Funding California’s health information exchange network

No matter where patients go for medical care, or how many physicians and specialists they need to see, their medical records should go with them.

Right now, health data is siloed in a patchwork of networks operated by regional organizations or health systems.

It’s time to change that in California by investing in a statewide health information exchange (HIE) network. A statewide HIE network will allow doctors, nurses, pharmacists, and other healthcare providers to immediately access a patient’s vital health information electronically – with safe and secure data sharing practices in place.

Funding California’s HIE network will require a combination of state and federal resources.

By building a statewide infrastructure, we can tap into enhanced federal funds that maximize the impact of dedicated state funding. With millions of dollars on the table and lives at stake, we can’t delay a bold investment in our health technology infrastructure any longer.

Did you know?

HIEs can cut costs associated with errors and duplicative tests

Currently, over $20 billion is spent annually on preventable medication errors across the country, and an additional $20 billion is wasted every year on duplicative hospital radiology tests. A statewide HIE network in California would cut these types of costs by reducing incidences of duplicative services, arm providers with complete patient histories, and improve health outcomes for Californians.1

There’s federal money on the table for a statewide HIE — and we can’t miss out:

California can’t miss out on federal funding that would help improve data sharing statewide:

New opportunities for federal funding to support IT infrastructure enhancements and data sharing to facilitate the distribution of the COVID-19 vaccine are expected this year.2

The federal Medicaid program provides state Medicaid programs with enhanced funds for IT infrastructure to support key program functions, including care management, plan management/performance measurement, and provider management.3

Under this funding stream, the federal government covers up to 90% of the costs of initial development and 75% of the costs for ongoing maintenance, which means state dollars go a very long way.4

This bold proposal will maximize federal funds, reduce inefficiencies in our healthcare system, and improve care for patients.5


2 H.R. 1319 (American Rescue Plan Act of 2021) (2021).

3 Centers for Medicaid and Medicaid Services (CMS), Data & Systems (2021).

4 CMS, Federal Financial Participation for HIT and HIE (2021).

5 HIMSS, Interoperability in Healthcare (2021).


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