HHS Promulgates New Regulations to Facilitate Adoption of Health Information Technology

August 7, 2006

On August 1, 2006, the U.S. Department of Health & Human Services ("HHS") promulgated final rules ("Final Rules") that will permit hospitals, physician practices and certain other organizations to donate electronic prescribing ("e-prescribing") and electronic health records ("EHR") technology and supporting services to physicians without violating either the federal physician self-referral ("Stark") law or the federal health care program anti-kickback law ("AKL"). Both Final Rules are a result of the Congressional mandate in the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 ("MMA") for the creation of a Stark law exception and an AKL safe harbor that would enable entities (such as hospitals) to encourage and assist physicians to embrace the use of e-prescribing technology. In promulgating the Final Rules, HHS elected to go beyond e-prescribing, providing immunity for the donation of EHR technology and services under certain circumstances, as well.

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