The healthcare industry stands to gain more than $100 billion from the $775 billion economic stimulus plan that President-elect Obama and congressional Democrats are putting together.

Insiders say that most likely the vast majority (approximately $80 billion) will go to shoring up state Medicaid programs. Apparently Obama has gotten the message that states have been put in a bad position, with failing state budgets and increasing pressure on Medicaid programs with massive layoffs across the country.

The other $20 billion would likely go to beginning to update healthcare delivery with health IT. That money will probably be distributed as P4P rewards, with some going as grants to hospitals and healthcare systems that need help building their IT infrastructure.

To learn more about the health care implications of the stimulus package:
- read this Politico piece [1]

Related Articles:
Governors call for healthcare stimulus plan [2]
HIMSS report: $25 billion stimulus needed to help speed EMR [3]
CBO says health IT only cost-effective solution to healthcare [4]