Small Business Health Information Technology Financing Act

Floor Speech

BREAK IN TRANSCRIPT

Mr. GRAVES. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise today in support of the request to suspend the rules and pass H.R. 3014, a bill to provide financial assistance in the form of loans to install health information technology systems.

Two weeks ago, there was significant disagreement about the health care reform bill offered by the Democrats. Those concerns included the cost impact on small businesses and whether the bill actually will improve the efficiency and efficacy of the health care system at a time of skyrocketing health insurance premiums. One way to improve the efficiency of the health care system is for physicians and other providers of health care, such as pharmacists, physical therapists, and providers of durable medical equipment, to install health information technology systems.

Electronic medical records have proven to be an effective tool in reducing medical errors and eliminating unnecessary medical procedures. However, health information technology systems are extremely expensive, particularly for the numerous small businesses such as solo physician practitioners in rural areas to purchase and install such systems.

H.R. 3014 addresses this issue by providing loan guarantees by the Small Business Administration to health care providers that install health information technology systems. The loan process will operate in a manner identical to that of the SBA's 7(a) loan guarantee program. Thus, fees will be charged to borrowers and lenders as they are in the 7(a) loan program.

Testimony before the committee revealed that it takes anywhere from 1 to 3 years for physicians and other health care providers to reach the level of efficiency that they operated with under handwritten systems. Recognizing this, H.R. 3014 authorizes a deferral period in repayment of 1 to 3 years. While there is an additional cost associated with such deferral, this small incentive will pay for itself many times through an increase in efficiency of the health care system without undertaking a government capture of the health care market.

Mr. Speaker, I reserve the balance of my time.

BREAK IN TRANSCRIPT

Source