Rhode Island moves toward statewide health information network

The state will pay part of the $20 million cost of building the electronic network, if others, including health plans, chip in.

By Tyler Chin, AMNews staff. July 17, 2006.

The Rhode Island General Assembly on June 24 approved a new state budget under which the state agreed to contribute $6 million to help finance the cost of building a regional health information organization, subject to certain conditions.

Under the terms of the measure, Rhode Island will kick in the money if other parties who stand to benefit from the electronic exchange of patient data also pony up. The state estimates the start-up cost for the network at $20 million.

The initial budget Republican Gov. Donald Carcieri submitted earlier this year to the Democrat-controlled Legislature called for the state to borrow the entire amount. However, as the budget made its way through chambers, the lawmakers felt that the state shouldn't have to pay for the whole cost because "there's lot of financial benefit accrued to insurers ... and others should pay their proportional share," said David Gifford, MD, MPH, director of the state's Dept. of Health.

Because studies have shown that insurers reap most of the benefit from physicians' using information technology, Rhode Island is looking primarily to insurers to pay their "fair share" not only of the cost of building the network but also of the $2 million to $4 million it estimates it will cost for annual operations, Dr. Gifford said. The state estimates its fair share of the network's start-up capital cost at 30%, which is how it came up with $6 million.