Vice President Biden, HHS Secretary Sebelius Announce Selection of 15 Health IT Pilot Communities through Recovery Act Beacon Community Program

Awards to help communities achieve meaningful health care improvements through technology, lay foundation for industry expected to support tens of thousands of jobs.

Washington, DC, May 4, 2010—Vice President Biden and U.S. Health and Human Services Secretary Kathleen Sebelius announced the selection of 15 communities across the country to serve as pilot communities for eventual wide-scale use of health information technology through the Beacon Community program. The $220 million in Recovery Act awards will not only help achieve meaningful and measurable improvements in health care quality, safety and efficiency in the selected communities, but also help lay the groundwork for an emerging health IT industry that is expected to support tens of thousands of jobs.

“These pioneering communities are going to lead the way in bringing smarter, lower-cost health care to all Americans through use of electronic health records. Because of their early efforts, doctors across the country will one day be able to coordinate patient care with the stroke of a key or pull up life-saving health information instantly in an emergency – and for the residents of these communities, that future is about to become a reality,” said Vice President Biden. “Thanks to the Recovery Act’s historic investment in health IT, we’re not only advancing the way health care is delivered in this country, we’re also building a whole new industry along with it – one that will shape our 21st Century economy for generations to come and employ tens of thousands of American workers.”

“The most important health care innovations are those that are designed and tested by providers and community leaders all across the country. Beacon Communities will offer insight into how health IT can make a real difference in the delivery of health care,” said Secretary Sebelius. “The Beacon Community Program will tap the best ideas across America and demonstrate the enormous benefit health IT will have to improving health and care within our communities.“

The selected Beacon Communities will use health IT resources within their community as a foundation for bringing doctors, hospitals, community health programs, federal programs and patients together to design new ways of improving quality and efficiency to benefit patients and taxpayers. Each Beacon Community has elected specific and measurable improvement goals in each of three vital areas for health systems improvement: quality, cost-efficiency, and population health. The goals vary according to the needs and priorities of each community.

For example, in Tulsa, Oklahoma, a community dealing with an epidemic of obesity and type 2 diabetes that has the highest rate of cardiovascular disease deaths in the nation, the award will help 1,600 physicians and other providers participate in a new community-wide health information system that will help them better monitor and improve care transitions as patients move from one care setting to another. The award is expected to help increase appropriate referrals for cancer screenings, increase access to care for patients with diabetes with telemedicine, and reduce preventable hospitalizations and emergency department visits by 10 percent for conditions that could be better handled in clinical settings, yielding a potential cost savings of $11M per year in the Tulsa area for taxpayers and patients.

Other communities will use their Beacon Community awards to provide better control of blood pressure for diabetic and hypertensive patients, improvements in care coordination and chronic disease management, reductions in preventable emergency department visits and re-hospitalizations, reductions in health disparities, better rates of immunization for children and adults, and better adherence to smoking cessation and appropriate cancer screening guidelines. The Beacon projects are expected to initially create dozens of new jobs in each community paying an average of $70,000 per year for a total of 1,100 jobs up-front, while accelerating development of a nationwide health IT infrastructure that will eventually employ tens of thousands of Americans.

Additionally, Beacon Communities will be expected to access existing federal programs that are working to promote health information exchange at the community level. Close coordination with the Regional Extension Center Program, State Health Information Exchange Program, and the National Health Information Technology Research Center (HITRC), will ensure lessons learned are shared for the benefit of all. Over time, they will also work to leverage other existing federal programs and resources that are working to promote health information exchange at the community level, including the Department of Defense’s and the Department of Veterans Affairs’ development of a Virtual Lifetime Electronic Record (VLER) for all active duty, Guard and Reserve, retired military personnel, and eligible separated Veterans.

“Communities will be expected to build on an existing infrastructure of interoperable health IT and standards-based information exchange to show the promise for health IT. The Beacon Communities will offer evidence that widespread adoption of health IT and exchange of health information is both feasible and improves care delivery and health outcomes. The lessons learned through the program will be a roadmap for other communities to achieve meaningful use on a community-wide basis,” stated David Blumenthal, MD, MPP, national coordinator for health IT.”

The Beacon Community awards are part of an overall $100 billion federal government investment in science, innovation and technology the Administration is making through the Recovery Act to spur domestic job creation in emerging industries and create a long-term foundation for economic growth. The program was significantly oversubscribed with over 130 applications submitted for the initial 15 awards. Today’s awards are part of the $2 billion effort to achieve widespread meaningful use of health IT and provide for the use of an electronic health record (EHR) for each person in the United States by 2014. An additional $30 million is currently available to fund additional Beacon Community cooperative agreement awards. An announcement to apply will be made in the near future.