Health Information Technology Financing Resources in United States

Federal Legislation

The primary Federal regulations affecting the uses and disclosures of behavioral health
information include:

• 42 Code of Federal Regulations (C.F.R.) Part 2 (as revised March 2017) – Confidentiality
  of Substance Use Disorder Patient Records.
• 45 C.F.R. Parts 160-164 – Health Insurance Portability and Accountability Act (HIPAA).

Overall Healthcare Privacy and Security Laws

HIPAA Privacy Rule (45 C.F.R. § 164.500 et seq.)

The HIPAA Privacy Rule establishes national standards to protect individuals’ medical records
and other personal health information and applies to health plans, healthcare clearinghouses,
and those healthcare providers that conduct certain healthcare transactions electronically. The
Rule requires appropriate safeguards to protect the privacy of personal health information, and
sets limits and conditions on the uses and disclosures of such information without patient
authorization. Generally, exceptions are allowed for treatment, payment and healthcare
operations. The Rule also gives patients’ rights over their health information, including rights to
access, examine and obtain a copy of their health records, and to request corrections.

HIPAA Security Rule (45 C.F.R. § 164.300 et seq.)

The HIPAA Security Rule establishes national standards to protect individuals’ electronic
personal health information that is created, received, used, or maintained by a covered entity
or its business associate(s). The Security Rule requires appropriate administrative, physical, and
technical safeguards to ensure the confidentiality, integrity, and availability of electronic
protected health information.

Substance Use Disorder Privacy Laws

Confidentiality of Substance Use Disorder Patient Records – 42 C.F.R. Part 2

42 C.F.R. Part 2 applies to federally assisted substance use disorder programs that meet the
definition of a ‘program.’ Regulations apply to information that would identify a patient as
having a substance use disorder (SUD) and allow very limited disclosures of information without
patient authorization.

US Health Information Technology Financing Resources

2007 State Legislation on Health Information Technology Financing

Electronic medical records $300,000

Fund sources: State general fund  $300,000ArkansasAct 1283, AR H 1354Enacted 04/05/2007Department of Health and Human Services appropriations for the 2007-2009 biennium, including the Health Department Technology Fund, for Information Technology Initiative activities of the Department of Health.Division of Health – Information Technology Initiatives for the biennial period ending June 30, 2009, the following: Fiscal year 2007-2008 – $596,640; 2008-2009 – $596,640.

CaliforniaCA SB 320Vetoed 10/14/2007Establishes the Health Care InformationInfrastructure Program.  The bill would require, within one year of the establishment of the program, and updated annually thereafter, the office  to develop and deliver to the Legislature a plan regarding the opportunity for every resident of the state to have an electronic health care record.  Other responsibilities of the office  would include, among others, conducting research, implementing pilot projects as necessary, and pursuing a waiver to enable the Medi-Cal program to participate in the statewide information technology infrastructure program.This bill would authorize the office to receive various forms of funding to be used, upon appropriation by the Legislature, for purposes of the bill  and would establish a $350,000 maximum on expenditures for this purpose for the 2008 calendar year.  The office may receive federal funds, gifts, grants, revolving funds, and any other public or private funds which, upon appropriation by the Legislature, may be used for the purposes of implementing this part. CA SB 1039Enacted 10/11/2007Makes technical and conforming changes to the Public Health Act of 2006. Establishes new functions and responsibilities for the State Department of Public Health and the State Department of Health Care Services.Subsection (c) The department shall select the Health Care Coverage programs that best meet the requirements and desired outcomes set forth in this part. (d) The following elements shall be used in evaluating the proposals to make selections and to determine the allocation of the available funds: (1) Enrollment processes, with an identification system to demonstrate enrollment of the uninsured into the program. (2) Use of a medical record system, which may include electronic medical records. CA SB 236Pending 04/19/2007Health reform legislation.  Expresses the Legislature’s intent to enact the Cal CARE program to improve access to health care services for the residents of the state.Provide a tax credit for hospitals and physicians and surgeons who purchase cost-saving and quality-improving technologies such as electronic medical records and telemedicine and establish a low-interest loan program to assist nonprofit hospitals and medical groups make health care technology purchase. CA SB 13 aIntroduced 10/11/2007Requires the California Health Facilities Financing Authority to establish a low- interest loan program for financing costs of purchasing a health care information technology system.  Tax-credits for the purchase of health information technology by qualified taxpayers17053.87. (a) For each taxable year beginning on or after January 1, 2008, and before January 1, 2013, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 15 percent of the cost that is paid or incurred by a qualified taxpayer during the taxable year for the purchase of health care information technology.

(b) For purposes of this section:

(1) “Health care information technology” means information technology purchased by a qualified taxpayer that will aid in the provision of health care in a health care setting, including, but not limited to, electronic medical records. “Health care information technology” shall not include information technology whose sole use is financial management, maintenance of inventory of basic supplies, or appointment scheduling.

