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OMB will sharpen reviews of agency health IT spending

By FCW Staff
Published on August 25, 2005

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The Office of Management and Budget wants to coordinate health IT spending in a way similar to other management efforts, such as electronic rulemaking, grants management and software licenses.

For starters, OMB has directed CIOs to describe and justify their health IT investments in their Exhibit 300 budget documents.

Although OMB did not establish new requirements, agencies should detail current plans for putting in place adopted federal health data standards and implementing future standards. The budget submissions are due Sept. 12, said Karen Evans, OMB e-government and IT administrator.

“It underscores the importance for agencies to reflect in sufficient detail, through their exhibit 300 submissions, their activities and leadership in the area of health IT in relationship to implementation of presidential initiatives and the national strategic framework for health IT,” Evans said in a memo to senior IT managers.

OMB isn’t asking for more information as much as putting more governmentwide focus on it, said Health and Human Services Department CIO Charles Havekost.

“This business area is nothing new, although we haven’t had that business area reviewed” in health IT the same way other business areas have been reviewed, he said.

The memo follows a requirement from the administration’s agency 2006 budget pass-back that asked departments to redirect all health IT investments so they are consistent with the president’s health IT framework. OMB estimated that agencies spent about $5 billion on health IT systems in 2005, a government source said.

To supplement its review, OMB will consult with HHS’ Office of the National Coordinator for Health IT, which has planned for health IT investments and health data standards selection through its Federal Health Architecture efforts.

The review and consultation will help OMB determine if proposed health IT investments align with and contribute to the administration’s initiative for a national health IT infrastructure.

OMB already requires agencies involved in health care, such as HHS and the Veterans Affairs Department, to account for their health IT investments as they do other IT investments in their annual budget submissions.

Areas for cooperation

Agency details about health IT investments will be used to fill in and map the Federal Health Architecture. By providing more data, OMB will be able to identify where agencies can cooperate and integrate their health IT infrastructures, a process that will advance administration goals to improve care and efficiency while reducing costs.


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