IT system investment to outpace EHR spending
Hospitals will invest more in administrative IT systems, health information management and revenue cycle analytics than in EHRs over the next few years, according to a report from Frost & Sullivan.
The U.S. health information system market was valued at $11.1 billion in 2013 and is expected to grow by a compound annual growth rate (CAGR) of 5.7 percent from 2014 to 2020. The market's revenue is expected to steadily increase until it reaches $17.6 billion by 2020.
The shift to value-based payment is the largest immediate driver of investments in health information systems, according to the report which found that hospitals expect the shift to be a primary focus over the next two years.
Increased demand for healthcare services and consolidation among providers also will drive health information system investments, particularly as hospitals implement cost-saving measures, participate in value-based reimbursement models and work with the increasing data collected via EHRs.
Investment in administrative IT systems will be the fastest growing market segment, at a CAGR of 10.4 percent from 2014 to 2020; followed by financial IT systems at a CAGR of 9.7 percent and clinical information systems at a CAGR of 0.6 percent.
Editor Beth earned a bachelor’s degree in journalism and master’s in health communication. She has worked in hospital, academic and publishing settings over the past 20 years. Beth joined TriMed in 2005, as editor of CMIO and Clinical Innovation + Technology. When not covering all things related to health IT, she spends time with her husband and three children.