APR 23, 2009 4:26pm ET

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Rural Calif. RHIO Gets Tax Exempt Status

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The Internal Revenue Service has approved federal tax exemption status for the East Kern County Integrated Technology Association, a Tehachapi, Calif.-based regional health information organization.

The IRS, after years of inaction, recently started awarding tax-exempt status to health information exchanges and regional health information organizations. Other organizations that have received the exemption include CalRHIO in California and CareSpark in Tennessee. Getting the 501(c)3 not-for-profit status can aid HIEs and RHIOs in getting grant funding from corporations, foundations and other entities.

The East Kern County Integrated Technology Association, called EKCITA, serves a rural region about two hours north of Los Angeles. Members include a critical access hospital, six private practices, three rural health clinics and a medical group practice. It offers electronic health records and personal health records software, in addition to health information exchange services. The organization soon will launch a Web site at ekcita.org.

--Joseph Goedert

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Looking to build better care coordination, health systems are buying physician groups in droves. Making the deal work, however, requires careful management on the I.T. front.

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