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HCAI details EHR modernization grant: $11.5M pool, $2M award ceiling, milestone payments
Summary
HCAI officials said the year‑one EHR modernization grant makes just over $11.5M available, caps awards at $2M each, requires milestone‑based reimbursement and disallows pre‑award costs and indirect costs (10% allowance for program staff time permitted).
Jacob Parkinson, program director for the Data Exchange Framework at HCAI, walked through the EHR modernization grant structure and funding limits.
"We have a really nice grant award here, for budget period 1, for this EHR modernization grant. Just over 11,500,000 available to start. We're looking at, a ceiling of $2,000,000 per award for this budget period," Parkinson said, summarizing the pool and per‑award ceiling.
Parkinson explained the grant is milestone‑based and reimbursement‑oriented. Milestone 0 requires a signed grant agreement and approved implementation plan; Milestone 1 will release 40% of the award after a technology readiness assessment and a vendor contract dated after the grant agreement; Milestone 2 covers interim reporting and training; Milestone 3 — the final report — will release the remaining 60% when the grantee has gone live, signed the data‑sharing agreement and completed required security and connectivity milestones.
The presentation listed seven budget categories applicants must itemize: licensing and subscription fees; implementation and configuration; data migration; interface and interoperability development; training and change management; IT hardware and equipment; and program costs. Parkinson stressed that pre‑award costs incurred before execution of a grant agreement are not allowable for reimbursement, and that indirect costs are not permitted though up to 10% of an award may be used for staff time coordinating the grant.
