I’ve been in the healthcare IT industry for a little over 10 years now and I’ve noticed that 2005 feels alot like 1999 in terms of healthcare IT mindshare, reporting, and investments. I think much of the reason for the resurgence in health IT these days is due to President Bushâ€™s Spring 2004 call for the creation of electronic medical records (EMRs) for most Americanâ€™s within 10 years.
I was a co-founder of a healthcare dotcom that started in ’98 and was sold back in 2001 (we ran out of money). Things looked bleak from 2001 through 2003 for healthcare IT but according to a Kalorama Information report entitled The U.S. Market for Clinical Information Systems we look pretty good for the next 10 years.
According to Kalorama:
Between 10% and 15% of hospitals in the U.S. already have some form of a simple clinical IT system, such as a CPOE (computerized physician order entry) record systems, according to The U.S. Market for Clinical Information Systems. However, this new report predicts that even if only 15% to 20% of hospitals move toward adopting complete, â€œinteroperableâ€? data management systems, a multi-billion dollar market opportunity for the IT industry would be created.
As we all know, the basic costs for a hospital to automate simple administrative and clinical data can range from a few million dollars to $50 million, depending on the size of the hospital and the deployment and integration strategy. If the Kalorama report is to be believed, the healthcare IT market could top $40 billion by the end of this decade. Not a bad industry to be in right now.