Hospital Information Systems Market Set for Expansion
A new study found that through 2020, the hospital information systems market will increase nearly 59 percent to $17.6B.
- In the healthcare landscape, there have been several popular technology trends that become industry standards. Typically this happens because the technology creates a more effective way of operating. The most recent example of this is electronic health records (EHRs), which have become have become an industry standard thanks to government incentive programs.
However, according to a new study from research company Frost & Sullivan, the hospital information systems market is poised to become the next booming trend. This is an element of health informatics that focuses mainly on administrative needs. This is happening because of the way that the EHR market has expanded and matured, causing the rest of the hospital systems to follow suit.
According to the study, 95 percent of non-clinical and 90 percent of clinical information systems have adopted at least a basic version of a hospital information system. However, now that a “post-EHR era” has started that includes healthcare reform, changing reimbursement models, competitive threats from non-traditional providers and a rise in the health insurance marketplace, investment in new hospital information systems is going to pick up.
The study found that the investment in hospital information systems will increase at a compound annual growth rate (CAGR) of 5.7 percent between 2014 and 2020. In 2013, this marketplace was valued at $11.1 billion. By 2020, that is expected to increase by 58.9 percent to $17.6 billion. Administrative systems will grow the fastest, at a CAGR of 10.4 percent over the forecast period.
“Hospitals understand they must establish new business models in order to survive under a dramatically transformed provider landscape,” said Frost & Sullivan Connected Health Principal Analyst Nancy Fabozzi. “Most impactful will be cuts in Medicare reimbursement required by the Affordable Care Act as well as the shift to value-based reimbursement by commercial payers. Additional concerns are the growing competitive pressures from retail pharmacy clinics and third-party telehealth providers as well as the rise of the health insurance marketplace that requires individuals to select their own health plans and provider networks.”
With the push toward value-based care in full effect, hospitals need to ensure that they are doing everything possible to make quality a high priority. This means healthcare providers need to be proactive to attract and engage new patients, while ensuring that operations are financially viable. The right administrative software can offer a number of cost savings benefits including managing labor costs, driving productivity with new workflow tools, engaging consumers and maximizing operational efficiencies.
