Rhode Island To Contribute $6M Toward RHIO
http://www.ihealthbeat.org/index.cfm?Action=dspItem&itemID=123024
The Rhode Island General Assembly has approved a state budget, which includes $6 million to help finance the cost of developing a regional health information organization, American Medical News reports. The money is contingent upon funding agreements from other players who will benefit from the health information exchange.
The initial budget submitted earlier this year by Rhode Island Gov. Donald Carcieri (R) asked the state to borrow the full $20 million needed to build the network. However, lawmakers decided the state should not provide all of the funding because "there's a lot of financial benefit accrued to insurers ... and others should pay their proportional share," said Dr. David Gifford, director of the state's Department of Health.
The state determined the $6 million figure by estimating its "fair share" of the network's start-up capital cost at 30%, American Medical News reports. Rhode Island is seeking funding from insurers to help cover the cost of building the network and to provide the $2 million to $4 million in estimated annual operating costs. The RHIO will not launch for at least another year, according to Gifford.
Health insurers in Rhode Island, such as Blue Cross & Blue Shield of Rhode Island and United HealthGroup, have indicated a willingness to discuss contributing to the RHIO but noted that physicians also will benefit from the network, American Medical News reports. The Rhode Island Medical Society supports the measure. "We're not opposed to paying our fair share," said Steve DeToy, director of government public affairs for the group.
Rhode Island is optimistic that discussions with insurers and other players will be successful, according to American Medical News. Rhode Island's small population provides a "natural advantage" because the state can "get all the players in the health care arena to the table to work on the development of this type of network," said Jeff Neal, the governor's press secretary (Chin, American Medical News, 7/17).
The Rhode Island General Assembly has approved a state budget, which includes $6 million to help finance the cost of developing a regional health information organization, American Medical News reports. The money is contingent upon funding agreements from other players who will benefit from the health information exchange.
The initial budget submitted earlier this year by Rhode Island Gov. Donald Carcieri (R) asked the state to borrow the full $20 million needed to build the network. However, lawmakers decided the state should not provide all of the funding because "there's a lot of financial benefit accrued to insurers ... and others should pay their proportional share," said Dr. David Gifford, director of the state's Department of Health.
The state determined the $6 million figure by estimating its "fair share" of the network's start-up capital cost at 30%, American Medical News reports. Rhode Island is seeking funding from insurers to help cover the cost of building the network and to provide the $2 million to $4 million in estimated annual operating costs. The RHIO will not launch for at least another year, according to Gifford.
Health insurers in Rhode Island, such as Blue Cross & Blue Shield of Rhode Island and United HealthGroup, have indicated a willingness to discuss contributing to the RHIO but noted that physicians also will benefit from the network, American Medical News reports. The Rhode Island Medical Society supports the measure. "We're not opposed to paying our fair share," said Steve DeToy, director of government public affairs for the group.
Rhode Island is optimistic that discussions with insurers and other players will be successful, according to American Medical News. Rhode Island's small population provides a "natural advantage" because the state can "get all the players in the health care arena to the table to work on the development of this type of network," said Jeff Neal, the governor's press secretary (Chin, American Medical News, 7/17).
posted by Bob Coli, MD | 4:56 PM
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