June 8, 2009 - “About $4.7 billion will be spent on hospital IT applications in 2009, increasing to approximately $6.8 billion in 2014,” according to Mike Davis, executive vice president, HIMSS Analytics, in a recent report "Essentials of the U.S. Hospital IT Market – 4th Edition" (Essentials).
The $4.7 billion represents a compounded annual growth rate, or CAGR, of 7.45 percent over that five-year period. Acccording to Davis, much of this increase will be driven by American Recovery and Reinvestment Act (ARRA) funding, “but other market drivers such as ICD-10-CM and new claims transaction formats (v5010) will also drive higher hospital IT spend rates.”
With more than $19 billion available for U.S. hospitals and ambulatory clinics to implement the electronic medical record, HIMSS Analytics attempts to clarify which technology applications are expected to receive more funding from the ARRA the recently released report, which captured from the HIMSS Analytics Database, data covering more than 5,100 hospitals and 32,000 medical facilities in the U.S.
The online resource, available in PDF format, analyzes almost 20 different EMR applications related to the pending definition of ‘meaningful use.’ 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 other clinical documentation.
To evaluate those budgetary considerations for hospital spending, the Essentials guide offers a five-year forecasted spending analysis for U.S. 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 sales strategies.
“Healthcare IT sales organizations can use Essentials to influence their sales goals or sales strategy for the next few years because they have market intelligence based on current IT data to align their business strategy with up-to-date trends,” said Davis.
For more information: www.himssanalytics.org/general/essentials.asp