N.C. Insurer Picks Up EHR Tab

Blue Cross Blue Shield of North Carolina is buying electronic health records for more than 750 physicians in a bid to better manage costs and help doctors participate in the N.C. Health Information Exchange, the insurer says in an announcement released today.

The state's largest insurer will pick up 85 percent of implementation costs for most of the medical practices over the next five years. It also will pay the entire EHR implementation cost for 150 doctors at 39 free clinics. BCBSNC is investing $15 million, a cost it is sharing with the Chicago-based health IT company Allscripts.

"North Carolina is taking real action and leading the charge toward more effective, more efficient health care," says Glen Tullman, Allscripts' chief executive. "Electronic health records are a critical part of a future that provides Americans with more affordable, higher quality care. Collaborations like this one that expand the reach of technology are a step in the right direction."

The initiative, known as the North Carolina Program to Advance Technology for Health (NC PATH), also will provide training and ongoing support in implementing EHR technology and achieving "meaningful use." Medical providers that prove they meet federal meaningful use standards can qualify for incentive payments through Medicare and Medicaid, in this case up to $44,000, the insurer says.

Practices also will receive support to earn Patient Centered Medical Home certification, which Blue Cross Blue Shield says enhances the quality of health care and helps manage costs. Patients in PCMH-certified practices make half as many visits to specialists, 70 percent fewer visits to emergency rooms, and stay in hospitals less time, BCBSNC says.

The benefit to practices could include higher reimbursements from Blue Cross Blue Shield. The insurer says it will work with the N.C. Area Health Education Center's Regional Extension Center programs to help practices identify ways to improve quality and achieve the certification.