Health-Care Providers Pump More Dollars Into I.T. - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Business & Finance

Health-Care Providers Pump More Dollars Into I.T.

After years of single-digit growth, U.S. health-care providers plan to increase their IT budgets by more than 10% a year between now and 2006, according to a survey released last week by market-analysis firm Datamonitor.

Industry and government pressure to improve the quality of patient care and reduce medical errors are key factors driving the increases, says Panni Kanyuk, a Datamonitor senior health-care analyst who worked on the study. "Information technology is an important tool in improving patient quality of care," she says, "and we're seeing this resonate in the market." Still, Kanyuk says, the industry spends only 2% or 3% on IT versus 10% spent by the financial-services sector.

chartFor its two-part study, "2004 IT Strategy In U.S. Healthcare Providers" and "2004 IT Infrastructure Trends In U.S. Healthcare Providers," Datamonitor surveyed 100 U.S. health-care decision makers about their companies' IT investment plans.

Of those surveyed, 66% say they expect their IT budgets to grow more than 10% annually between 2004 and 2006. Datamonitor also finds that high-midtier health-care institutions, those with 500 to 999 beds, are the most aggressive and advanced in IT investments, with a focus on technologies such as remote access for clinicians, inpatient and outpatient systems integration, and picture archiving and communications systems.

Low-midtier providers--those with 250 to 499 beds--are focusing their IT efforts on integrating clinical information into a single enterprise-information repository.

The largest providers--those with 1,000 beds or more--are putting their technology efforts into computerized physician order-entry systems, electronic medical-records, and lab, radiology, and pharmacy systems. "Providers of all sizes have electronic medical records [and] physician order-entry systems on their minds, but the largest providers are taking the biggest steps with those technologies," Kanyuk says.

That's the case at Sutter Health, an operator of 26 hospitals with nearly 5,800 beds in Northern California. It expects to see IT spending increase by 10% annually over the next few years as it rolls out electronic medical-records systems.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Learning: It's a Give and Take Thing
James M. Connolly, Editorial Director, InformationWeek and Network Computing,  1/24/2020
IT Careers: Top 10 US Cities for Tech Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  1/14/2020
Predictions for Cloud Computing in 2020
James Kobielus, Research Director, Futurum,  1/9/2020
Register for InformationWeek Newsletters
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll