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State Health Information Exchange Grant Awards Announced

Today Department of Health and Human Services (HHS) Secretary Kathleen Sebelius announced approximately $800 million in economic stimulus grant awards for advancing the widespread adoption and meaningful use of health information technology (HIT), as well as, providing funding to train the health care workforce. $375 million has been awarded to the first round of 32 non-profits to support the development of regional extension centers (REC). RECs will provide technical assistance to providers as they work towards implementing the meaningful use of electronic health records (EHRs). Forty states agencies and State Designated Entities (SDEs) received awards in the first round of health information exchange (HIE) grant funding which totaled $386 million. Additional HIE and REC awards are expected to be announced in the near future. In addition, Department of Labor (DOL) Secretary Hilda Solis announced the $227 million job training portion, which is expected to train 15,000 people in health IT related job skills and lead to the creation of 10,000 new jobs. The grants will support 55 separate training programs in 30 states.

States have four years, from 2010 to 2013 to utilize HHS grant funding to build capacity for exchanging health information through an interoperable HIE network. State matches start in 2011. Below is the first round of HIE grant recipients:

  • Alabama Medicaid Agency- $10,564,789
  • Arizona Governor's Office of Economic Recovery- $9,377,000
  • Arkansas Department of Finance and Administration- $7,909,401
  • California Health and Human Services Agency- $38,752,536
  • Colorado Regional Health Information Organization- $9,175,777
  • Delaware Health Information Network- $4,680,284
  • Government of the District of Columbia- $5,189,709
  • Georgia Department of Community Health- $13,003,003
  • Office of the Governor (Guam)- $1,600,000
  • The Hawaii Health Information Exchange- $5,602,318
  • Illinois Department of Health Care and Family Services- $18,837,639
  • Kansas Health Information Exchange Project- $9,010,066
  • Kentucky Cabinet for Health and Family Services- $9,750,000
  • State of Maine, Governor's Office of Health Policy & Finance- $6,599,401
  • Massachusetts Technology Park Corporation- $10,599,719
  • Michigan Department of Health- $14, 993,085
  • Minnesota Department of Health- $9,622,000
  • Missouri Department of Social Services- $13,765,040
  • Nevada Department of Health and Human Services- $6,133,426
  • New Hampshire Department of Health and Human Services- $5,457,856
  • Lovelace Clinic Foundation, New Mexico- $7,070,441
  • New York eHealth Collaborative Inc. - $22,364,782
  • Commonwealth of NMI, Department of Public Health- $800,000
  • North Carolina, Department of State Treasurer- $12,950,860
  • Ohio Health Information Partnership LLC- $14,872,199
  • Oklahoma Health Care Authority- $8,883,741
  • Pacific Ecommerce Development Corporation (American Samoa) - $600,000
  • State of Oregon- $8,579,992
  • Commonwealth of Pennsylvania, Governor's Office of Health Care Reform- $17,140,446
  • Oticina del Gobernador La Fortaeza (Puerto Rico) - $7,770,980
  • Rhode Island Quality Institute- $5,280,000
  • State of Tennessee- $11,664,580
  • Utah Department of Health- $6,296,705
  • Vermont Department of Human Services- $5,034,328
  • Virgin Islands Department of Health- $1,000,000
  • Virginia Department of Health- $11,613,537
  • Washington Health Care Authority- $11,300,000
  • West Virginia Department of Health and Human Resources- $7,819,000
  • Wisconsin Department of Health and Family Services- $9,441,000
  • Wyoming Office of the Governor- $4,873,000

GovWin's Take:

The amount of HIT funding provided in the stimulus package is game-changing; funding will help states break through cost barriers, especially at a time when state budgets are tight. With federal momentum, significant funding, and aggressive timelines, states are going to move quickly, yet methodically, on their HIE initiatives. Contractors need to actively participate in HIE workgroups and attend HIT events as a way to strengthen relationships with states and better understand their plans for standardized system that meets their needs. In addition, in order to ready for the anticipated contracting opportunities, vendors should be engaging in marketing activities to position themselves for the market, hiring, and educating staff for upcoming HIE business opportunities.

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