(2) Purchasing and installing decision-support 
software and EMAR for purposes of subsections (b) 
and (c). 
(3) Updating CPOE technology, decision-sup-
port software, and EMAR. 
(4) Training and updating the usage associated 
with CPOE technology, decision support software, 
and EMAR with the goal of attaining a 100 percent 
rate of compliance among physicians and other clini-
cians who order prescription drugs and tests. 
(e) FACILITIES
WITH
PREVIOUSLY
INSTALLED 
CPOE TECHNOLOGY.—A grant under subsection (a) may 
be made to a hospital or a skilled nursing facility that 
installed CPOE technology prior to receiving an initial 
grant under such subsection. Such a hospital or facility 
may expend the grant for the purposes described in para-
graphs (2) through (4) of subsection (d). 
(f) MATCHING REQUIREMENT.— 
(1) IN GENERAL.—A grant may be made under 
subsection (a) only if the applicant involved agrees 
that, with respect to the costs to be incurred by the 
applicant in carrying out the purpose described in 
such subsection, the applicant will make available 
non-Federal contributions (in cash or in kind) to-
ward such costs in an amount determined by the
Secretary. Such contributions may be made directly 
or through donations from public or private entities. 
(2) DETERMINATION OF AMOUNT OF NON-FED-
ERAL
CONTRIBUTION.—Non-Federal contributions 
required in subsection (a) may be in cash or in kind, 
fairly evaluated, including equipment or services 
(and excluding indirect or overhead costs). Amounts 
provided by the Federal Government, or services as-
sisted or subsidized to any significant extent by the 
Federal Government, may not be included in deter-
mining the amount of such non-Federal contribu-
tions. 
(g) REPORTS BY HOSPITALS AND SKILLED NURSING 
FACILITIES.—A grant may be made under subsection (a) 
only if the applicant involved agrees that, for each fiscal 
year for which the grant is made, the applicant will submit 
to the Secretary, acting through the National Health In-
formation Technology Coordinator, a report that provides 
details on the following: 
(1) Quantitative reductions in medication er-
rors. 
(2) The level of compliance by physicians, clini-
cians, and other staff with respect to the usage of 
CPOE technology.
(3) The difference between administrative and 
clinical workflows before the implementation of 
CPOE technology and after the usage of such tech-
nology. 
(4) Alterations and improvements with respect 
to workflow in the case of facilities that have CPOE 
technology. 
(5) An analysis on the improvement of the qual-
ity of care and patient satisfaction within the hos-
pital or skilled nursing facility involved. 
(6) The overall economic savings associated 
with the usage of CPOE technology. 
(h) APPLICATION.—A grant may be made under sub-
section (a) only if an application for the grant is submitted 
to the Secretary and the application is in such form, is 
made in such manner, and contains such agreements, as-
surances, and information as the Secretary determines to 
be necessary to carry out this section. The Secretary shall 
provide technical assistance to hospitals and skilled nurs-
ing facilities in the application process. 
(i) LIMITATION
OF GRANT.—A grant under sub-
section (a) may not be made in an amount exceeding 
$500,000. 
(j) REPORT TO CONGRESS.—Not later than five years 
after the initial distribution of grants under subsection
(a), the Secretary shall submit to the Congress a report 
on the progress of the program under such subsection. 
(k) DEFINITIONS.—For purposes of this Act: 
(1) The term ‘‘barcode point-of-care’’ means a 
system that uses bar codes in association with a 
computer server that interfaces with the admission, 
discharge, transfer, and pharmacy systems, and with 
EMAR software, in order to ensure that a patient 
receives the medications intended for the patient, in-
cluding the intended dosages. 
(2) The term ‘‘CPOE technology’’ has the 
meaning indicated for such term in subsection 
(b)(1). 
(3) The term ‘‘decision-support software’’ 
means the computer software described in subsection 
(b)(2). 
(4) The terms ‘‘electronic medication adminis-
tration record’’ and ‘‘EMAR’’ have the meaning in-
dicated for such terms in subsection (c)(2). 
(5) The term ‘‘rural hospital’’ means a hospital 
located in a rural area, as defined in section 
1886(d)(2)(D) of the Social Security Act. 
(6) The term ‘‘rural skilled nursing facility’’ 
means a skilled nursing facility located in a rural
area, as defined in section 413.333 of title 42, Code 
of Federal Regulations. 
(7) The term ‘‘Secretary’’ means the Secretary 
of Health and Human Services. 
(8) The term ‘‘skilled nursing facility’’ has the 
meaning indicated for such term in section 1819(a) 
of the Social Security Act. 
(l) FUNDING.— 
(1) AUTHORIZATION OF APPROPRIATION.—For 
the purpose of carrying out this section, there is au-
thorized to be appropriated $25,000,000 for each of 
the fiscal years 2006 through 2010. 
(2) 
RESERVATION
OF
AMOUNTS.—Of 
the 
amounts appropriated under paragraph (1), the Sec-
retary shall reserve amounts in accordance with the 
following: 
(A) Fifty percent for grants under section 
(a) for the initial purchase and installation of 
CPOE technology and decision-support soft-
ware. Amounts reserved under this subpara-
graph are not available for hospitals and skilled 
nursing facilities referred to in subsection (e) 
and are not available for the purposes described 
in paragraphs (3) and (4) of subsection (d).
(B) Fifty percent for grants under such 
subsection for upgrading such technology and 
software and for other purposes authorized in 
paragraphs (2) through (4) of subsection (d), 
including initial and subsequent grants under 
subsection (a) to hospitals and skilled nursing 
facilities referred to in subsection (e). 
(C) Twenty percent for grants under such 
subsection to rural hospitals and rural skilled 
nursing facilities in the aggregate, which per-
centage includes amounts reserved under sub-
paragraphs (A) and (B) that are used for 
grants under subsection (a) to rural hospitals 
and rural skilled nursing facilities. 
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