Big stimulus bucks finally going to health IT

By | April 9, 2010, 9:55am PDT

Summary: The money will be matched by state and local agencies. It is designed to catalyze sales and hiring and training by private industry. Each dollar has a multiplier effect, both economically and in the media.

With the rules for health IT funding finally taking shape, the Department of Health and Human Services has moved into the second phase of its operation, handing out the dough.

The profile of HHS Secretary Kathleen Sibelius (right, from HHS) is being raised, and that of ONCHIT David Blumenthal lowered, as she promises her department will become a nationwide “help desk” for IT and reforms aimed at making health care more customer-friendly.

This week HHS has been quite busy on that front:

  • $267 million in HITECH stimulus is on its way to 28 non-profits for the creation of regional extension centers.  This brings the total number of centers across the country to 60, where doctors can get advice and help buying and installing gear.
  • $114 million in HITECH stimulus is going out for training programs at 16 colleges and junior colleges, and four research institutions for solving problems related to health IT adoption.
  • $162 million in HITECH stimulus is going out for the creation of statewide health information exchanges (HIE). With the new grants all 50 states and the territories will have received HIE grants.

A separate pool of money, $650 million, is going through HHS from the stimulus for community prevention programs.

Each one of the awards above resulted in local releases like this, and stories like this, about how local agencies and institutions are going to use the money wisely.

Some of the awards have already come in for criticism, such as this one to a PR firm that had done phony TV news stories for the Bush Administration. More such stories are bound to come up, about how some of this money is being wasted, or stolen.

But most such stories will take months to research and write. As the money filters down into states and communities, the cost of developing and producing those stories will also increase.

Of course, this is really just seed money. The money will be matched by state and local agencies. It is designed to catalyze sales and hiring and training by private industry. Each dollar has a multiplier effect, both economically and in the media. People are going to get jobs for months as a result of this week’s announcements.

The same thing happens with military spending, by the way. Whenever the government spends money on anything — police, defense, health — national news releases are followed by state and then local releases, each focusing on a different level of detail, showing the money going to individuals and companies.

The proof of the pudding is not in the eating but in the digesting. The eating is fun.

Kick off your day with ZDNet's daily e-mail newsletter. It's the freshest tech news and opinion, served hot. Get it.

Topics

Disclosure

Dana Blankenhorn

Dana Blankenhorn has been a journalist, writer and part-time futurist for over 30 years. At the present moment I run only a personal blog in addition to my ZDNet open source blog. DanaBlankenhorn.Com has the subtitle The War Against Oil. In the past I have used it to write about political history, e-commerce, personal matters, some ideas related to open source, and The World of Always On, which is the idea of using sensors, motes and RFID to turn WiFi links into platforms for applications which live in the air. My IRA account at Schwab holds a few tech shares, most notably some Intel and Applied Materials, but there are no open source companies in it. I don’t even own any CBS stock.

Biography

Dana Blankenhorn

Dana Blankenhorn has been a business journalist since 1978, and has covered technology since 1982. He launched the Interactive Age Daily, the first daily coverage of the Internet to launch with a magazine, in September 1994.

Talkback Most Recent of 8 Talkback(s)

  • Way to go
    Big bucks for health IT. Great, right? Oh, yeah, don't forget: Big bucks for the banks, big bucks for the auto makers, big bucks for the insurance industry, not to mention the unemployed, those without insurance, those who bought houses they couldn't afford, the green energy companies, GE, those who can't afford a cell phone, those states who can't manage their budgets, community organizers, and every leftist organization in the country.

    Its only paper, right? We can always print more.
    ZDNet Gravatar
    itpro_z
    9th Apr 2010
  • You prefer Hooverism?
    Seriously. We were in Great Depression
    situation. President Bush proposed the TARP.
    Much of that money has already come back. The
    stimulus was pure Keynesian economics, which is
    the alternative to Hooverism.

    And it seems to be working. You can't pay back
    any debt -- even that old debt from the wars --
    without an economy that's growing.

    As this one now is.
    ZDNet Gravatar
    DanaBlankenhorn
    10th Apr 2010
  • You call this growing?
    The latest unemployment figures show that we are still losing jobs, even with the large number of people hired for the census. Staring us in the face are the loss of jobs due to Obamacare, even more jobs lost when the inevitable tax increases roll in (carbon tax, energy tax, value added tax, new corporate taxes, just to name a few). Add to that the devaluation of the dollar due to massive overspending, and you have all the signs of a train wreck in the near future.

    And, please, stop bringing up Bush to support your arguments. Bush was no conservative. Bush 2.0 grew the government more than any modern President before him, and spent money like a drunken Democrat. Obama, of course, makes Bush look like a penny pincher. At the rate of current deficit spending, our economy will collapse in the near future, with the government following close behind.
    ZDNet Gravatar
    itpro_z
    10th Apr 2010
  • Jobs grew in March by 165,000
    And the census was responsible for only 40,000
    of those jobs.

    Certainly if we can't sustain economic growth
    through the election season Democrats are in for
    a rough time.

    But Republicans can't just say "Bush wasn't a
    real conservative" and walk away. They own him.
    Just as Democrats own Monica's blue dress, and
    Carter's cardigan sweater.
    ZDNet Gravatar
    DanaBlankenhorn
    11th Apr 2010
  • November is coming soon.
    Playtime is over. It's been fun, but real Americans need to earn the money first, before Liberals can steal it and spend. Time to get real again and build the country up.
    ZDNet Gravatar
    Whennen89
    9th Apr 2010
  • It's 6 1/2 months away
    You're absolutely right about when the elections
    are.

    Good luck.
    ZDNet Gravatar
    DanaBlankenhorn
    10th Apr 2010
  • Value Added Tax VAT
    Next up is the VALUE ADDED TAX on everything
    you buy from the vendor to the retailer.

    Criminals from Chicago and bankrupt Amerika..
    ZDNet Gravatar
    no_barry_2012
    10th Apr 2010
  • Uh, that's the conservative proposal
    The "Fair Tax" is, in effect, a 23% VAT. It's a
    sales tax on both goods and services meant to
    replace the revenue from the current tax on
    income.

    I haven't seen any Democrats sign up for the "Fair
    Tax."
    ZDNet Gravatar
    DanaBlankenhorn
    11th Apr 2010

Talkback - Tell Us What You Think

Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]

The best of ZDNet, delivered

ZDNet Newsletters

Get the best of ZDNet delivered straight to your inbox

Facebook Activity

White Papers, Webcasts, & Resources