A research report analyzing I.T. spending by state and local health agencies predicts steadily increasing outlays during the next five years. According to the report, issued by Herndon, Va.-based Deltek, a research and services firm, spending will grow from $16.6 billion in 2012 to just over $19 billion in 2017. The expansion amounts to a 3 percent annual growth rate in I.T. spending.

Deltek says that key drivers of the reimbursement expansion include efforts to implement health insurance exchanges under federal health reform and to trim waste and overpayments to providers. In that light, states are in line with federal goals to reduce Medicaid fraud and waste, a summary of the report notes.

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