Boom Times For Health IT Sector

Health information technology (HIT) is the fastest growing segment of the $1 trillion global health care marketplace, and is poised to continue its impressive growth through 2013, according to a study released Tuesday.

The health IT marketplace is showing 11% combined annual growth rate, which is likely to continue over the next four years, according to a study from Scientia Advisors, a management consulting firm.

To remain competitive, vendors must take into account government incentives, requirements for clinical decision-making and electronic health record systems, and emerging competitors in Asia and elsewhere in the developing world, the study said.

Health information technology will grow from 4% of the worldwide health care products market to 5% -- a 25% increase in HIT market share, Scientia said.

HIT spending in the US will focus on inpatient and outpatient electronic health records systems, at the expense of specialty and departmental information systems and other capital investments, Scientia said.

"Leading players with large installed bases, proven products, and streamlined routes to meaningful use of EHRs are likely to gain share," Scientia said.

Some small hospitals may choose lower risk, lower cost approaches such as remote hosting. Given the economic slowdown, vendors will lend hospitals capital to finance HIT investments.

"Clinical decision support systems (CDSS) will likely have a profound impact on clinical diagnostics and therapeutics," Scientia said.

Also, "over the long term, disruptive innovations such as open source software and 'software as a service' could lead to dramatically lower pricing," the company said.

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Blue Cross of Northeast Pennsylvania, the University of Louisville School of Medicine, and a range of large and small healthcare providers are using mobile apps to improve care and help patients manage their health. Find out how. Download the report here (registration required).