On October 16, 2015, the Centers for Medicare & Medicaid Services (CMS) published a final rule (Final Rule) that streamlines Stage 2 and finalizes Stage 3 of the Medicare and Medicaid electronichealth record (EHR) Incentive Programs (Meaningful Use Programs). The Final Rule also shortens the EHR reporting period in 2015 to 90 days and eliminates Stage 1. Providers scheduled to satisfy Stage 1 must instead meet the requirements of a modified Stage 2(Modified Stage 2), which contains fewer objectives than the current Stage 2 and eliminates the optional menu objectives. Importantly, CMS provides a number of exclusions for Stage 1 providers in 2015 to ease the transition to this newly Modified Stage 2. Modified Stage 2 is effective for EHR reporting periods in 2015 through 2017. CMS treats 2017 as a transition year and permits providers to demonstrate either Modified Stage 2 or Stage 3. Beginning in 2018, Stage 3 will become mandatory, and all providers will be required to attest to a single set of eight objectives. The Final Rule includes a comment period to address future years of the Meaningful Use Programs through additional rule making. Comments are due to CMS by December 15, 2015.

EHR REPORTING PERIOD -

Providers participating in the Meaningful Use Programs must meet certain objectives and measures during their respective “EHR reporting periods” to become a “meaningful user” of certified EHR technology (CEHRT). Currently, the EHR reporting period for eligible hospitals (EHs) and critical access hospitals (CAHs) is based on the federal fiscal year. The EHR reporting period for eligible professionals (EPs) is based on the calendar year. Under the Final Rule, all EPs, EHs, and CAHs (collectively, Providers) have a 90-day EHR reporting period in 2015. EPs may select any 90-day period between January 1, 2015, and December 31, 2015, while EHs and CAHs may choose any 90-day period between October 1, 2014, and December 31, 2015. Similarly, in 2016, Providers who demonstrate meaningful use for the first time will have a 90-day EHR reporting period. All other Providers will be required to satisfy meaningful use for the entire calendar year. Beginning in 2017, the EHR reporting period will be a full calendar year for all Providers attesting to Modified Stage 2. However, if the EP or EH is participating in the Medicaid Meaningful Use Program for the first time, the Provider will have a 90-day EHR reporting period. Providers attesting to Stage 3 in 2017 will also have a 90-day EHR reporting period.