U.S. Healthcare IT Market

• Healthcare largest component of U.S. economy

  • $1.7 Trillion (15% of GDP)
  • Many state Medicaid programs in crisis
  • Baby Boomers hitting system will increase challenge

• Healthcare IT Market of $12B+ growing at ~10% (Cerner Estimates)

  • Penetration of core offerings (i.e. CPOE) remains very low

• Public and Private Sectors focused on HIT

  • National Health Information Coordinator – Dr. David Brailer
    • Regional Health Information Organizations (RHIOs)
  • Bi-partisan support ranging from N. Gingrich to H. Clinton
    • At least 18 bills introduced
      • Proposals include: grants, favorable tax treatment, reduced anti-kickback rules, HIT loans, differential reimbursement
    • American Health Information Community (AHIC) announced June 2005
      • Private-Public collaboration focused on privacy, standards, certification, & architecture
    • Hospital and Physician Office Pay-for-Performance initiatives through payers (i.e. BCBS), employers (Leapfrog), and CMS
    • RAND study to illustrate benefits of system-wide HIT investments

“…improved information technologyto prevent medical error and needless costs”

– President George W. Bush February 2, 2005, State of the Union Address

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