(2) “Qualified taxpayer” means a for-profit or nonprofit health institution, health facility, hospital, long-term care facility, or licensed physician and surgeon whose primary business is health care.ColoradoChapter No. 282,
CO S 196Enacted 05/24/2007Creates the health information technology advisory committee to develop a long-range plan for health care information technology, including the use of electronic medical records, computerized clinical support systems, computerized physician order entry, regional data sharing interchanges for health care information, data privacy and security measures, and other methods of incorporating information technology in pursuit of greater cost-effectiveness and better patient outcomes in health care.The committee’s long-range plan may: Propose strategies and investigate funding sources and continued financial support for any strategies proposed by the committee. Chapter No. 319,
CO H 1346Enacted 05/29/2007Concerns managed care in the Medical Assistance Program.Section (3) Subject to the approval of the state board, a PIHP agreement may also provide for an increase in the fee paid to the contractor in an amount reasonable calculated to cover the costs of collecting and maintaining the medical records of recipients through an electronic medical records system.ConnecticutCT H 8002Enacted 6/26/2007Implements the provisions of the budget concerning human services and public healthSec. 115. (Effective July 1, 2007) Up to $500,000 of the unexpended funds appropriated to the Department of Children and Families, for the fiscal year ending June 30, 2007, for Board and Care for Children – Foster Care, shall not lapse on June 30, 2007, and shall continue to be available for an electronic medical records system in FY 2008. Chapter 185, CT S 1484Enacted 07/10/2007Concerns the HealthFirst Connecticut and Healthy Kids initiatives

Sec. 43. (Effective July 1, 2007) The sum of two million dollars is appropriated to the Department of Public Health, from the General Fund, for the fiscal year ending June 30, 2008, for grants to community-based health centers for infrastructure improvements, including, but not limited to,
health information technology.DelawareDE H 250Enacted 07/01/2007A Bond and Capital Improvements Act for the fiscal year ending June 30, 2008.

Section 37. Delaware Health Information Network. The Section 1 Addendum to this Act appropriates $3,000,000 for the Delaware Health Information Network. As a joint initiative between private, federal and state funds, the $3,000,000 shall be utilized to support the development of an interoperable network to exchange clinical information among all healthcare providers across the state to improve patient outcomes and patient-provider relationships. The system shall be designed to allow patient clinical information to be shared across all healthcare facilities and organizations and across public and private sectors.District of ColumbiaDC L.B. 2Enacted 01/16/2007Among other things appropriates funds for electronic health records system in community health centers.(B) Of the remainder of the grant, $2.2 million in fiscal year 2007 and $2.8 in fiscal year 2009, shall be used to develop an electronic health record system for community health centers to promote higher quality of care, improved coordination of services among providers, and more accurate reporting of health statistics to the Department of Health; provided, that of the $2.2 million allocated for fiscal year 2007, $200,000 shall be used to support information technology needs for District of Columbia public and charter school nurse suites.FloridaChapter No. 2007-105, FL S 1974Enacted 06/12/2007Provides appropriations for health information technology; creates the Agency for Enterprise Information Technology to define architecture standards for information technology and developing a strategic enterprise information technology plan; revises the duties of the Technology Review Workgroup.Funding for experiments and pilot projects shall be derived from service revenues and may not exceed 5 percent of the service revenues for the Technology Resource Center for any single fiscal year.  Relating to theHealth Information Systems Council, expedited permitting, the Florida Center for Health Information; providing appropriations and authorizing additional positions; providing an effective date.GeorgiaGA S 28Pending 01/22/2007Revises health insurance laws.Provides for an income tax credit with respect to qualified health information technology expenses.  Qualified expenses must be made by a physician, pharmacy, or hospital, and tax credit is not to exceed $5,000. GA H 404Pending 02/13/2007Revises health insurance laws.Same as GA S 28. GA S 150Pending 02/13/2007Relates to health, so as to provide for the establishment of a website to provide consumers with information on the cost and quality of health care in Georgia, as well as to provide for electronic medical records.Subject to appropriations by the General Assembly, the website shall be developed, hosted, and maintained by a private or other entity selected through a request for proposals process. Such website shall be operational and available to the public no later than January 1, 2008.  All health care facilities licensed under this article which receive any state funds shall submit performance and outcome data as well as pricing information to the Department of Community Health. GA H 94Enacted 04/19/2007Appropriation billProvide funding to The Georgia Association for Primary Health Care to complete the statewideElectronic Medical Records system to link the Federally Qualified Community Health Centers. Amount appropriated in this Act $10,849,617     $11,499,4551HawaiiHI H 1701Pending 01/23/2007Appropriate funds for capital improvement projects for the benefit of the 6th Representative District.Section 5 (D) West Hawaii community health center, Hawaii.  Design, construction, and equipment for an electronic medical records system and dental equipment for a comprehensive community healthcare, mental healthcare, and early intervention primary healthcare.  Design appropriation is $1,000. HI S 977Pending 02/15/2007Appropriates funds to develop a statewide rural training model to provide a pipeline of well trained family physicians to improve health care accessThe partial costs of starting the two new academic clinical practices on the neighbor islands total $870,000 in fiscal year 2008 and $1,890,000 in fiscal year 2009. They include the costs of eight faculty physician salaries, clinic infrastructure improvements, transportation, and electronic health records.  The sustainability of this model will be accomplished through a combination of CMS funding, clinical revenue, and support from rural hospital and community health center partners similar to programs adopted successfully in other rural states such as Washington and Wisconsin.IdahoChapter No. 199, ID H 159Enacted 03/27/2007Creates a Community Health Center Grant Fund with the intent of improving access to health care services through grants.Section (1) Individual grant awards will be limited to a total of five hundred thousand dollars ($500,000) for direct and indirect costs, per year. (2) No project may be funded for more than a total of one (1) year.  (3) In addition to other uses as approved by the board, funds awarded under a grant may be used for the purchase, construction, renovation or improvement of real property or for projects which are solely or predominantly designed for the purchase of equipment, including information technology and electronic health records.IllinoisIL S 559Pending 02/08/2007Revises health insurance laws. Establishes the Illinois Innovative Solutions Program and the Illinois Health Insurance Premium Assistance Program.  Implements a plan to provide electronic health records for all Illinois citizens. Permits bonus depreciation deductions taken for health information technology.  Section 90 (d) The Department may accept gifts and grants from any party, including a health benefit plan issuer or a foundation associated with a health benefit plan issuer, to assist with funding the programs established in Section 90 of this Act.  Sec. 5-26. Incentive payments to providers. Subject to appropriation, the Department shall establish incentive payments to eligible providers based on a quality reporting system. IL H 1987House Rules Committee 05/25/2007Revises health insurance laws.Same as IL S 559. IL H 1254Amendatory Veto 08/21/2007

