Biden Announces $220 Million in Health-Technology Grants

May 4 (Bloomberg) — The Obama administration plans to announce today the selection of 15 communities that will share in $220 million worth of grants for pilot projects to test health-care information technology.

The money comes from the economic stimulus legislation passed last year and is intended to encourage development and use of systems to connect doctors, hospitals and patients, according to a White House official speaking on the condition of anonymity before the announcement.

Vice President Joe Biden and Health and Human Services Secretary Kathleen Sebelius will announce the locations for the grants at an event scheduled for 1 p.m. Washington time today, the official said.

The grants will create as many as 1,100 jobs, each paying an average of $70,000 per year, the official said.

The $862 billion economic stimulus measure included as much as $27 billion for doctors and hospitals to adopt electronic medical records and committed $2 billion to develop technology so every American can have electronic records by 2014.

The Obama administration announced $975 million in government grants on Feb. 12 to encourage the use of health-care technology at hospitals to help share medical information and train medical professionals to use the new systems.

By Nicholas Johnston

–Editors: Joe Sobczyk, Robin Meszoly

To contact the reporter on this story: Nicholas Johnston in Washington at njohnston3@bloomberg.net

To contact the editor responsible for this story: Jim Kirk at jkirk12@bloomberg.net