Gov. Sonny Perdue on Thursday hailed Georgia's selection as one of 12 states chosen for a $150 million federal program aimed at getting doctors to convert to electronic records, saying it could lower health care costs and reduce errors caused by handscrawled paperwork.I

In a Capitol news conference with Michael Leavitt, secretary of the U.S. Department of Health and Human Services, Perdue said 200 Georgia doctors in small- to medium-size practices will take part in the Medicare demonstration study.

Half will receive tens of thousands of dollars from the federal government over the next five years, and the rest — to be used as a control group — will be paid minimal fees.

Leavitt said Georgia was selected after a competitive process involving 40 states. He said the physicians haven't been chosen and can make pitches to federal and state officials for large grants.

Perdue said the grants represent the first major step in digitizing health records, which analysts say is essential over the next decade to keep health costs in check or even reduce them.

"This is progress in health care," Perdue said.

"Medical care is evolving and the increasing use of health information technology is vitally important to the transformation of our health care system," said Dr. Rhonda Medows, commissioner of the state Department of Community Health. "Electronic health records are an invaluable tool that primary care physicians can use to further enhance the timely communication of important health information and improve the coordination of the patient's care."

Only a tiny percentage of physicians have converted their offices to electronic record keeping, and many oppose the idea because of costs and privacy concerns.

Dr. Jack Chapman, president of the Medical Association of Georgia, said the project's goal is to revolutionize the way health care information is managed, producing better outcomes and greater patient satisfaction.

MAG played a role in the lobbying effort that secured Georgia's selection for the demonstration project.

President Bush has called for universal electronic medical systems to be in place by 2014, though few analysts see that date as feasible.

Leavitt said he hopes the program will continue next year if the Democrats win the presidency, adding he believes it will.