At a time when physicians and hospitals across the country are scrambling to purchase an EHR that will meet Phase 1 meaningful use criteria, a funny little quirk is lurking in the background. What could that be? You guessed it – a tax on the purchase of these EHRs everyone is so clamoring to buy. This possibility is easily overlooked now as the frenzy of hope, doubt and fear are pervasive, but the healthcare reform bill (remember that?) has a provision, a tax, built in of 2.3% on “medical devices”.
The verdict is still out on whether or not an EHR is technically a medical device, but the FDA would like for it to be. And if it turns out that EHRs fall into this category, there will be taxation; money that the government believes to be its own and which will ultimately be passed around and add to the cost for everyone. A few dollars here, a few more there, and nobody gets hurt. After all, the government brought this market to the people. Why, we should be grateful. Wrong.
This EHR movement would have happened independently of any government intrusion or stimulus money. And if it is the right time, then why are so many physicians and facilities opting out and willing to bear the penalties for non-participation? With the metric tons of inherent waste within our nations healthcare system, stimulus money is paltry change by comparison. But let something become successful and “blammo” – tax it, it can afford it. Nausea. Now, NOW there is the distinct possibility that stimulus funds, offered as incentive to ramp up an EHR, are themselves taxable!
At what point to we get to say “Uncle”?
