Tight Budgets: An Unexpected Force Driving the Adoption of Health IT

The Healthcare IT market is expected to grow at a CAGR of about 24% during 2012 to 2014. What other sectors can boast such a rate in this economy? It is anticipated to be a $40 billion industry by the end of 2011.  Why?

In a time when most spending is being frozen or sharply reduced there can only be one reason for increased investment in HIT. It’s the same reason that has always driven strong spending- the expectation of a significant return on investment.

The urgency for significant HIT adoption is unavoidably clear:

  • The cost of healthcare is rising too fast for traditional containment approaches.
  • Even with healthcare reforms, too many people cannot afford health insurance and,
  • Federal and State programs cannot absorb the increased cost of the uninsured in their existing aid programs.
  • Hospitalization costs continue to skyrocket
  • While costs are rising, the quality of care is not.

While many debate how to implement HIT, virtually no one debates the need for its adoption throughout the health sector. The current system has been broken for quite some time and is still hemorrhaging billions of tax dollars.

The latest health information technologies hold the promise of a truly transformed future…a future that was previously impossible just a decade ago:

  • EHRs can reduced the costs of information management
    • Current, uniform patient data becomes accessible in real-time wherever the patient is being treated.
    • Duplicate testing becomes minimized
    • Analytics on data-rich patient information yields
      • better informed care decisions
      • improved outcomes
      • lower treatment costs
    • Sophisticated analysis of massive patient databases yields
      • Superior management of drug safety and effectiveness
      • Rapid identification of expensive, less likely to succeed treatments techniques and more

These are just a few areas of improved care and reduced cost.

It’s not a question of do we adopt state of the art HIT but one of how aggressively we pursue deployment now.