Democratic Gov. Jim Doyle announced Thursday he would budget $30 million to increase Wisconsin's use of electronic medical records.
The grant will give $20 million to nonprofit organizations and $10 million in tax credits to for-profit businesses that implement electronic recording — or eHealth — initiatives.
"[The grant] will cut back on health-care spending and improve patient safety," Doyle spokesperson Carla Vigue said. "It's a wise investment because it will help bring down health-care costs statewide."
The proposal will be part of Doyle's biennium budget that must be approved by the state Legislature this spring.
Without having to introduce his budget until February, the next couple weeks will give Doyle the opportunity to collect support for this multi-million-dollar program.
About 30 percent of health-care spending — nearly $300 billion each year — is "inappropriate, redundant or unnecessary," according to the U.S. Institute of Medicine.
In a July 2006 report, the institute said lawmakers could reduce the impact of medication errors by increasing the use of information technologies and electronic prescribing.
Some critics of electronic records initiatives, however, are concerned confidential files may be left vulnerable to Internet hackers.
Mary Kay Grasmick, Wisconsin Hospital Association spokesperson, said hospitals could only do what any business does to protect its clients.
"I'm not an IT person, but I would expect hospitals to put up firewalls and every protection like any other business," Grasmick said. "The advantages far outweigh the risks."
Doyle's proposal is a step in the right direction, Grasmick added, but it would not bring every hospital up to speed. The average hospital requires $30-50 million to set up its own system and not all of the current systems communicate with each other.
Even so, Grasmick said, "Every little bit helps."
Wisconsin health-care became a major issue during last November's election and continues to drive state lawmakers.
Doyle also announced a smoking initiative Wednesday and Assembly Republicans placed health-care high on their agenda at a Thursday press conference.
State Sens. Alberta Darling, R-River Hills, and Carol Roessler, R-Oshkosh, also announced plans Thursday for health-care reform legislation. Some key proposals suggest reducing chronic conditions and increasing the state's Medicaid reimbursements to hospitals.
Darling spokesperson Dave Volz said the senator hopes to reduce the Medicaid burden so hospitals would not have to push extra costs on private health-care companies.
"The idea is that if you have more people with private health care, then less people will rely on government aid," Volz said.
The senators may amend the governor's budget to include some health-care provisions, Volz said, or may introduce legislation separately.
Either way, "being in the minority will be difficult," he added.