Are We Chasing the Carrot or Afraid of the Stick?

Posted on May 29, 2015 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 10 blogs containing over 8000 articles with John having written over 4000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 16 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

The other day SGC asked in my hospital EHR adoption chart post: “If there were no penalties for non-EHR adoption, what would that chart look like?”

For those that are too lazy to click over to that post to see the chart, it basically shows hospital EHR adoption being massively accelerated thanks to the government EHR incentive program. In fact, we’re approaching full adoption of EHR in the hospital space (worth noting is that the ambulatory provider space is lagging far behind that adoption). SGC asks the question about whether that adoption would have occurred without the penalties.

My personal experience is that most organizations appreciate the EHR incentive money and plan that in as part of their budgeting for an EHR, but that they were really much more motivated by the EHR penalties that would accrue if they didn’t adopt an EHR. So, I’d say that people are more afraid of the stick than they are motivated by the carrot.

This is probably more so the case because the penalties are going to exist in perpetuity. I think most hospital organizations believe (and I think rightly so) that the EHR penalties for not using an EHR are not going to stop. In fact, they could get much worse. Not to mention, other payers might start implementing similar penalties for non-EHR use as well.

What’s been your experience? Are the carrot or the stick more motivating to healthcare organizations?

Another related question would be, “If there had been no EHR incentive or penalties, what would the EHR adoption chart look like today?” That’s a topic for another blog post.