Demand for HIT predicted to grow 3% annually

Demand for information technology (IT) among state and local health and human services agencies is on the rise, with an annual increase of 3.1% expected over the next 5 years, according to a new report.

Deltek Inc., a software and information solutions provider, says stabilization of state and local revenue streams, the modernization of IT systems, increased federal direction and mandates, and health insurance exchange implementation are key forces in the increased demand within the healthcare IT market.

“Despite the political rancor over federal healthcare reform, federal, state, and local leaders are committed to reducing the burden of healthcare costs on Medicaid, children’s health insurance, and public healthcare facilities,” says Chris Dixon, Deltek’s senior manager of state and local industry analysis. “The real question is how governors want to use IT to attack the major concerns of reducing improper payments and moving the health insurance programs toward quality-based care.”

Deltek’s new research report, “Health Care and Social Services Market, 2012-2017,” predicts that the demand for healthcare IT will grow from $16.6 billion in 2012 to $19.3 billion in 2017, with a total of $2.7 billion in new spending over that period. The report concludes that, after a long period of increased health and human services expenses for state and local governments, they must look for ways to curb costs on benefits administration. Healthcare IT is believed to offer the answer.