Tax credits for EMRs

The new AMA policy aims to address cost concerns that have kept many physicians from buying health information technology.

Editorial. Dec. 10, 2007.

That the push is on for physicians to adopt electronic medical records is clear. The many health information technology bills in Congress, the newly announced Medicare EMR demonstration project, and large employers' and health insurers' IT and quality improvement initiatives leave no doubt.

Unfortunately, it is also abundantly evident that many doctors can't possibly pay for the technology that private payers and government agencies are increasingly asking them to embrace.

Recognizing the problem, American Medical Association delegates at their November Interim Meeting approved a policy calling on the Association to seek a full, refundable federal tax credit or equivalent financial mechanism to indemnify physician practices for the cost of purchasing and implementing clinical IT, including EMRs. An October/November AMA Member Connect survey of 4,800 physicians found that 79% of members support this approach.

Physician EMR adoption has been growing in the past few years, but widespread use would require financial help for doctors, especially physicians in solo or small practices.

About 12.4% of office-based physicians used a comprehensive EMR system in 2006, according to an October Centers for Disease Control and Prevention report based on the results of the National Ambulatory Medical Care Survey. That figure fell to 7.1% and 9.7% for solo and two-physician practices, respectively. By comparison, 26.6% of practices with 11 or more doctors used a comprehensive electronic system in 2006.