JAN 8, 2009 4:33pm ET

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Report Predicts I.T. Spending Growth

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Health care I.T. spending will grow slowly this year despite the economic downturn, according to Health Industry Insights, a market research and consulting firm.

The Framingham, Mass.-based company, a unit of IDC, issued a report Jan. 7 outlining 10 predictions for health care trends in the year ahead.

A number of factors will contribute to continued increases in I.T. spending this year, the firm predicts. These include:
* plans by the Obama Administration to fund automation in health care;
* demands from consumers to control the cost of care;
* the desire of providers to use I.T. to improve efficiency and boost margins; and
* payers turning to I.T. to help manage costs and promote wellness, among other goals.

The company’s other predictions include:
* The Obama administration will compel health care cost control and quality improvement.
* Consumers will make greater use of the Internet to access health information.
* New products will lead to growth in remote patient monitoring.
* Payers will continue to invest in information technology to improve efficiency.
* Investment in business intelligence software will grow rapidly through 2011 with a focus on improving outcomes.
* Pilot projects of the medical home concept will emerge, but the concept will not be widely adopted this year.
* I.T. outsourcing will continue to grow.
* Pharmaceutical companies will do a massive re-evaluation of their software to cut costs.
* Those participating in clinical trials of drugs will use best-of-breed e-clinical applications.

More information is available at healthindustry-insights.com

--Howard Anderson

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A major success factor for accountable care organizations will be linking caregivers across the spectrum of care delivery. If history is any indication, that's going to be an industrywide struggle.

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