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CMS-1403-FC
MMA, also permitted third parties to offset the
implementation costs for electronic prescribing by
authorizing the creation of an exception to the physician
self-referral (“Stark”) prohibition for certain donations
of electronic prescribing technology. This enabled health
plans, hospitals, and medical groups to provide in-kind
support to physicians for electronic prescribing.
Furthermore the MMA authorized the creation of a “safe
harbor” to protect these entities from prosecution under
the anti-kickback statute.
There are many potential advantages to e-prescribing.
These advantages include, but are not limited, to:
● Improving patient safety and quality of care by
(reducing medication errors by up to 86 percent):
faxing;
history;
○ Reducing illegibility.
○ Reducing oral miscommunications.
○ Providing warnings and alert systems
○ Providing access to patient’s medication
● Reducing time spent on pharmacy phone calls and
● Automation of renewals and authorization;
● Improving formulary adherence (from 14 percent to
88 percent after e-prescribing implementation) (Bell,
674