Bill Failed10/05/2007Creates the state Health Information Network Act. Requires the Department of Public Health to establish a not for profit corporation to plan a state-level network for the electronic exchange of medical patients’ records among health care providers.Section 15 (f) ILHIN may solicit grants, loans, contributions, or appropriations from public or private sources and may enter into any contracts, grants, loans, or agreements with respect to the use of such funds to fulfill its duties under this Act. No debt or obligation of ILHIN shall become the debt or obligation of the State. IL H 1258House Rules Committee 05/25/2007Creates the Universal Access to Broadband Services Act. Requires a survey assessing interest in creating a local broadband plan and providing technical assistance. Adds language including health care facilities and providers as part of the Century Network.(d) Improved quality of health care throughout the State depends on access to broadband services to enable medical providers to implement and interconnect electronic health records.  Section 15 (a) Any municipality or county may apply for and receive funds or technical assistance to undertake broadband projects, including the lease of publicly-held broadband infrastructure. IL S 5House Rules Committee 06/01/2007Health reform legislation.  Creates the Illinois Health Care For All Act.(e) Funds collected by the ILHIN shall be considered private funds and shall be held in an appropriate account outside of the State Treasury. The treasurer of the ILHIN shall be custodian of all ILHIN funds. The ILHIN’s accounts and books shall be set up and maintained in a manner approved by the Auditor General and the ILHIN and its officers shall be responsible for the approval of recording of receipts, approval of payments, and the proper filing of required reports. IL S 3866Enacted 8/23/2007Fiscal year 2008 appropriations billArticle 300 Section 20.
For Expenses of the Public Health Information Network… 67,800

