Federal Manager's Daily Report

The Department of Health and Human Services faces legal barriers,

related to fraud and abuse precautions, to the adoption of its proposed

health IT system, and its efforts to address them have so far been limited

in scope, the Government Accountability Office has said. GAO said various

experts it interviewed “indicated that beyond legal issues related to the

privacy and security of health information, there are various laws — some

specifically health-related and some not — that present barriers to the

adoption of health IT.


For example, the laws involve antitrust, federal income tax, intellectual

property, malpractice and state licensing. Laws related to fraud and abuse

include the Physician Self-Referral – Stark — law and the Anti-kickback

statute, which GAO says impede arrangements between providers such as

sharing IT resources.


Because the laws do not specifically address health IT arrangements, there

is some uncertainty among health care providers as to what would result in

violations of the laws, so there is some reluctance to invest in health IT,

according to GAO-04-991R.


Experts it spoke with felt HHS had not addressed the legal issues enough

to reassure providers. HHS has 19 health IT initiatives, some of which

are designed to provide overall leadership and coordination for health IT

across HHS, other federal agencies, and other public and private sector

organizations, and collectively represent $228 million in fiscal 2004, said GAO.

It said the majority of initiatives and funding are for health IT programmatic

activities and grant programs to support the development of standard clinical

terminologies and fund demonstrations of health information systems.