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.


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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.

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