Mandate for Reform: ARRA and Its HITECH Provision

ARRA and its important HITECH provision were passed into law on February 17, 2009. Commonly referred to as the “Stimulus Bill” or “Recovery Act,” the landmark legislation allocated $787 billion to stimulate the economy, including $147 billion to rescue and reform the nation’s seriously ailing healthcare industry. Of these funds, $19 billion in financial incentives were earmarked for the relatively short period of five years to drive reform through the use of advanced healthcare IT and the adoption of EHRs. As noted in this chapter’s introduction, the incentives were intended to help healthcare providers purchase and implement healthcare IT and EHR systems, and the HITECH Act also stipulated that ...

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