The current regulatory trends are driving the North American healthcare IT industry to cross USD 34.5 billion in 2014, a new study by Technology Business Research Inc (TBR) suggests. The growth in industry is expected to open up many opportunities for new vendors.
TBR reported that the money will be strewn across industry applications, business applications, productivity applications, business intelligence and analytics, database and technology, and systems management. The report also stated that vendors who are currently holding a good position have high chances of securing their dominance over the market.
In a news release, TBR healthcare analyst Joseph Walent said, “The wide variety of regulatory mandates and changes coming into force in the near term in the U.S. magnifies the pressure on healthcare providers, commercial payers and public sector agencies to maximize the value and ROI of their IT spend to meet these requirements.”
“Health IT vendors able to recognize the IT spending habits of the market segments, and adjust accordingly, will be best positioned to secure market share,” Walent says. “The analysis we’re conducting in our SourceIT Healthcare Report will provide our clients with information to make better business decisions in this shifting market.”
TBR reported that the survey included 225 IT decision makers across the C-suite and line-of-business managers. The survey also included 25 qualitative and in-depth interviews to reveal their perceptions, priorities and spending intentions.
One survey respondent said, “Regulatory compliance funds take the priority, absolutely, for the healthcare industry. For example, ICD-10 is not a project; it’s a program with an estimated end-to-end budget of $2.5 million. A large part of that is based on consultants’ contributions, because we’re not relying on people who are unfamiliar with this.”
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