The health care industry is continuing its IT laggard-to-innovator transformation. InformationWeek 500 health care companies are spending a median 4% of revenue on IT budgets this year, just as in 2007, but still a stunning increase from the measly 2.7% of revenue spent on IT in 2002.

These dollars are going into electronic medical records, computerized physician order-entry systems, and e-prescribing technologies. In fact, 87% of InformationWeek 500 health care companies say they've increased the use of automation to optimize business processes. But equally impressive, just over half say the deployment of business intelligence tools has been one of the most effective ways to boost their companies' productivity.

At Geisinger Health System, BI plays a major role. A remote-monitoring pilot involving 250 patients with chronic conditions collects data from wireless medical devices in patients' homes. This data is transmitted to centralized systems where it undergoes analysis. If the system detects troublesome readings, Geisinger caregivers are electronically alerted so they can contact patients about necessary steps to take.

Dr. Ron Paulus, CTO and innovation officer, says, "It's about using technology to find opportunities for early intervention, before a situation gets out of control."

Industry Snapshot: Health Care & Medical