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The Department of Health and Human Services (HHS) has announced a final rule aimed at discouraging health care providers from impeding access, exchange, or use of electronic health information. This rule has raised concerns from the American Hospital Association (AHA), which warned that it could negatively impact the financial stability of struggling hospitals.

Under the new rule, hospitals participating in the Medicare Promoting Interoperability Program could face significant penalties for engaging in information blocking. Specifically, these hospitals could see a 75% reduction in the market basket update. Critical access hospitals, on the other hand, could see a reduction in their reasonable costs from 101% to 100%. Clinicians in the Medicare’s Merit-based Incentive Payment System could receive a score of zero in the MIPS Promoting Interoperability performance category if found guilty of information blocking. Additionally, providers in accountable care organizations could be barred from participating in the Medicare Shared Savings program and may lose out on revenue they would have earned.

The AHA expressed disappointment with HHS’s decision to move forward with the rule despite receiving feedback from stakeholders. The association believes that the disincentive structure outlined in the final rule is excessive, confusing, and unfair. They fear that the rule could have unintended consequences for hospitals and providers, particularly those already facing financial challenges. The AHA called on HHS to reconsider its approach and work with stakeholders to find a more effective way to promote interoperability while protecting patients’ rights and maintaining financial stability for hospitals.

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