News From the
Committee on Small Business
Nydia M. Velázquez, Chairwoman

For Immediate Release                                                                               CONTACT:  Press Office
July 31, 2008                                                                                                                  (202) 226-3636

Committee Examines Costs and Challenges of Electronic Health Records to Small Medical Practices 

To see video of today’s hearing, click here.
To see witness testimony click here.

WASHINGTON, D.C. — Small medical providers are the backbone of the nation’s healthcare system, providing high quality services to a wide variety of patients, including vulnerable and underserved communities in rural areas and nursing homes.  Advances in health information technology (IT) hold the potential to improve the care they provide, but a lack of easy to use, cost effective systems tailored to meet their unique requirements are blocking widespread use.  The House Committee on Small Business held a hearing today exploring needed changes to electronic health records implementation to aide small medical practices ensure affordable care and patient confidentiality.

“The majority of Americans rely on small practitioners so it only makes sense that they should benefit from advances in information technology to better serve their patients,” said Chairwoman Velazquez. “And yet only a handful of them use electronic health records because of the high costs, privacy concerns, and manpower demands associated with these systems.”

Despite the fact that 80% of all out-patient visits take place in practices with ten or fewer doctors, a recent study shows only 13% of small and solo practitioners have basic electronic health record (EHR) systems.  Compared to their larger counterparts who are three times as likely to use EHR systems, physicians in small practices with limited resources are slow to adopt them because of high costs associated with their installation, monthly maintenance, and hidden costs that place a strain on their limited resources. 

“In the current economic climate, many small providers are struggling to stay afloat to serve the communities across the country that depend on them for their care,” Chairwoman Velazquez said. “Obviously there are enormous gaps in putting technology to work in our health care system.  We cannot afford to fail to recognize the unique needs of small practices and their patients.”

Witnesses told the committee that legal and privacy concerns also present barriers to more wide-spread use of electronic health records.  This is particularly true for specialty practices who cannot find health IT products specifically designed for them to meet their needs to protect patient records under the Health Insurance Portability and Accountability Act (HIPPA).  They urged the committee to provide financial incentives to promote health IT use, and to strengthen laws protecting health record security.

“When it comes to medical services, quality is what matters—not size.  Our small providers offer quality personalized care, and it is critical that we help them adopt health IT systems that meet their unique needs,” said Chairwoman Velazquez.  “Already we’re developing public-private partnerships to assure a more efficient and effective system, but we must achieve reforms that promote access and lower costs if we are going to have an efficient e-health regime that protects privacy and works for everyone.”

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