Headline News? Healthcare IT Spending on the Rise…

Headline News? Healthcare IT Spending on the Rise… Not much to comment on when figures speak for themselves. According to the latest Gartner report, healthcare IT spending is still on the rise with healthcare facilities’ budgets for business processing and IT services to show a 23% growth by 2011. Between 2006 and 2007 alone, facility contracts for information systems have increased by 13%:

The healthcare provider industry (worldwide) will spend $77.3 billion in 2007 on IT (hardware, software, IT services, internal services and telecommunications). The compound annual growth rate (CAGR) from 2006 through 2011 will be 5.2%. Key growth areas in 2007 will be software and services.

Shifting money figures usually reflect a more profound, behavioural change. And here we go:

In 2005, 8% percent of healthcare facilities were considered early adopters of health IT, while last year, 33% of facilities were considered early adopters, which can be attributed to changes in how executives perceive the need for information technology, according to John Lovelock, analyst and director of healthcare research at Gartner.

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