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IBM Financing Agreements With Electronic Healthcare Record Providers Shatter Barriers To Health IT Adoption
Date:12/22/2009

tcomputer.com/">SCC Soft Computer are joining the growing ranks of EHR providers that are leveraging IBM Global Financing for its competitive-rate financing for their client-hospitals, labs and medical practices. Today, IBM Global Financing is working with some 40% of the top vendors of acute care EHR systems.

While many clients understand the potential benefits EHRs hold for safer, cheaper and more efficient healthcare, several unanswered questions remain. The Obama Administration through the American Recovery and Reinvestment Act is offering up billions of dollars in federal spending and incentives to encourage EHR adoption. Lacking is a timeline for reimbursements or a way to precisely demonstrate effective and meaningful use.

The result is a financing gap: the time between when a hospital, lab or medical practice must shell out millions of dollars to introduce the system into their process and the time it takes for federal funds to materialize and for practice and hospital administrators to be repaid. This breach is especially difficult for smaller community hospitals and medical groups, under greater pressure to manage costs.

"Customers of electronic healthcare records solutions soon realize that while health IT technology is necessary, it's also expensive," said Richard Dicks, general manager for North America, IBM Global Financing. "Costs have today become a non-technological barrier to health IT adoption. It's a chicken and egg scenario facing medical providers. Many are waiting for government funding working its way through the system, but need the benefits of the technology today. Technology financing helps speed up implementation in a more cost effective manner."

According to IT analyst firm Ovum, with the addition of Siemens Healthcare, Lavender and Wyatt and Healthcare Management Systems, IBM Global Financing has strengthened its already leading position as financier to health IT vendors in the marketplac
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