About $4.7 billion will be spent on hospital IT applications in 2009, increasing to approximately $6.8 billion in 2014
Chicago, IL (Vocus) June 3, 2009
With more than $19 billion available for US hospitals and ambulatory clinics to implement the electronic medical record, HIMSS Analytics cuts through the information clutter to clarify which technology applications are expected to receive more funding from the American Recovery and Reinvestment Act with its Essentials of the US Hospital IT Market - 4th Edition. Captured from the HIMSS Analytics Database™, this data covers more than 5,100 hospitals and 32,000 medical facilities in the United States.
The online resource, available in PDF format, analyzes different EMR applications related to the pending definition of 'meaningful use' that is part of the ARRA verbiage. The Essentials report reviews the impact of meaningful use on specific applications of the EMR that include order entry, clinical data repository, clinical decision support, computerized provider order entry and clinical and physician documentation.
"About $4.7 billion will be spent on hospital IT applications in 2009, increasing to approximately $6.8 billion in 2014," said Mike Davis, executive vice president, HIMSS Analytics. "This figure represents a compounded annual growth rate, or CAGR, of 7.45 percent over that five-year period."
He explained that much of this increase will be driven by ARRA funding, "But other market drivers will also influence higher hospital IT spending rates." Davis cited three areas to monitor related to future hospital spending during the next five years.
- IT infrastructures, such as security, network upgrades, data storage environments, etc.
- ICD-10-CM encoding transition, a new coding system updating encoding, billing, and quality and outcomes reporting environments
- New claims transaction format, known as v5010
To evaluate those budgetary considerations for hospital spending, the Essentials guide offers a five-year forecasted spending analysis for US hospitals and hospital-owned entities. The data provides background and guidance on how the ARRA funding will be allocated and affected, information that can help simplify and set corporate and sales strategies. Vendor market share analysis is also provided for application environments with specific segmentations by hospital bed size to provide a clearer insight into market dynamics
"Healthcare IT sales organizations can use Essentials to influence their sales goals or operating strategy for the next few years because they have market intelligence based on current IT data to align their business strategy with IT spending forecasts and competitive market positions based on up-to-date trends," said Davis.
Visit the HIMSS Analytics Web site to learn more about Essentials of the US Hospital IT Market - 4th Edition. It is available in its entirety, by chapter, financial or ARRA clinical volumes.
About HIMSS Analytics: HIMSS Analytics is a wholly owned not-for-profit subsidiary of the Healthcare Information and Management Systems Society (HIMSS). The company collects and analyzes healthcare data related to IT processes and environments, products, IS department composition and costs, IS department management metrics, healthcare trends and purchase-related decisions. HIMSS Analytics delivers high quality data and analytical expertise to healthcare delivery organizations, healthcare IT companies, state governments, financial companies, pharmaceutical companies, and consulting firms. Visit http://www.himssanalytics.org/ for more information.
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