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Highmark Inc. Moves Forward With Funding for Physician Adoption of Health Information Technology

Saturday, June 7, 2008 General News
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PITTSBURGH, June 6 Highmark Inc. announced today that itis contributing $29 million to help physicians acquire ePrescribing/eHealthRecord technology for their practices.
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This initiative is an alternative to a similar program Highmark announcedin 2005 in which the company contributed significant funding to promote theadoption of health information technology by physicians. Highmark contributedthe funds to The Pittsburgh Foundation to establish the Highmark eHealthCollaborative, a supporting organization of the foundation, to fund grants tophysicians to acquire electronic technology with ePrescribing and electronichealth records capabilities.
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In order to disburse funds to physicians, the collaborative was requiredto obtain 501(c)(3) tax-exempt status from the Internal Revenue Service. TheIRS has been conducting a lengthy review of this and other initiatives thatsupport the adoption of health information technology by physicians and hasnot yet rendered an opinion as to the tax exemption.

"Due to the delay concerning tax-exempt status for the Highmark eHealthCollaborative, the Highmark Board of Directors decided to approve funding tosupport physicians directly from Highmark instead of through thecollaborative," said Dr. Kenneth Melani, Highmark president and chiefexecutive officer. "Under this model, tax-exempt status is not required beforefunds can be allocated. Highmark will directly provide the funds used to helpfinance electronic health solutions for Highmark network physicians in ourservice area. We hope to be able to begin administering grants to physicianslater this summer."

Application information from physicians seeking health informationtechnology funding that was sent to the Highmark eHealth Collaborative will beprovided to Highmark, and grant requests will be considered based on the orderin which they were received. The grant application process, in whichapplications have been accepted during the past two-and-a-half years, is nowclosed.

"Through this initiative, sufficient funding will be available to meet thelarge number of requests previously received from physicians," said Melani.

Highmark will pay up to 75 percent of the cost for a physician's office toacquire, install and implement an electronic technology system, up to amaximum of $7,000 per physician, with the physician's practice to pay theremaining balance.

By eliminating handwriting interpretation and administrative workassociated with paper processing, integrated electronic technology withePrescribing and electronic health records capabilities can help ensurepatient safety and reduce medical errors and expenses. Such technology systemscan also indicate medications that could adversely interact with other drugs.

Highmark considers its initiative to be a critical step toward fullutilization of electronic health records and the facilitation of healthinformation exchanges that will improve access to patients' medical histories,including medications, test results and care-management programs.

About Highmark Inc.

As one of the leading health insurers in Pennsylvania, Highmark Inc.'smission is to provide access to affordable, quality health care enablingindividuals to live longer, healthier lives. Highmark serves 4.6 millionpeople through the company's health care benefits business.

SOURCE Highmark Inc.
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