ONC Budget Includes a User Fee on HIT Vendors

The proposed 2014 budget for the Office of the National Coordinator for Health Information Technology includes $1 million from a new tax on health information technology vendors, but $1 million just starts the levy and revenue from the tax will be higher in coming years if enacted. VentureBeat first reported the fee.

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Comments (4)
We are already charged lots of money to become certified. We have to recertify each time the government changes the rules. We have to spend lots of time and money writing features that doctors don't want instead of spending the time and money writing features they request, and now they want to tax us on top of what we pay for certification? This is nuts.
Posted by Susan J | Monday, April 15 2013 at 4:47PM ET
I am a private citizen, a consumer of IT, and I am very concerned about the U.S. economy. Adding a HIT user fee to fund ONC represents a pattern of covering the governments failure to understand the cost of regulations supporting ACA (Obamacare). The shortsightedness of the authors of ACA and the associated regulations would result in insolvency of the enterprise in the private sector. In the unrealistic world of government, officials think they can go to the well again and again to cover poor judgement and incompetency. Of course, this could have been deliberate so the ACA bill could be justified as costing under 1 trillion dollars to implement (of course it included 10 years of revenue and 5 years of ongoing operating costs). So much of the anticipated expense was off book as well such as new hires for the IRS.

Amazing!!!! but expected.
Posted by embambt | Monday, April 15 2013 at 7:24AM ET
Not insanity..

My take is that it's all part of a perhaps unintentional plan to consolidate healthcare IT down to a handful of large vendors who will outsource all of their circa 1970 ongoing "development" (i.e focused entirely on MUnn certifications).

Just as manufacturing is finding it very difficult these days to re-shore, once the cycle completes in healthcare, the only way to acquire IT resources will be to grant work visas to foreigners.

Oh, by the way, end customers should reasonably look to a something like at 300% increase in healthcare software following industry consolidation

They probably would be wise to hire staff now to help them avoid clawbacks on MU incentives when the time comes for agencies to demonstrate they are making meaningful use of the meaningful use software.

Now is a good time to short sell shares you have in healthcare software companies. (i.e. the ones that are being sold short by the proposed new fees on top of fees).

Posted by Karl Walter K | Friday, April 12 2013 at 2:38PM ET
And the insanity continues! Is it not bad enough that it costs us hundreds of thousands of dollars to write all this stuff that the doctors think is worthless? Is it not enough that we get taxed tens of thousands of dollars getting certified for a worthless and poorly run program? Why not just pay the vendors for the work we are forced to do and be done with it. This entire program could have been done 10 times cheaper and with much better results but no we get a government disaster. So now we need to tax the vendor becuase he is not suppressed enough? Unbelievable!!!!
Posted by eonsys | Friday, April 12 2013 at 1:43PM ET
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