General Electric announced plans to set aside $100 million dollars in interest-free loans to doctors interested
in purchasing its EHR product.
According to the New York Times' “Bits”
blog, providers that choose the Centricity EHR system—either installed
on site or used via web—would benefit from the interest-free lending
program. The program is entitled ‘Stimulus Simplicity” (ah,
alliteration) and presents itself as a viable competitor in a growing market
place for EHR products.
The web option is a new one for GE and is reflective of the
trend to outsource IT hardware needs in order to save money and reduce hassle
for smaller practices and individual providers. According to the Times,
GE will begin to offer hosting programs for its clients, starting at $250-$500
a month for support services. This is an enticing offer for medical practices
looking for an affordable EHR option as reimbursement from the Fed does not
begin in 2012.
Additionally, GE is promising that its product will meet federal
‘meaningful use’ standards—not yet determined—that are
required in order to receive reimbursement.
GE is taking a leap of faith that its products will align
with federal goals. But it is a smart move—and one that a larger company can
afford to take in this climate. Interestingly, the move appears to be a one-up
on IBM; the software gaint offered a similar financing program to
GE in April of this year for IT purchases (stimulus related purchases), particularly
for providers located in struggling rural areas. However, the move by GE is “more tailored”
and refined, specifically responding to the meaningful use
worries of its consumers and focused on EHR products.
GE is using its “no-interest” financing offer as a platform to announce
the launch of its own venture into web-based hosting, tacking on additional ownership
to the software deal. Gaining share in this marketplace will place GE at
the center of the health IT movement where hospitals, providers and the
government alike will be looking to dump dollars many years into the future.
More on EHRs:
[+] EHRs and national security—is the government snooping?
[+] Choose your electronic health record carefully
[+] Doctors aided by emerging offshoot of EHR software