Negotiating contracts for vendor-financed purchases of EHR systems. Providers face extraordinary challenges securing financing for HIT projects, especially ones required to capitalize on ARRA incentives.
In this economic climate, healthcare providers may face extraordinary challenges securing financing for health IT projects, especially ones required to capitalize on the incentives in ARRA. Vendor financing may be the best option for many such providers. While such arrangements may often seem a win-win for both parties, providers should be aware of the many potential pitfalls inherent in vendorfinanced deals, including: 1.) additional pressure from vendors to accept their standard contractual terms and conditions because vendors have much more leverage if they are also the creditor in the transaction; 2.) failing to obtain necessary warranties and representations from vendors that their systems will comply with all relevant requirements under ARRA and will permit the provider to achieve meaningful use; and 3.) dealing with problems arising if the vendors' product fails to achieve certification, or the provider fails to achieve "meaningful use" in a timely manner.
Fox
Steven J
SJ
Office of Post & Schell, PC, Washington, DC, USA. sjfox@postschell.com
Schick
Vadim
V
D057171:American Recovery and Reinvestment Act; D002202:Capital Financing / Q000191:economics / Q000331:legislation & jurisprudence*; D032982:Contracts; D004059:Diffusion of Innovation; D016347:Medical Records Systems, Computerized / Q000191:economics*; D009042:Motivation; D017008:Negotiating; D011682:Purchasing, Hospital / Q000191:economics*; D014481:United States