access and the use of healthcare IT.
The loan program, dubbed Stimulus Simplicity, is a joint offering of GE Healthcare and GE Capital and contains two core elements - a commitment to ensure the EMRs are certified (a precursor to federal stimulus reimbursement eligibility) and an interest-free loan with deferred payments.
Dan Henson, president and CEO at GE Capital, Americas, said, "EMRs have a bright future, and GE brings unique technology and financing capabilities that will accelerate its development. Our partnership with GE Healthcare in this program demonstrates the power of GE's portfolio in addressing important social needs. We can offer this attractive financing package because of the quality of GE's EMR offering, the reduced credit risk due to anticipated customer reimbursement from the HITECH Act, and the opportunity this program creates for new customer relationships for our healthcare financial services business."
The program addresses some of the biggest barriers to EMR adoption faced by healthcare providers, uncertainty around future standards and interim funding to cover the capital investment. said GE Healthcare IT President and CEO Vishal Wanchoo.
"This should stimulate a lot of activity," Wanchoo said. "They don't have to come up with the money up front. The customer starts to pay us when they start receiving a stream of money from the government."
The first government reimbursement payments to physicians and hospitals that show meaningful use of healthcare IT are expected in 2011 or 2012. David Blumenthal, MD, national coordinator for healthcare information technology is slated to provide Tuesday a definition of "meaningful use."
GE's Stimulus Simplicity program helps physician offices and hospitals that invest in GE's electronic medical records products, GE Centricity EMR and Centricity Enterprise solutions, maximize the potential benefits of the increased focus on EMR under the government's stimulus bill.
Financing enables healthcare providers to accelerate adoption of EMRs and further their efforts to reduce cost and improve patient care through greater access to valuable information at the point of
care. GE's financial services business, GE Capital, will provide the financing with GE Healthcare providing its EMR product certification warranty.
The Hazard Clinic, in the Appalachian region of Eastern Kentucky, is among the first to qualify for the interest-free opportunity and will use the loan to purchase the Centricity EMR solution.
"This gives a small, rural clinic like ours a once-in-a-lifetime opportunity to bring our patients the type of technology they'd typically have to travel for," said Stephanie Wooton, Hazard Clinic administrator. "The case for EMR is clear and convincing. Yet, as a community-based organization, we likely wouldn't have been able to transform our recordkeeping without this offer. Now, not only do we expect the Centricity EMR to save us money by increasing efficiencies, it will empower our staff to deliver the top- notch care our patients deserve. Frankly, that's the most exciting part."
"Electronic medical records are designed to assist providers in improving patient outcomes, and reducing medical errors and costs," Wanchoo said. "However, significant financial barriers are making healthcare providers hesitant to adopt the technology. Between the large upfront capital investment required in these challenging economic times and the uncertainty of the criteria to earn government incentive payments, small practices and facilities in rural areas and inner cities may decide the risks don't outweigh the potential benefits. GE's zero-interest interim funding and certification warranty provide doctors, community health clinics and hospitals a bridge to qualifying for stimulus funds and faster access to the improved care available through electronic medical record use."