Wednesday, June 6, 2012

Senate negotiations may drop healthcare IT grant funding from $5B to $3B

WASHINGTON – Senate wrangling over the weekend on a proposed $900 billion economic stimulus package has led to a $3 billion cut in proposed healthcare IT discretionary funding.

The Senate had been looking at spending $22 billion to $23 billion for healthcare information technology in the economic recovery package – including $5 billion originally allotted for funding that could include grants for providers to purchase healthcare IT.

Over the weekend, however, $2 billion was cut for healthcare IT federal discretionary funding.

The Senate says it may have the three Republican votes needed to pass its version of the stimulus package, but insiders say negotiations will be fierce before an expected final vote on Tuesday – and chances for passage may lessen the longer a vote is postponed.

Republican Sens. Susan Collins and Olympia J. Snowe of Maine and Arlen Specter of Pennsylvania have indicated they are likely to support the trimmed version of the Senate stimulus package, according to (italics) CQ Daily. (end italics)

Healthcare IT privacy activists are lobbying hard for privacy measures to be included in the package. "Privacy and security protections have to be meaningful and comprehensive or electronic health systems will never be trusted," said Deborah Peel, founder of Patient Privacy Rights.

Once the Senate passes its version of a stimulus package, it must be reconciled with the House version before it can be signed into law.

President Barack Obama hopes to have a bill passed before Feb. 13.

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