For the report, titled “Essentials of the U.S. Hospital Market, 4th Edition,” HIMSS Analytics surveyed 5,100 hospitals.

The researchers projected that health IT would account for about 43% to 48% of total hospital capital budgets this year.

The projected figures are lower than 2007 levels, possibly as a result of the ongoing recession. However, the report predicts that health IT spending will increase over a longer time frame by a compounded annual rate of 7.5%.

The report identifies several factors that could account for the increase in health IT spending, including:

• Incentive payments for electronic health records outlined in the federal economic stimulus package;
• Increased clinical automation spending;
• New ICD-10-CM codes; and
• New 5010 standards for electronic claims.

Materials related to the report are available on HIMSS Analytics’ Web site (Anderson, Health Data Management, 6/4).

EHR Market Growth

In related news, a recent study by Kalorama Information suggests that the market for EHR applications and data transfer will increase from $575 million in 2008 to $1.6 billion by 2013, Healthcare IT News reports.

The report, titled “High-Tech Patient Monitoring Systems Markets,” predicts that the market will increase by 23.3% annually through 2013 as a result of increased EHR use in hospitals and physician offices.

The report also notes that EHRs are a key component of President Obama’s health care reform efforts because they have the potential to:

• Boost efficiency and accuracy;
• Cut health care costs;
• Improve patient outcomes and satisfaction;
• Provide greater physician freedom; and
• Reduce hospitalizations.

However, the report acknowledges that high implementation costs sometimes pose a barrier to EHR adoption (Monegain, Healthcare IT News, 6/4

Above article published on

http://www.ihealthbeat.org/Articles/2009/6/5/Hospital-
Health-IT-Spending-EHR-Market-To-Grow-Reports-Say.aspx?topic=EHRs%20and%20PHRs