Providers in North America will spend up to $39.5 billion on information technology (IT) solutions by 2008, according to a report recently released by Datamonitor.
NATIONAL REPORTS-Providers in North America will spend up to $39.5 billion on information technology (IT) solutions by 2008, according to a report recently released by Datamonitor.
The increase in healthcare IT spending is being driven largely by national and regional initiatives that promote the adoption of electronic medical record (EMR) systems, says Jocelyn Young, research director for Datamonitor and author of the study, "Technology Opportunities in the North American Healthcare Market."
The report predicts that healthcare IT spending among providers in the United States will experience a 7.4% five-year compound annual growth rate. Provider offices in the United States will show relatively aggressive growth during the forecast period, driven largely by the increasing adoption of pay-for-performance measures by health plans as a way to reward providers that adopt technology, the report says. Other drivers include the growth of industry research and government-funded demonstration projects that focus on the business case for IT adoption among provider practices.
Hospitals, which have been at the center of IT adoption for the past decade, will continue to embrace technology, Young says.
BARRIERS TO ADOPTION
While investment in IT by providers will fuel much of the anticipated growth in the coming years, Young says that barriers to provider IT adoption still exist. Many physicians remain concerned over IT support and the costs involved.
Still, she points out, an increasing number of provider groups will begin to implement technology solutions during the next several years.
"That's the next level of IT investment," Young says. "Part of it will be convenience and workflow. We've certainly come a long way in recognizing the value of technology."
Conversations With Perry and Friends: Paul Fronstin, Ph.D.
May 9th 2025Perry Cohen, Pharm.D., a longtime member of the Managed Healthcare Executive editorial advisory board, is host of the Conversations with Perry and Friends podcast. In this episode, his guest is Paul Fronstin, Ph.D., director of health benefits research at the Employee Benefit Research Institute.
Listen
Conversations With Perry and Friends
April 14th 2025Perry Cohen, Pharm.D., a longtime member of the Managed Healthcare Executive editorial advisory board, is host of the Conversations with Perry and Friends podcast. His guest this episode is John Baackes, the former CEO of L.A. Care Health Plan.
Listen
Women PCPs Have Equal or Better Medicare Patient Outcomes Than Men PCPs in Value-Based Care Model
June 24th 2025Women primary care providers (PCPs) treating Medicare patients in a value-based care model achieved better patient outcomes and earned more per patient than male counterparts, despite receiving equal patient satisfaction ratings, highlighting a potential for value-based payment to help close the gender pay gap.
Read More
A Progress Report on Chronic GVHD. The Grades Are Not So Great
June 24th 2025There has been no or some progress in most areas since a National Institute of Health consensus development project in 2020, according to a group of experts. But exception is important: Prevention of moderate or severe chronic graft-vs.-host disease.
Read More