The executive summary of the recently published electronic prescribing implementation plan follows:
Pursuant to H.B. 1966, 81st Legislature, Regular Session, 2009, and the 2010-11 General Appropriations Act (Article II, Health and Human Services Commission, S.B. 1, Rider 51, 81st Legislature, Regular Session, 2009), the Health and Human Services Commission (HHSC) submits this update to the implementation plan submitted December 1, 2009, for electronic prescribing (e-prescribing) in Texas Medicaid and the Children’s Health Insurance Program (CHIP).
The goal of e-prescribing within the Vendor Drug Program (VDP) is to support adoption and meaningful use of e-prescribing across Medicaid and CHIP programs that will improve the quality, safety, and efficiency of health-care services provided under Medicaid and CHIP. With that in mind, HHSC has set and is on target to implement e-prescribing capabilities on February 1, 2011. By doing so, providers that opt to participate in the electronic health record incentive payment program will be afforded the opportunity to meet the e-prescribing meaningful use criteria.
The estimated cost and savings expected from e-prescribing are directly dependent upon increasing its use by prescribers. From 2008 to 2009 the percentage of prescriptions routed electronically for all providers in Texas increased from 3 percent to 10 percent and the percentage of providers routing prescriptions electronically also increased from 10 percent to 15 percent.
The total cost of an e-prescribing program in Medicaid and CHIP in fiscal years 2011 and 2012 is $935,342 all funds and approximately $436,000 general revenue. These costs include known contract costs for two stages of implementation and the estimated transaction costs. The estimated financial benefit to the state exceeds the estimated cost in fiscal year 2011, the first year of implementation. The estimated return on investment to the state as a result of e-prescribing for fiscal years 2011 and 2012 is more than $1.7 million. These cost and benefit estimates are based on certain assumptions directly related to provider adoption. Once the program becomes fully operational and provider adoption can be measured, actual program cost and benefit can be measured.
Electronic prescribing report: http://www.hhsc.state.tx.us/reports/2010/Electronic-Presribing-1110.pdf