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Healthland Releases Survey Results from Community and Rural Hospital Market at HIMSS 09

Hospitals reveal challenges with economic downturn and American Recovery and Reinvestment Act

GLENWOOD, Minn., April 6, 2009 - Healthland, America's market leader of healthcare information solutions for small community and critical access hospitals, today disclosed the results from its recent customer survey focused on the economy and the American Recovery and Reinvestment Act (ARRA) of 2009. The healthcare IT provider publicized the results during HIMSS09 Annual Conference and Exhibition this week at McCormick Place in Chicago. The findings include challenges for small community and rural hospitals under the current economic climate, as well as confusion surrounding the economic stimulus bill.

Respondents of the Healthland survey reported several financial implications related to the United State’s economic downturn including:

• 82 percent facing greater uncollectable balances for private pay patients
• 77 percent deferring capital expenditures
• 74 percent stating an increase in allocation for bad debts
• 59 percent experiencing decreased clinic volumes
• 39 percent dealing with staff reductions
• 35 percent challenged with increased hiring freezes
• 30 percent seeing decreased emergency room volumes

“Small community and rural healthcare providers are facing unprecedented financial challenges and it’s up to the entire industry to work together to provide these facilities with the tools necessary to meet impending technology mandates,” said James Burgess, president and CEO of Healthland. “It is essential that IT vendors take on a leadership role and act as advocates in the rural and critical access hospital community, as they are crucial to healthcare reform. We will do this by providing expertise in both electronic medical records and more broadly, information technology.”

Under the American Recovery and Reinvestment Act of 2009, $19.2 billion has been allocated to fund health information technology projects - $17.2 billion in Medicare and Medicaid incentive payments for “meaningful use” of electronic health records (EHR) systems starting in 2011, with the remaining $2 billion used to help organizations get a “jump start” on healthcare IT adoption. However, the ARRA remains confusing and ambiguous to many small community and rural hospitals. In fact, the Healthland survey reports:

• 44 percent of participants still need to figure out how to get IT funding under the ARRA
• 37 percent believe funding is coming, but they will never see it
• 28 percent say they have no idea how to qualify for ARRA funding

According to a recent survey published in the New England Journal of Medicine, only nine percent of U.S. hospitals have electronic health records. Healthland’s data and experience in the market reveal that the number is even lower for small hospitals, estimated to be closer to three to five percent. Cost is listed as the number one factor for 74 percent of hospitals without an electronic records solution - and cost remains a particularly difficult barrier for small community and rural hospitals that need assistance to fund IT projects. Consequently, it is necessary to help provide these hospitals with clarification on how the reimbursements work and definitions around “meaningful use” of EMR systems.

“To meet new ARRA requirements, it is necessary for healthcare facilities to act now to take advantage of the government funding,” added Burgess. “Many customers are already moving ahead aggressively, reserving their spot in the long line that will form to implement these systems. And equally important, they must find a vendor committed to meeting forthcoming certifications. At Healthland, we are dedicated to keep ahead of the curve with all industry certification provisions for our customers, as well as providing the most up-to-date information and tools that will enable them to reap the benefits from the ARRA.”

To help its customers navigate through the complex waters of the economic stimulus bill, Healthland is currently working with its partnerships and affiliations with industry leaders to provide tools and information surrounding the new ARRA provisions. Through its partnerships with Grants Office and McDermott Will & Emery, LLP, along with its affiliations with HIMSS (Healthcare Information and Management Systems Society) and EHRA (Electronic Health Record Association), Healthland provides ARRA educational webinars and informational updates. McDermott Will & Emery, LLP is a key player in the American Health Lawyers Association and has presented a stimulus interpretation for HIMSS. In addition, Healthland is offering financing options and IT solution assessments to assist hospitals and clinics in need.

Healthland representatives will be available to discuss the complete results of its survey at HIMSS09, booth #6827.