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The U.S. Department of Health and Human Services (HHS) has proposed new rules to penalize healthcare providers who engage in information blocking, as required by the 21st Century Cures Act. These rules empower the HHS Office of Inspector General (OIG) to investigate and determine whether healthcare organizations have "knowingly and unreasonably" interfered with the access, exchange, or use of electronic health information. Certified IT developers and health information exchanges/networks already face $1 million penalties per violation, as determined by OIG.

The proposed rules introduce "disincentives" for healthcare providers, including hospitals, ambulatory providers, and those in accountable care organizations. For example, eligible hospitals found engaging in information blocking could lose 75% of the annual market basket increase, while ambulatory providers could lose their meaningful use status under the Merit-based Incentive Payment System. Healthcare providers in accountable care organizations could be made ineligible to participate in the Medicare Shared Savings Program for at least a year.

The proposed rules are open for public comment until January 2, 2024. They aim to promote information sharing, with potential penalties for non-compliance. Eligible hospitals could face median disincentives of around $394,353, and eligible clinicians could lose a median of $686, with larger groups facing higher potential losses.

HHS Secretary Xavier Becerra emphasized the commitment to discouraging information blocking and promoting access to electronic health information. Stakeholders are encouraged to participate in an information session on the proposed rule and access resources on HealthIT.gov.

In summary, the HHS is introducing penalties for healthcare providers engaging in information blocking, aiming to increase the sharing of electronic health information and improve interoperability in the healthcare sector.