For Expenses of the Adoption Registry and Medical Information Exchange… [V> 321,200 <V]  141,200IndianaPublic Law No. 111, IN S 551Enacted 05/02/2007Establishes the Health Informatics Corporation.Sec. 11. The corporation may request appropriations from the general assembly to: (1) carry out the corporation’s duties under this article; and (2) fund the effort to develop and operate a statewide health information network.IowaIA H 211Pending – CarryoverProvides for the establishment of a health care information technology and infrastructure advisory committee; makes an appropriation.The bill provides for an appropriation from the general fund of the state to the department of public health for the fiscal year beginning July 1, 2007, and ending June 30, 2008, of $300,000 for utilization by and in support of the health care information technology and infrastructure advisory committee. IA H 909Enacted 05/29/2007Makes appropriations for health and human services.For the state resource center at Woodward, $1,000,000.  The amounts above $750,000 at each resource center shall be used to continue the procurement and installation of the electronic medical records system initiated in the fiscal year beginning July 1, 2005.KansasKS H 2951Pending – CarryoverHealth reform legislation.  Enacts the Foundations of Health Reform Act of 2007.New Sec. 5. (a) The Kansas health policy authority shall conduct a needs analysis to design a database of clinical utilization information or electronic medical records for Medicaid providers. This system shall be based and funded in the private sector by 2013. KS H 2368Enacted 04/23/2007An act appropriating funds(e) In addition to the other purposes for which expenditures may be made by the Kansas health policy authority from the moneys appropriated from the state general fund or from any special revenue fund for the Kansas health policy authority for fiscal year 2008, as authorized by this or any other appropriation act of the 2007 regular session of the legislature, expenditures shall be made by the Kansas health policy authority from moneys appropriated from the state general fund or from any special revenue fund for the Kansas health policy authority for fiscal year 2008 to support ongoing health information exchange initiatives that include health information exchange infrastructure planning, privacy and security collaboration, the advanced identification card project and the community health record project and to support the inclusion of disease management, a strengthening of electronic prescribing and electronic medical records and the development of pilot programs and compatibility with the private sector.Kentucky    LouisianaLA S 1Enacted 07/06/2007Authorizes the Department of Health and Hospitals to develop and implement a health care delivery system for Medicaid recipients and low-income uninsured citizens.Proposed law provides that Louisiana Health First shall consist of a medical home system of care and shall incorporate health information technology and quality measures.  Proposed law provides for the adoption of health information technology to fully participate in Louisiana Health First and requires that the department avail itself of any public and private funding available to implement health information technology. Section 978.4. Funding The provisions of this Chapter shall be budget neutral or subject to an annual appropriation of the legislature. Act No. 172, LA S 238Enacted 06/27/2007Establishes the Health Care Redesign Fund in the state treasury.Redesign effort will require both transitional and permanent changes in the state’s medical assistance programs and their financing. Establishes the Health Redesign Fund, partly to provide funding for the development of the Medical Home and Health Information Technology Systems. Act No. 203, H 765

Enacted 06/27/2007To appropriate funds from certain sources to be allocated to designated agencies and purposes in specific amounts for the making of supplemental appropriations for said agencies and purposesPayable out of the State General Fund (Direct) for implementation of Phase I of the statewide electronic medical records system for state public hospitals and medical centers $ 30,000,000MaineME S 221Pending – CarryoverMakes a one-time General Fund appropriation of $75,000 in fiscal year 2007-08 for the Commissioner of Health and Human Services to issue grants to develop communication programs and procure information technology productsMedical Error Disclosure and Compensation Program for grants to program participants to procure information technology products; General Fund 2007-2008: $75,000; 2008-2009: $0. ME H 1251Pending – CarryoverAppropriates $2,000,000 to Maine’s HealthInfoNet program to fund the creation of a health information exchange and to facilitate the use of electronic medical records.HealthInfoNet Program under the Department of Health and Human Services; General Fund 2007-2008: $2,000,000; 2008-2009: $0. Chapter 240, ME H 383Enacted 06/07/2007Appropriates funds for the 2008-09 bienniumAppropriates funds on a one-time basis for grants to HealthInfoNet to help build the first phase of Maine’s health information exchange system.  2007-08 General Fund Total  $265,000MarylandMD H 979Enacted 04/24/2007Alters the uses of the Community Health Resources Commission Fund to provide funding for a regional health data exchange; requires the Health Services Cost Review Commission to provide funding of at least a specified amount for a regional health data exchange; establishes eligibility requirements for an organization to receive funding.SECTION 2. … (a) (1) The Health Services Cost Review Commission shall provide funding through hospital rates of $10,000,000 each year to establish a regional health data exchange …(2) … awarded for a 3-year period, beginning in fiscal year 2008.  (3) [defines what organizations are eligible for funding  –private nonprofit, significant experience with health information in the state, broadly  representative governance]MassachusettsMA H 1130To Conference Committee 05/16/2007Reduces administrative burdens in the delivery of health care through the use of new technology.Section 1 Establishes the Patient Safety Technology Trust Fund to Section 1(a) Provide for a grant program to promote health care quality and safety through the use of new health information technology.  Section 2 (f) Disbursement of funds shall be achieved through a separate Request for Application issued to hospitals and physicians participating in the MassHealth program. Said Request for Application shall provide a process by which hospitals and physicians will receive payments to purchase and install eligible technology systems. MA S 261, 263, 264Pending 01/10/2007Provides for capital outlays for the acquisition, upgrading, development and implementation of health care technology in the Commonwealth.Provides for grants and zero or low-interest loans to state and local agencies of government, institutions of higher education, health care providers, health care organizations, health plans and insurance entities, health consumer organizations, not-for-profit health information technology corporations and other organizations in health care technology, including but not limited to equipment, access charges, training and applied research.  Section 3 To meet the expenditures necessary, the state treasurer shall, upon request of the governor, issue and sell bonds of the commonwealth to an amount specified by the governor from time to time, not exceeding, in the aggregate, one hundred million dollars. MA S 1238Joint Committee on Health Care Financing 06/26/2007Relates to controlling health care costs and improving quality.The executive office of health and human services shall prepare and implement a plan to make MassHealth and Commonwealth Care leaders in the use of advanced health information technology and electronic health records. The plan shall be developed in consultation with the Massachusetts e-Health Collaborative, the Massachusetts Health Data Consortium, MassPRO, consumer health organizations, consumer privacy organizations, providers and others concerned about health information technology and electronic health records.  The secretary shall file a report detailing the findings, recommendations and implementation plan, along with any legislation needed to implement its recommendations, with the committee on health care financing and the committees on ways and means no later than 6 months after the effective date of this act. MA H 4141Enacted 7/12/2007Appropriates funds for fiscal year 20084000-0500.. no later than December 1, 2007, the office of Medicaid shall submit a Medicaid Transformation Grant, federal funding opportunity number HHS-2007-CMS-MTG-0010, to the Centers for Medicare & Medicaid Services CMS) to fund a MassHealth e-Prescribing pilot project to introduce electronic prescription writing (e-prescribing) to Medicaid providers for developing, piloting, evaluating and rolling out a real-time decision support solution that can be integrated into providers’ workflowMichiganMI S 248Pending 02/21/2007A bill to make appropriations for the department of community health and certain state purposes related to mental health, public health, and medical

