Growth Areas And Changes To Watch For In The Health IT Market In 2014

According to a new Research and Markets’ report entitled: North American Healthcare IT Market Report 2013-2017, the health IT market of North America is going to grow at a compound rate of 7.4 percent to reach $31.3 billion by 2017 from $21.9 billion in 2012. main factors driving this growth include higher demand for clinical information technology, and administrative solutions and services.

The report segments the market on the basis of applications, delivery modes, and components. Based on application, the North American healthcare information technology is segmented into provider (clinical information technology and non-clinical information technology) and payer, while the market by delivery mode is further categorized as on-premises, Web-based, and cloud-based. The healthcare information technology by component is made up of hardware, software and services. [@HealthITplus]

The main reasons fueling the significant growth in the healthcare information technology market are increasing pressure to reduce healthcare costs, growing demand to integrate healthcare systems, high rate of return on investment, financial support from the U.S. government, government initiatives, the rise in aging population, growing demand for CPOE adoption in order to reduce medication errors and the rise in incidences of chronic disorders, according to the report.

Analysts and industry officials say they anticipate a series of related changes to affect health care in 2014, including:

  • records. Adoption of electronic records will increase in 2014 and spur industry-wide change. That’s in part because more physicians will have to use the records to participate in Medicare. This will lead to higher quality and efficiency because providers will be better able to track what works — and what doesn’t.
  • Private exchanges. Insurers will bring more private exchanges to the workplace, and people will begin to understand they have to control their own health costs instead of relying on benefit-heavy insurance plans to do that for them.
  • Pricing transparency. Regardless of the political storms surrounding the law, the health industry is proceeding with the assumption it is here for good. That will lead to more transparency in the pricing of health services.

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