COAG warned of need for e-health incentives

Beverley Head
Thursday, 12 May 2011 16:15

IT Policy - Government Tech Policy

The Federal Government and States have been warned that doctors and other health professionals will require financial incentives to encourage them to fully participate in the Government's e-health plans and prepare for the introduction of the Personally Controlled Electronic Health Record (PCEHR) according to the e-health transition authority Nehta.

According to Dr Mukesh Haikerwal, a general practitioner and national clinical lead for Nehta; 'The need for incentivisation is a given and was in the business case for COAG'. While this week's Federal Budget did not allocate additional funds to pay doctors to update their IT systems, it didn't strip money away from the e-health programme either, which has already been funded to the tune of $467 million.

Asked where the financial incentives could come from Dr Haikerwal told iTWire; 'Some can come from the $467 million or from other appropriations.'  Nehta will have to move quick smart to get an incentive programme up, as the $467 million allocated thus far is supposed to be used by June 2012.

Speaking at an Australian Information Industry Association healthcare briefing in Sydney today, Dr Haikerwal was part of a panel discussion examining the PCEHR, and the preparedness both of the health sector and ICT industry to implement and use the records.

Bruce Pederson, consulting director for the Checkley Group, said that to date NSW was the furthest along in terms of implementing health IT systems.

But Adam Powick, managing partner at Deloitte warned that there was still a long road ahead and that; 'There is no industry with a greater need for new IT than health which is 20-30 years behind other sectors.' He said that to date; 'Providers have found it easier to spend money on everything but IT.'

That however may be changing. A report released this week by Ovum found that 42 per cent of Australian hospital CIOs will increase spending on IT this year - 22 per cent significantly increasing their IT budgets.

Lessons from the UK debacle? read on