services for the fiscal year ending September 30, 2008;Section 120 $10,000,000 to the Medical Services Administration for Health Information Technology Initiatives. MI S 1Enacted 10/01/2007Requests a federal waiver for incentives for Medicaid recipients.Section 105 (b)(4) The department of community health shall seek financial support for electronic health records, including, but not limited to, personal health records, e-prescribing, web-based medical records, and other health information technology initiatives using Medicaid funds. MI H 4344Pending 09/06/2007Executive budget bill for the Department of Community Health.Same as MI S 248. Public Act No. 7, MI S 404Enacted 05/07/2007Appropriations bill for the Department of Community Health.Section 103 (3) $7,250,000 to the Medical Services Administration for Health Information Technology Initiatives. MI S 511House Appropriations Committee 10/09/2007Supplemental Appropriations bill for 2006-2007Sec. 1763. In order to reduce healthcare costs, the department shall adopt an interoperable hub that provides secure aggregation and access to medication history data through the use of an existing, outsourced health information exchange infrastructure. The infrastructure will provide cross domain single sign-on allowing for realtime, data aggregation across disparate organizations and system. Funds appropriated in part 1 will be used to fund a risk adverse, budget-neutral 10-month production pilot in Southeast Michigan with a Michigan-based service provider.MinnesotaMN H 842Pending – CarryoverAppropriations bill for the Department of Health.   Establish a community e-health collaborative grant program.Health Information Technology. Of the health care access fund appropriation, $7,500,000 in fiscal year 2008 and $11,000,000 in fiscal year 2009 are to implement Minnesota Statutes, section 144.3345. Up to $750,000 each fiscal year is available for grant administration and health information technology technical assistance. This appropriation shall be included in the agency’s base budget for fiscal year 2010 only.

Section 9 (Sub. 3) In awarding grants, the commissioner shall give preference to projects benefiting providers located in rural and underserved areas of Minnesota which the commissioner has determined have an unmet need for the development and funding of electronic health records.  Grant funds shall be awarded on a three-to-one match basis. Grants shall not exceed $900,000 per grant. MN S 888Pending – CarryoverAppropriations bill for the Department of Health.   Establish a community e-health collaborative grant program.Same as MN H 842. Chapter No. 147, MN H 1078Enacted 05/25/2007Relating to state government; making changes to health and human services programsBy January 1, 2015, all hospitals and health care providers must have in place an interoperable electronic health records system within their hospital system or clinical practice setting. The commissioner of health, in consultation with the Health Information Technology and Infrastructure Advisory Committee, shall develop a statewide plan to meet this goal, including uniform standards to be used for the interoperable system for sharing and synchronizing patient data across systems. The standards must be compatible with federal efforts. The uniform standards must be developed by

January 1, 2009, with a status report on the development of these standards submitted to the legislature by January 15, 2008.

Subdivision 1. Account establishment. An account is established to provide loans to eligible borrowers to assist in financing the installation or support of an interoperable health record system. The system must provide for the interoperable exchange of health care information between the applicant and, at a minimum, a hospital system, pharmacy, and a health care clinic or other physician group. MN S 2, MN H 297Pending – CarryoverProposes an amendment to the Constitution to affirm state residents’ right to affordable health care; enacts other non-constitutional legislation to include electronic medical records.By January 1, 2015, all hospitals and health care providers must have in place an interoperable electronic health records system within their hospital system or clinical practice setting. The commissioner of health, in consultation with the Health Information Technology and Infrastructure Advisory Committee, shall develop a statewide plan to meet this goal The commissioner shall distribute the funds appropriated under this section to federally qualified health centers operating in Minnesota as of January 1, 2007. The amount of each subsidy shall be in proportion to each federally qualified health center’s amount of discounts granted to patients during calendar year 2006.Mississippi    MissouriMO S 577Enacted 07/02//2007Among other things creates a Healthcare Technology Fund208.975. 1. There is hereby created in the state treasury the “Health Care Technology Fund” which shall consist of all gifts, donations, transfers, and moneys appropriated by the general assembly, and bequests to the fund. The state treasurer shall be custodian of the fund and may approve disbursements from the fund in accordance with sections 30.170 and 30.180, RSMo. The fund shall be administered by the department of social services in accordance with the recommendations of the MO HealthNet oversight committee unless otherwise specified by the general assembly. Moneys in the fund shall be distributed in accordance with specific appropriation by the general assembly. The director of the department of social services shall submit his or her recommendations for the disbursement of the funds to the governor and the general assembly. MO H 11Enacted 06/27/2007Appropriations bill for the Department of Social Services and the Office of AdministrationFor the purpose of funding an electronic pilot project in one or more skilled nursing facilities in Greene County to study the cost effectiveness of electronic health records in long term care and the financial benefit to Missouri HealthNet From Nursing Facility Quality of Care Fund…. $450,000MontanaMT SJR 19Enacted 04/24/2007Relates to developing health information technology.A Joint Resolution of the Senate and the House of Representatives supporting the development of secure and confidential health information technology and exchange in local communities. Section (2) That the State of Montana support the funding of a demonstration project in specific communities throughout the state as developed by the health information task force.Nebraska    Nevada    New Hampshire    New JerseyNJ A 4044Passed Assembly in Senate Health, Human Services and Senior Citizens Committee 06/14/2007New Jersey Health Information Technology Promotion Act; establishes New Jersey Health Information Technology Commission and provides for Statewide health information technology plan.The New Jersey Health Information Technology Commission provides funding for the ongoing development and maintenance costs of a Statewide health information system; receive and expend appropriations;

New MexicoChapter No. 2007-21, NM S 611Enacted 03/13/2007Making appropriations and authorizing expenditures by state agencies

twenty-five thousand dollars ($25,000) to purchase electronic health records software for the Mora valley community health center;New YorkNY A 3564Pending 04/20/2007Creates the Insurer fund for Underserved Neighborhood/Rural Area Development Corporation; provides that such corporation shall operate in accordance with a plan of operation.Section 1415 (b) Creates the insurer fund for underserved neighborhood/rural area development corporation to finance or facilitate the financing of projects, including the establishment and operation of health information technology. Chapter No. 54, NY S 2104Enacted 04/09/2007Appropriations to the Health and Mental Hygiene budget.For services and expenses of health information technology ….3,000,000 NY A 6509, NY S 4016Pending 03/13/2007Establishes a healthcare reinvestment fund suburban demonstration project; defines terms; creates an oversight committee; provides for distribution of funds and calculation of reinvestment fund payments; makes related changes.Section 1 While the state of New York is investing in the health care infrastructure of New York state in an amount of two hundred fifty million dollars a year for four years through the health care efficiency and affordability law of New Yorkers (HEAL-NY)  capital grant program, health insurers should likewise provide investment in the health care infrastructure of communities, particularly in the area of health information technology as health insurers are an immediate benefactor of health information technology.  The reinvestment funds shall be distributed to each general hospital located in the suburban region proportionally based on each general hospital’s reported inpatient discharges to the total of such inpatient discharges for all general hospitals located in the suburban region.  (B) An annual amount of sixty-seven million dollars shall be divided. NY S 4679Pending 04/20/2007Enacts the “Health E-Links New York Act” to develop an implement an interoperable health information technology infrastructure to improve the quality and efficiency of health care and the ability of consumers to manage their care and safety.Establishes a grant program to facilitate widespread adoption of interoperable health information technology.  Section 1004 (2) To develop a plan to create statewide RHIOs with defined functions, organizational structure, governance, and funding requirements and sources. NY A 8544, NY S 5428Assembly Ways and Means Committee 06/05/2007Amends the public health law and the public authorities law, in relation to cost allowances for strategic capital investments for technology infrastructure of certain home health care programs

