6.	MEDICARE AND MEDICAID ELECTRONIC HEALTH RECORDS INCENTIVES

EHR incentive reimbursements are payments received under the Health Information Technology for Economic and Clinical Health Act (the “HITECH Act”) which was enacted into law on February 17, 2009 as part of the American Recovery and Reinvestment Act of 2009 (“ARRA”). The HITECH Act includes provisions designed to increase the use of EHR by both physicians and hospitals. Beginning with federal fiscal year 2011 (federal fiscal year is October 1 through September 30) and extending through federal fiscal year 2016, eligible hospitals and critical access hospitals (“CAH”) participating in the Medicare and Medicaid programs are eligible for reimbursement incentives based on successfully demonstrating meaningful use of their certified EHR technology. Conversely, those hospitals that do not successfully demonstrate meaningful use of EHR technology are subject to payment penalties or downward adjustments to their Medicare payments beginning in federal fiscal year 2015.

Attestation of Medicare meaningful use requirements was successful for each of SunLink’s hospital subsidiaries’ and certain discontinued operations for the fiscal year ended June 30, 2014. SunLink’s hospital subsidiaries have also successfully attested to the meaningful use requirements for the Medicaid program for continuing and certain discontinued operations for the fiscal years ended June 30, 2017, 2016 and 2015. EHR incentive payments received were as follows:


	2017		2016			2015
Continuing Operations
Medicare	$	64	$	(7	)	$	—
Medicaid		—		—			21

	$	64	$	(7	)	$	21

Discontinued Operations
Medicare	$	—	$	—		$	703
Medicaid		—		(93	)		29

	$	0	$	(93	)	$	732

Combined Operations
Medicare	$	64	$	(7	)	$	703
Medicaid		—		(93	)		50

	$	64	$	(100	)	$	753