State, local health IT spending projected to be $10B by 2015

Market growth expected for electronic health records, health information exchanges and telehealth

Spending on state and local health information technology systems is expected to rise by 19 percent during  the next five years due to federal economic stimulus law incentives and other trends, according to a new report from the Input market research firm.

The total addressable market for health IT is projected at $9.9 billion in 2015, up from $8.3 billion this year, according to the report issued today.

Electronic health record (EHR) system spending is expected to be $2 billion of the total in 2015, up from $1.1 billion currently, wrote author Kristina Mulholland, senior analyst for the company's health care and information systems practice.


Related stories

Stimulus stokes $23B in health IT opportunities

EHRs: HHS walks a tightrope


State and local health IT also is expected to benefit from economic stimulus law funding for community-based health care center modernizations and e-record systems, Medicaid management information systems, health information exchanges and record-locator services and for public health systems and telehealth, the report said.

For example, $2.5 billion in stimulus law funding for community-based health care centers will drive spending for facilities modernization, e-medical records and workforce, the report said.

States will spend for Medicaid management systems as a result of increased enrollment due to continued unemployment and to reduce fraud and improve quality in Medicaid, the report added.

 

About the Author

Alice Lipowicz is a staff writer covering government 2.0, homeland security and other IT policies for Federal Computer Week.

Featured

  • Contracting
    8 prototypes of the border walls as tweeted by CBP San Diego

    DHS contractors face protests – on the streets

    Tech companies are facing protests internally from workers and externally from activists about doing for government amid controversial policies like "zero tolerance" for illegal immigration.

  • Workforce
    By Mark Van Scyoc Royalty-free stock photo ID: 285175268

    At OPM, Weichert pushes direct hire, pay agent changes

    Margaret Weichert, now acting director of the Office of Personnel Management, is clearing agencies to make direct hires in IT, cyber and other tech fields and is changing pay for specialized occupations.

  • Cloud
    Shutterstock ID ID: 222190471 By wk1003mike

    IBM protests JEDI cloud deal

    As the deadline to submit bids on the Pentagon's $10 billion, 10-year warfighter cloud deal draws near, IBM announced a legal protest.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.