3-B. Strategic capital investment allowances. (A) For annual rate periods on and after January first, Two Thousand Eight, in determining the proposed rate schedules for payments for certified home health agency services or services provided by long term home health care programs or AIDS home care programs, the commissioner shall include in such rates an allowance for costs incurred for strategic capital investments by such agencies and programs in information technology, medication management technology and other investments related to their technology infrastructure.  The purpose of such allowance shall be to improve the quality of care, improve the cost-effective operation of such agencies and programs and facilitate the fulfillment of the State’s health care goals.  Such allowance shall be factored in as a component of the rate schedule after, and shall not be subject to, the application of any adjustments, ceilings or limitations on such rate schedules.North Carolina    North DakotaND H 1021Enacted 05/02/2007Concerns the Information Technology Department; makes appropriations to defray expenses; creates a health information technology steering committee and the borrowing authority of the information technology department.Base level funding component appropriated to the information technology department.  Total all funds – Base level $108,907,227; Total general fund – Base level $ 9,972,837

OhioOH H 119Enacted 06/30/2007Appropriations BillSec. 3333.55. (A) The health information and imaging technology workforce development pilot project is hereby established. Under the project, in fiscal years 2008 through 2010, the Ohio board of regents shall design and implement a three-year pilot program to test, in the vicinity of Clark, Greene, and Montgomery counties, how a P-16 public-private education and workforce development collaborative may address each of the following goals:…

(2) Increase the number of students pursuing professional careers in health information and imaging technology upon receiving related technical education and professional experience, in all demographic regions of the state;Oklahoma    OregonOR S 329Enacted 06/28/2007Establishes Oregon Health Fund program; establishes Oregon Health Fund Board to administer program; requires Board to adopt enrollment procedures and defined set of essential health services; requires Board to contract with health plans licensed to transact business in state to provide coverage; requires certain persons to participate in program.SECTION 13.  (1) The Administrator of the Office for Oregon Health Policy and Research, in collaboration with the Oregon Health Research and Evaluation Collaborative and other persons with relevant expertise, shall be responsible for developing a plan for evaluating the implementation and outcomes of the legislation described in section 11 of this 2007 Act. The evaluation plan shall focus particularly on the individuals receiving health care covered through the state Medicaid program, the Oregon State Children’s Health Insurance Program and the Family Health Insurance Assistance Program and shall include measures of:…

(2) The administrator shall develop recommendations for a model quality institute that shall:…

(b) Provide leadership and support to further the development of widespread and shared electronic health records;

