Efforts to reduce the U.S. budget deficit may threaten health IT companies' high stock prices if they delay meaningful use requirements for electronic health records, according to a Reuters report.
Plans to lower the deficit could include nixing meaningful use incentive payments, which could strike a blow to health IT vendors' stocks. "These companies trade at multiples above their growth rate. [The stocks] have very little room for disappointment and have to consistently exceed expectations on every metric," said Maxim Group analyst Anthony Vendetti in the report.
However, President Obama is not expected to cut incentives for adopting EHRs. In addition, a recent Citigroup survey found eighty percent of hospital executives believed current market volatility would not influence near-term health IT spending trends, according to the report.
Furthermore, some believe that a delay in requirements for Stage 2 of meaningful use could actually benefit healthcare providers by giving them more time to comply with Stage 1.
AHA Reminder: Nov. 30 Last Day Hospitals Can Attest for FY 2011 Medicare EHR Meaningful Use
CMS' Total Medicare, Medicaid EHR Incentive Payments Top $653M
Plans to lower the deficit could include nixing meaningful use incentive payments, which could strike a blow to health IT vendors' stocks. "These companies trade at multiples above their growth rate. [The stocks] have very little room for disappointment and have to consistently exceed expectations on every metric," said Maxim Group analyst Anthony Vendetti in the report.
However, President Obama is not expected to cut incentives for adopting EHRs. In addition, a recent Citigroup survey found eighty percent of hospital executives believed current market volatility would not influence near-term health IT spending trends, according to the report.
Furthermore, some believe that a delay in requirements for Stage 2 of meaningful use could actually benefit healthcare providers by giving them more time to comply with Stage 1.
Related Articles on Meaningful Use:
Blue Cross, Blue Shield of North Carolina, Allscripts to Provide EHRs to PhysiciansAHA Reminder: Nov. 30 Last Day Hospitals Can Attest for FY 2011 Medicare EHR Meaningful Use
CMS' Total Medicare, Medicaid EHR Incentive Payments Top $653M