The US-based research and consulting firm – MarketsandMarkets – has released a healthcare information technology report that forecasts substantial growth in the healthcare information technology by 2014. The forecast of a compound annual growth rate of 16.1% is being attributed to. The CAGR of 16.1% is attributed to the exponential increase in demand for general applications such as electronic medical records (EMR), electronic health records (EHR), computerized physician order entry system (CPOE) and non clinical systems.
A large part of this increased demand is due to federal regulations that mandate EMR systems for physicians that provide care to Medicare patients. Healthcare providers, hospitals, and nursing homes that deploy EMR stand to gain major incentives and payments in terms of Medicare reimbursements while those who continue with the paper-based system will face penalties and experience a slower rate of reimbursement.
In addition to Medicare incentives, healthcare information technology has widespread application and demand in almost all areas of healthcare systems. Other than EMR, EHR, and CPOE systems healthcare technology finds application in many areas such as practice management, hospital information systems, patient management systems, clinical decision support systems, digital imaging and archiving, and more.
Considering that that less than 20% of physicians in the U.S. currently uses an EMR, there is huge potential for sales and according to the MarketsandMarkets report, the market will grow to $53.8 billion by 2014. With the $19 billion allocated to health information technology under the American Recovery and Reinvestment Act of 2009 (ARRA), the report forecasts an overall market CAGR of 13.0% from 2009 – 2014.