Survey: Providers see healthcare reform leading to increased costs

According to results of a recent survey, many providers recognize the importance of healthcare reform but are concerned that proposed reform tools, such as pay-for-performance or national health coverage, could negatively impact their bottom lines and patient care delivery.

The survey of more than 500 providers was conducted by Ivans, a provider of healthcare connectivity solutions and services. According to the reported results, 72 percent believe a pay-for-performance model could lead to improved patient outcomes, but 79 percent said it would increase their costs of doing business, due to increased reporting and record-keeping requirements.

The providers who responded believe a national health insurance plan would be even less effective, with 60 percent saying it would either increase costs or have no affect at all. Seventy-five percent think that a national health insurance plan will actually reduce the quality of care or at best, have a neutral affect. Forty-one percent think this type of plan can reduce costs; 22 percent think it will actually increase costs; and 13 percent said it would have no effect.

The survey also revealed providers' concerns regarding administrative reform. More than 50 percent believe the the American Recovery and Reinvestment Act (ARRA) funds earmarked for health IT will have little to no success in encouraging health IT adoption.

"Providers are diverse and significant attention from the government needs to be placed on addressing their different needs," said Clare DeNicola, president and CEO of the Stamford, Conn.-based Ivans. "A small nursing home in a rural area will have IT requirements that vary from a multi-facility hospital. The interests and concerns of all involved stakeholders need to be met for meaningful use of health IT to occur."

The respondents indicated that they are already investing in IT to some extent, with wireless networks (44 percent), business continuity technologies (40 percent) and connectivity to remote locations already in place (35 percent). When asked who should take the lead on driving health IT adoption, 47 percent of providers named themselves, while 21 percent suggested the government should lead the initiative. However, 14 percent said that payors should have that responsibility and the remaining 18 percent were split between industry associations and consumers leading the charge.

Survey participants also expressed confusion around what the right solution should be and how to pay for it. Sixty-one percent believe EHRs could have a positive impact on their businesses, but 82 percent cited lack of budget as their biggest challenge in implementing health IT.

Only 17 percent of providers surveyed are participating or planning to participate in a health information exchange (HIE) over the next 12 months. Without the mechanism to share records among a patient's caregivers (e.g. via HIEs or similar data exchanges), the value of an EHR is severely restricted, and providers could face reduced payments from Medicare and other payers if a system lacks interoperability. according to the report.

"While there are many pieces to the healthcare puzzle that still need to be figured out,  the use of HIEs and EHRs will create greater information transparency and will play a critical role in whether healthcare reform succeeds or does not," DeNicola said. "The government needs to get tactical about what qualifies for the funding and what doesn't as providers are wary to start implementation without this understanding."