(c) Develop the capacity of the workforce to capitalize onhealth information technology;PennsylvaniaPA HB 700House Insurance Committee 04/03/2007Amends the Insurance Code. Reforms the health care system by providing for access to affordable health insurance coverage for previously uninsured individuals and for small businesses, ensuring that charitable health care institutions meet their community benefit requirements, imposing certain health information technology requirements on health care providers. Imposes penalties. Makes repeals.Section 7202. Establishes the Cover All Pennsylvanians (CAP) health insurance program.  Appropriations are a source of money for the CAP Fund.  Section 7402 (5) Up to $25,000,000 of the funds appropriated by the General Assembly for the Machinery and Equipment Loan Fund shall be made available for grants to health care facilities to assist in acquiring e-prescribing systems. Grants shall not exceed 50% of a hospital’s costs, which shall be approved by the Department of Community and Economic Development. PA SB 8House Health and Human Services Committee 06/20/2007Establishes the Medical Safety Automation Account. Provides grants to implement medical safety automation systems.The amount of a grant to any specific health care provider or regional medical safety automation organization under this program shall not exceed $1,000,000.  No less than 60% of available funds shall be used for grants to health care providers in counties of the fourth, fifth, sixth, seventh or eighth class. (F)  Matching funds. An applicant for a grant under this section shall provide matching funds in the amount of 100% of the amount of the grant. If the applicant is a community-based health care provider, the applicant shall provide matching funds in the amount of 50% of the amount of the grant. (3)(b) Annual reports describing the total amount of funds spent shall be delivered to the PA House of Representatives. Section 8 (9) Audits shall be conducted to ensure that funds have been used in accordance with the terms and standards adopted by the department.Rhode Island    South Carolina    South Dakota    Tennessee    TexasTX H 1066Enacted 06/15/2007Relates to electronic health information, electronic health records; creates the Texas Health Service Authority Corporation.Establishes the Texas Health Services Authority as a public-private collaborative to implement the state-level health information technology functions identified by the Texas Health Information Technology Advisory Committee Sec. 182.106.(a) The corporation may be funded through the General Appropriations Act and may request, accept, and use gifts and grants as necessary to implement its functions. TX S 10Enacted 06/14/2007Relating to the operation and financing of the medical assistance program and other programs to provide health care benefits and services to persons in this state.Section 3 “(b) To be eligible for money from the pool under this section, a hospital or county must use a portion of the money to implement strategies that will reduce the need for uncompensated inpatient and outpatient care, including care provided in a hospital emergency room. Strategies that may be implemented by a county or hospital, as applicable, include:… (2) creating health care systems efficiencies, such as using electronic medical records systems.”Utah    VermontAct No. 27 VT H 380Enacted 05/16/2007Amends hospital reporting and licensing requirements; provide hospitals with greater flexibility in how community needs assessments are conducted; eliminates mandatory biannual revisions to the health resource allocation plan; requires the public oversight commission to make recommendations regarding revisions to the health resource allocation plan.Section 9434 (c)  In the case of a health information technology project which requires a certificate of need under this section, expenditures for which are anticipated to be in excess of   $30,000,000, the applicant first shall secure a conceptual development phase certificate of need, in accordance with the appropriate standards and procedures, which permits the applicant to make expenditures for architectural services, engineering design services, or  any other planning services  , as defined by the commissioner,  needed in connection with the project. Expenditures may be made in preparation for obtaining a conceptual development phase certificate of need, which expenditures shall not exceed $1,500,000 for non-hospitals or $3,000,000 for hospitals. Act No. 70, VT H 229Enacted 06/05/2007Makes corrections and clarifications to the 2006 Health Care Affordability Act and related legislation.(a) The commissioner shall facilitate the development of a statewide health information technology plan that includes the implementation of an integrated electronic health information infrastructure for the sharing of electronic health information among health care facilities, health care professionals, public and private payers, and patients.  The plan should recommend funding mechanisms for the ongoing development and maintenance costs of a statewide health information system. (c)(1) The commissioner shall contract with the Vermont information technology leaders (VITL), a broad-based health information technology advisory group. (i) VITL is authorized to seek matching funds. Act No. 71, VT H 531Enacted 06/05/2007Establishes outreach and enrollment principles for Catamount Health and state benefit programs; Establishes the rural health alliance.  Requires that all primary care providers participating in the project shall use health information technology.Section 7(d) For fiscal year 2008, the department of health shall provide a grant to the Vermont rural health alliance for the early implementation projects described in this section upon the approval by the commissioner and upon receipt of $185,000.00 by the alliance of federal grant or other matching funds.VirginiaChapter No. 847, VA H 1650Enacted 04/04/2007Appropriates public revenuesZ.1. Out of this appropriation, $4,698,113 the second year from nongeneral funds shall be used to develop and implement a system of electronic medical records, including any necessary system upgrades, for individuals receiving services at state mental health and mental retardation facilities. The Department of Mental Health, Mental Retardation and Substance Abuse Services shall collaborate with the Secretary of Technology to pursue a multi-source procurement. Any agreement signed by the department for health information technology or a health information technology system for the retrieval, storage, or exchange of health information shall be consistent with federal standards for the electronic exchange of health information and include a provision to ensure interoperability.WashingtonChapter 114, WA S 5640Enacted 04/18/2007Authorizes tribal governments to participate in public employees’ benefits board programsThrough state health purchasing, reimbursement, or pilot strategies, promote and increase the adoption of health information technology systems, including electronic medical records. Chapter 259, WA S 5930Enacted 05/02/2007Provides high quality, affordable health care to residents based on the recommendations of the blue ribbon commission on health care costs and access.Authorizes an evaluation of the impact of the use of shared decision making with decision aids, including the use of preference-sensitive health care services selected for the demonstration project and expenditures for those services.  Establishes demonstration projects, which as a condition of participating in the demonstration project, a participating practice site must bear the cost of selecting, purchasing, and incorporating the chosen decision aids into clinical practice. WA S 5423Pending – CarryoverSeeks to improve the quality of health care through the use of health information technologies.

1) Subject to the limits in this section, an eligible person is authorized a credit against the tax due under this chapter for the acquisition of health information technologies certified as eligible for credit by the health care authority as provided in RCW 41.05.021. Chapter No. 2007-522, WA H 1128Enacted 05/15/2007Makes appropriations for 2007-2009(4) $1,012,000 of the general fund — state appropriation for fiscal year 2008 and $338,000 of the general fund — state appropriation for fiscal year 2009 are provided solely for an evaluation of the information technology infrastructure capacity for institutions operated by the department of social and health services, department of veterans affairs, and department of corrections. The evaluation will detail the status of the participating institutions’ infrastructure and recommend an improvement strategy that includes the use of electronic medical records. The department shall report back to the appropriate committees of the legislature on its findings by January 1, 2009.West Virginia    WisconsinWI S 40Conference Committee 10/23/2007 Relates to state finances and appropriations. Constitutes the Executive Budget Act of 2007 Legislature.20.250 (1) (e) Implements principal repayment and interest. A sum sufficient to reimburse for the payment of principal and interest costs incurred in aiding the construction of a basic science education facility and in aiding the funding of a health information technology center.Wyoming