When will the incentive payment program begin and how much Medicare incentive funding will be available for hospitals?
The Medicare HIT incentive program will begin on October 1, 2010 for Subsection (d) hospitals under Section 1886 of the Social Security Act that demonstrate meaningful use of certified EHR technology. Medicare hospital HIT incentive payments will be based on a calculation equal to $2 million plus the “Discharge Amount” multiplied by the “Medicare Share” and multiplied by the “Transition Factor.” The “Discharge Amount” is equal to $200 for each discharge between 1,150 and 23,000 in a twelve month period selected by the HHS Secretary. The “Medicare Share” is equal to “Medicare Bed Days” divided by “Total Bed Days” multiplied by the “Charity Factor.” “Medicare Bed Days” is equal to the estimated annual number of Part A and C inpatient bed days. “Total Bed Days” is equal to the estimated annual total number of inpatient bed days. The “Charity Factor” is equal to the hospital’s estimated total charges less charges attributable to charity care, divided by the hospital’s estimated total charg
