Healthcare information technology spending by state and local governments in the U.S. is expected to grow from $7.6 billion in fiscal 2006 to $12.2 billion in fiscal 2011, according to a new research report.
Research firm Input of Reston, VA, said that the advancement of healthcare IT initiatives and ongoing program integration will be major factors behind market growth in coming years. The report cites recent legislative initiatives, like the passage of the Health Information Technology Promotion Act of 2006 in the House of Representatives, as promising signs.
The report also pointed to recent grants announced by the Centers for Medicare and Medicaid Services (CMS) that provide states with $150 million in 2007 and 2008 to increase quality and efficiency of patient care through IT. The grants represent the first time that CMS has funded healthcare IT projects, according to Input.
Meanwhile, state and local IT spending will be driven by the need for program efficiencies, as well as fraud and abuse reduction, which will inevitably result in the consolidation of healthcare and welfare systems. Healthcare IT vendors can expect state and local governments to explore data warehousing projects that pull data from multiple sources for reporting and trending purposes.
By AuntMinnie.com staff writers
August 3, 2006
Related Reading
House approves H.R. 4157 healthcare IT bill, July 28, 2006
Share of U.S. doctors using digital records up a bit, July 24, 2006
Practices that embrace EHR security regulations inspire patient confidence, July 14, 2006
Health IT bill moves forward in U.S. Congress, May 25, 2006
U.S. Senate committee moves on health information technology, July 21, 2005
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