Fitch: Meaningful Use Payments Masking 'Anemic' Revenue Growth

Although Meaningful Use payments will dry up when the incentive program ends, the benefits of electronic health records systems--including quality and efficiency gains--will mitigate the loss, according to global ratings agency Fitch. But the fact that the funds are non-recurring makes makes it tricky to predict the financial impact of EHRs. 

Meaningful Use funds could mask otherwise "anemic revenue growth" over the next four to five years. "Only hospitals that are already financially strong will be able to afford the high cost investment in EHR technology," the agency stated. "Hospitals unable to demonstrate Meaningful Use by 2015 will be penalized through their Medicare reimbursement. We expect this to lead to a wider gap between higher and lower credits."