Budgetary and performance challenges faced by the healthcare industry will present a significant opportunity for ICT vendors in 2014, particularly as overall ICT spending in the industry remains healthy, according to Ovum.
In its Healthcare Technology Spending Through 2018: Source Segmentation (December 2013) forecast, the analyst firm indicates the healthcare industry will generate global ICT revenues of $US185 billion by 2018, up from $US110bn at the end of 2012. The figure represents a compound annual growth rate (CAGR) of eight per cent.
“Although many healthcare systems face overall tightening budgets, public systems in particular, our enterprise survey and various healthcare organisations’ reported results show significantly different growth rates in projected ICT spending,” Ovum head of healthcare technology practice, Charlotte Davies, said.
Ovum said government incentives continue to spur spending, as does the journey towards effective electronic health records (EHRs), data digitisation, and the rise of patient relationship management (PRM).
Additionally, the firm’s 2014 Trends to Watch report claims business intelligence (BI) and analytics spending will also see increased traction over the next few years, with positive impact across computer-assisted coding (CAC), clinical documentation improvement (CDI), and Big Data.
“Overall, we believe that attitudes to ICT in healthcare are reaching a tipping point, as more budget holders realise its intrinsic value and necessity to effective healthcare transformation and increased efficiency, government project failures notwithstanding.”
At the same time, though, the large aggregate sum of these investments will cause healthcare industry organisations to seek proven business expertise, flexibility, and competitive pricing from vendors.