The House passed its health care reform bill, which encourages hospitals to adopt electronic health records.

Hospitals and other medical providers stand to gain or lose government aid over the next few years based on whether they're making "meaningful use" of electronic health records, as spelled out in this year's stimulus package. But what that means, exactly, is still being worked out.

A Health and Human Services advisory panel is accepting input on "meaningful use" through June 26. A proposed rule is expected from the Centers for Medicare and Medicaid Services this year.

The stimulus package sets aside $17 billion for EHR incentives through Medicare and Medicaid. Those payments will begin as early as October 2010 for hospitals demonstrating "meaningful use" and January 2011 for other providers. But if they don't comply by 2015, their regular CMS payments will be reduced.

The final version of the stimulus package signed by Obama includes $19 billion for health IT modernization, including about $17 billion in incentives to Medicare and Medicaid providers to adopt electronic health records.

The compromise bill allocates $19 billion for health IT systems.

The House passed the economic recovery package, approving the $20 billion for modernizing health IT systems.

The House Ways and Means and Energy and Commerce committees approved the two-year, $825 billion economic stimulus package, including the $20 billion allocated for health care IT.

Obama is dedicating $20 billion of his economic recovery package -- now estimated at $825 billion overall -- to launching a new health information technology initiative that aims to establish national standards, financial incentives and privacy protections for electronic medical records. Health and Human Services Secretary-designate Tom Daschle spoke during his Jan. 8 confirmation hearings of the need for greater use of IT in overhauling the health care system.