Nonprofit Group Will Lead $3 Billion Meaningful Use Initiative in California

Kim Belshé, California Health and Human Services secretary, said, "The efficient and secure exchange of health information is fundamental to the future of healthcare delivery in our state. This new governance entity will help ensure that California is able to promote and expand the exchange of health information."

An information exchange for health has never been accomplished before. It's a unique opportunity but will require some innovation and a great deal of hard work to proceed and establish information exchange broadly and in a safe and secure way.

Molly Coye, former director of the state Department of Health and Human Services, and former director of CalRHIO, said she believes Cal eConnect "will define the services and health information exchanges that are considered acceptable by the state, or by this organization. And therefore, a hospital or other provider organization can feel confident with services connected with this effort."

In an interview in late January, Frohlich said, "the hardest challenge" of the state's selection process "is that nothing like this has ever been accomplished before anywhere" although every state is grappling with similar decisions.

Frohlich said not all providers are eligible for stimulus funds. Rather, a certain percentage of care must be provided to Medicaid (Medi-Cal in California) patients to receive $1.4 billion of the $3 billion. Likewise, those providers eligible for stimulus funds from the remaining stimulus portion allocated for Medicare must have a certain percentage of care provided to Medicare patients.