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Hi Tech Act's Effects on Healthcare Costs

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Discuss the HITECH Act. Will this regulation increase or reduce overall healthcare costs? Why or why not?

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The solution discusses the HITECH Act's effect on healthcare costs.

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Health Information Technology for Economic and clinical health care commonly known as HITECH act is a legislation which was created with an aim of stimulating electric health records adoption as well as providing support to the existing technology within the United States. Back in the year 2009, the act was signed into law as a part of the American Recovery and Reinvestment act which was an electric stimulus bill.
The act requires that health care providers receive financial incentives which have the capability of providing a demonstration of the use of the electronic health records which have a meaningful use. From the year 2011 to the year 2015, electronic incentives were and are still being offered up to the year 2015 whereby penalties will be accrued in case demonstration of its use has failed. In addition to this, the HITECH act is known to establish a grant which is required for training centers for ...

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