Federal spending on health IT is likely to grow in the coming years, Angela Petty, senior principal research analyst at research firm Deltek, writes in a Washington Post's "Capital Business" perspective piece.
Petty cites a recent Deltek report that found that federal spending on health IT will grow from $4.5 billion in 2011 to $6.5 billion by 2016 (Petty, "Capital Business," Washington Post, 1/8).
The report estimated that federal health IT spending will increase by a compound annual growth rate of 7.5% between 2011 and 2016, exceeding the expected 1.1% compound annual growth rate for all non-health IT federal spending during the same time period.
Researchers said that despite overall federal budget reductions, federal health IT spending is expected to continue growing because of:
- Rising health care costs;
- The aging U.S. population; and
- The cost reductions and efficiency gains that health IT could generate (iHealthBeat, 12/20/11).
Petty adds that the omnibus spending package Congress passed in December 2011 includes $100 million for a joint Pentagon and Department of Veterans Affairs initiative to develop a unified electronic health record system.
Petty also discusses what companies seeking to take advantage of federal health IT spending can do to be successful, such as:
- Developing expertise in the technology associated with health IT projects;
- Establishing the appropriate infrastructure to handle copious amounts of data;
- Hiring or partnering with health care experts; and
- Understanding the federal market, including the requirements of Medicare and Medicaid ("Capital Business," Washington Post, 1/8).