Arizona Continues National Leadership in e-Health Innovation

State Receives HHS Grant to Transform Healthcare System

Arizona Governor Janet Napolitano recently announced a $12 million federal grant to modernize the medical delivery system for one million AHCCCS patients. This award, the largest HHS grant in the country, builds on the success of the Arizona Health-e Connection project. The Arizona Health-e Connection was created in 2005 by Governor Napolitano to utilize technology to reduce the cost and improve the quality of health care in Arizona.

Through the grant, the Arizona Health Care Cost Containment System (AHCCCS) will launch a secure Web based electronic health records system to exchange health information between Medicaid physicians, hospitals and other health care providers.

“Once again, Arizona has proven its leadership by demonstrating new approaches to old problems,” said Governor Napolitano. “It’s gratifying to be recognized on the national level, and particularly rewarding to know that the innovative work developed here will be made available to other states.”

The Arizona Health-e Connection has recently transitioned from the steering committee appointed by Governor Napolitano to a nonprofit 501c3 organization which will serve as the governing entity moving forward.

The major deliverable of the Health-e Connection Roadmap was the development of a Roadmap for E-Health Connectivity, which was delivered to Governor Napolitano on April 4, 2006. One of the key priorities of the Arizona Health-e Connection Roadmap is the development of health information exchange (HIE) systems. HIE systems make medical information, such as medications, lab work and important medical history, instantly available to physicians, increasing the quality of care for the patient. A fully integrate HIE system will lead to cost savings through reductions in redundant testing and procedures, increased preventive interventions, and a lessening of inappropriate use of the emergency room.

When implemented, the new AHCCCS project will allow the agency to electronically store AHCCCS member health information and provide that information at the point of service, thus becoming the biggest HIE system in the State.

In 2006, the State received another federal grant to explore privacy and security issues related to e-Health. That grant, in partnership with the National Governor’s Association, provided resources to assess business practices that affect the safe and secure exchange of electronic health information. The Arizona Health Privacy Project will conclude its work in the spring of 2007, and share best practices for keeping health information secure and private.

The State has also funded health care innovation at the local level. In December 2006, Governor Napolitano announced grants given to rural health care providers to encourage innovation and technology. The Rural Health Information Technology Adoption grants are administered by the Government Information Technology Agency.