HealthTech News: Maturing EHR Market Encourages Hospitals to Upgrade Business and Administrative Information Systems

HealthTech News: Maturing EHR Market Encourages Hospitals to Upgrade Business and Administrative Information Systems


Maturing EHR Market Encourages Hospitals to Upgrade Business and Administrative Information Systems
Frost & Sullivan find interest growing in non-clinical information systems as hospitals seek new business models in a changing healthcare environment
Hospitals and health systems have made progress laying the building blocks for creating robust clinical information technology systems. Now comes the heavy lifting–as they look to connect the care continuum, protect patient records in an increasingly mobile world and turn all of those bits and bytes of data they are collecting into actionable information.
A good percentage of hospitals and health systems have deployed technologies that improve patient documentation, advance clinical decision support and evidence-based protocols, reduce the likelihood of medication errors, and rapidly restore access to data in the case of a disaster or outage.
That wasn’t always the case, even as recently as 2007 when just 58 percent of Most Wired hospitals had systems capable of producing real-time alerts on drug-to-drug interactions. Fast forward six years and 100 percent of Most Wired hospitals now possess that capability, a major step in improving patient safety by reducing the likelihood of medication errors.
Going back even further, in 2004, only 27 percent of physician medication orders at Most Wired hospitals were done electronically. That number is now up to 69 percent and climbing.
What’s driving these improvements? Federal regulation for starters. The Health Information Technology for Economic and Clinical Health Act of 2009, more commonly referred to as HITECH, mandates that hospitals and physicians not just adopt health IT, but use it in a meaningful way.
New analysis from Frost & Sullivan’s U.S. Hospital Information Systems Overview and Outlook, 2013–2020: Managing Information in an Era of Reform finds the market for information systems in U.S. hospitals will grow at a compound annual growth rate (CAGR) of 5.7 percent between 2014 and 2020.
According to the report, “The urgent requirement for hospitals to improve the quality of care, proactively attract and engage new patients, and ensure financial viability will accelerate the demand for ‘next-generation’ financial and administrative information systems.  Administrative information systems, in particular, offer robust opportunities for IT vendors as this area has been somewhat ignored in recent years due to the scramble to implement EHRs. The need to better manage labor costs, drive productivity with new workflow tools, engage consumers, and maximize operational efficiencies will see this segment grow.”
Press Release Below.
SOURCE: Frost & Sullivan, www.frost.com
MOUNTAIN VIEW, Calif., Feb. 4, 2015 /PRNewswire/ — The mature U.S. hospital information systems (HIS) market, which is broadly made up of the clinical and non-clinical segments, is expected to see higher growth opportunities in the non-clinical segment over the next seven years.
Despite high penetration rates – around 95 percent for non-clinical and 90 percent for clinical information systems – a new “post-EHR era” is taking shape in hospitals that is driving the adoption of non-clinical systems. These changes will be needed to meet a multitude of challenges associated with healthcare reform, including changing reimbursement models, competitive threats from non-traditional providers, and the rise of health insurance marketplaces.
New analysis from Frost & Sullivan’s U.S. Hospital Information Systems Overview and Outlook, 2013–2020: Managing Information in an Era of Reform finds the market for information systems in U.S. hospitals will grow at a compound annual growth rate (CAGR) of 5.7 percent between 2014 and 2020.
  The U.S. HIS market was valued at $11.1 billion in 2013.
  Total market revenue is expected to increase steadily, reaching $17.6 billion by 2020, representing a 58.9 percent rise from 2013.
  Administrative information systems will be the fastest growing market segment with a CAGR of 10.4 percent over the forecast period.
  Financial information systems will follow, registering a CAGR of 9.7 percent over the same period.
  Clinical information systems will grow more slowly than the other segments with a CAGR of 0.6 percent.
For complimentary access to more information on this research, please visit: http://bit.ly/1uWiUoA.
“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 (@NancyFabozzi).
“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.”
The urgent requirement for hospitals to improve the quality of care, proactively attract and engage new patients, and ensure financial viability will accelerate the demand for ‘next-generation’ financial and administrative information systems.  Administrative information systems, in particular, offer robust opportunities for IT vendors as this area has been somewhat ignored in recent years due to the scramble to implement EHRs. The need to better manage labor costs, drive productivity with new workflow tools, engage consumers, and maximize operational efficiencies will see this segment grow.
U.S. Hospital Information Systems Overview and Outlook, 2013–2020: Managing Information in an Era of Reform is part of the Connected Health (http://www.healthcareIT.frost.com) Growth Partnership Service program, which also includes research in the following markets: health information exchange, health data analytics, telehealth, emerging wireless technologies, acute care information systems, enterprise clinical information systems, and billing and revenue cycle management systems. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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U.S. Hospital Information Systems Overview and Outlook, 2013–2020: Managing Information in an Era of Reform
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Corporate Communications – North America
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