Technology in Nursing and Governmental Financing
Nursing is a dynamic field that constantly evolves. Advances in technology have brought new innovations, as well as new challenges for nurses. Technological advancements have revolutionized the way we live and work, and nursing will be no exception. Technological advances are driving the need for nurse-focused care and accelerating the pace at which health care information is changing quickly. The use of technology has also introduced new opportunities for government financing to support advanced technologies. This article will discuss how technological advancement driving increased government funding, Medicare payment reform, and private capital investments in nursing support accelerated adoption of high-tech nursing solutions across the healthcare industry.
Why is there increased government funding for nursing technology?
The healthcare industry is embracing technology to improve quality of care and drive revenue. Technological advancement is driving the need for nurse-focused care and accelerating the pace at which health care information is changing quickly. It has also introduced new opportunities for government financing to support advanced technologies. Expanding the availability of advanced technologies across the nation’s healthcare system has been a high priority for policymakers and health systems leaders. In response, the Centers for Medicare & Medicaid Services (CMS) created an Advanced Technology Improvement (ATI) program to encourage hospitals to invest in high-tech solutions to improve patient care. The program also provides funding for non-ATI solutions that meet criteria such as improving health outcomes or reducing cost. Another federal program, the Hospital Value-Based Incentive Program, has been launched in all 50 states with the goal of encouraging hospitals to invest in high-tech solutions to improve patient care. The Advanced Technology Program (ATP) helps hospitals and health systems improve their operations with technology, while the Hospital Value-Based Incentive Program (HVB) rewards hospitals with financial rewards for using technology to improve patient care.
Payment Reform
As the healthcare industry is embracing technology, payment reform is also creating opportunities for government financing. The Affordable Care Act (ACA) included a number of provisions that extend health insurance coverage to millions of uninsured Americans, encourage quality care, and implement cost controls that improve the sustainability of the nation’s healthcare system. The ACA established Medicare payment rates for inpatient and outpatient services and created a new payment model for physician payments that establishes a minimum payment for a service and gives providers the opportunity to earn additional “bonuses” based on quality of care. The law also created incentives and penalties for hospitals to reduce costs while improving the quality of care and reducing avoidable hospitalizations.
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Private Capital Investing
Healthcare systems have increasingly turned to private financing tools, including business- and investment-backed loans, to bridge the gap between revenue and expenses. As the healthcare industry has embraced technology, the need for financing has increased as capital expenditures increase to support advanced technologies. Healthcare institutions have also leveraged partnerships with private equity firms to gain access to capital. For example, Cigna Health and Life (CHL), a partnership between Cigna Corporation and Life Insurance Company of America, leveraged the private equity model to obtain financing. This partnership was a first for the health insurance industry and is unique in that it did not involve a middleman, including a bank or insurance company underwriter.
Medicare Payment Reform
Technological advancements have also led to a surge in Medicare hospital costs relative to other payers, which has increased pressure to reduce spending. Medicare payments have increased significantly, which has contributed to rising healthcare costs. In response to this challenge, the Centers for Medicare & Medicaid Services (CMS) has implemented a series of payment reforms designed to encourage hospitals to deliver high-quality, efficient care. These payment reforms are designed to encourage hospitals to improve their use of health information technology, keep costs under control, and reduce the growing burden of readmissions.
Healthcare Data Exchange and Standards
Advanced technologies have also driven the need for interoperable health information. The growing volume of health data poses a major challenge for health systems. Current health data standards are not adequate to facilitate the flow of data between sources and address the interoperability needs of the entire health care system. To address this challenge, the Healthcare Information Exchange (HIE) program was created to standardize the exchange of health information and promote the use of health information technology (IT). The HIE program was established under Title V of the Health Information Technology for Economic and Clinical Health Act (HITECH). Under HITECH, the National Committee for Quality Assurance established the National Committee on Health Information Technology (NCHITs) to promote the use of health IT. The National Committee on Quality Assurance (NCQA) is responsible for the certification of health IT products as meeting certain standards. The National Committee on Quality Assurance is a third-party organization that certifies the quality of health IT products.
The Future of Nursing Technology in America
The above scenarios paint a promising future for the adoption of advanced technologies in nursing. The healthcare industry is embracing technology to improve quality of care and drive revenue. Technological advancement is driving the need for nurse-focused care and accelerating the pace at which health care information is changing quickly. It has also introduced new opportunities for government financing to support advanced technologies. The future of nursing technology in the U.S. will rely on the ability for nurses and physicians to use technology to deliver high-quality care. These professionals will need to collaborate with technology vendors, healthcare systems, and stakeholders to create a patient journey that optimizes clinical outcomes. Nurse-Centered Care, patient engagement, timely access to care, and evidence-based decision making will drive the adoption of advanced technologies in the future.
