Healthcare Facilities

The US healthcare system is a highly complex system and is characterized by non-linear, dynamic and uncertain traits. The presence of multiple stakeholders often leads to inefficiencies and misaligned incentive structures. Despite its complexities, the high levels of expenditure create a geographic market that cannot be ignored. The future of the U.S. healthcare system is expected to be affected by the public health crisis. Currently, the U.S. Congress is struggling to provide healthcare for approximately 34 million seniors. The cost of caring for the senior population is likely to increase rapidly, as 76 million baby boomers begin to retire and healthcare workforce shortages continue to pressurize the U.S. healthcare system.

'The U.S. healthcare system is in a difficult position as it tries to deliver quality care to a rapidly ageing population while reducing the actual cost of healthcare,' notes the analyst of this research service. 'Healthcare information technology (HIT) is expected to have an important role in the future of the U.S. healthcare system due to its ability to assist or directly address with these issues.' The electronic health record (EHR) segment represents the most promising healthcare IT market. This is due to the high level of industry focus on EHR from multiple stakeholders including the government, healthcare providers, employers and insurance companies. Presidential targets and key initiatives promoting the adoption of EHR act as a long-term driver of growth, providing increased market opportunities. The federal government is placing heavy emphasis on this segment through financial investments on demonstration projects and efforts driving the establishment of universal standards.

IT Vendors to Promote the Benefits of Healthcare IT Solutions to Achieve Increased Acceptance

Many physicians are unwilling to adopt healthcare IT solutions due to the lack of technical expertise and staff, perceived changes to the workflow, as well as the absence of a need for such adoption. Such resistance is more prevalent in independent physician practices than among salaried physicians due to their roles in the decision-making process. 'The benefits of adopting HIT are often realized at the employer and insurance plan level, as opposed to the provider level,' explains the analyst. 'Several physicians are reluctant to adopt HIT since the return on investment is difficult to measure and is not often seen in the short-term. ' However, this barrier is being reduced, particularly in the EHR and e-prescribing arena due to increased third party funding.

As the HIT market is currently in its infancy with low adoption rates across many segments, there are significant opportunities for HIT vendors to make a foray into the market. Vendors should educate third-party payers on both, the tangible and intangible benefits that they can receive by funding IT solutions for providers. Moreover, vendors should seek to collaborate with insurance companies and employers to drive the adoption of HIT within specific regions. The ability to highlight product capabilities and features to physicians can also be an additional step in the same direction.