Massive growth in HIE spending expected by 2014

A new survey from Black Book Rankings on the health information exchange market indicates more industry technology executives are exploring adoption at this point over actual implementation of the technology. Still, it predicts massive growth in HIE spending by 2014.

The survey, of 4,000 healthcare and insurance organization executives, found that the majority of U.S. hospitals (80 percent) and physicians (97 percent) have yet to implement an HIE system, Healthcare IT News reports. Among other findings from the Black Book report:

  • 28 percent of respondents are cautiously increasing HIE spending before the end of 2012, but eight of 10 providers expect organizational HIE budgets to significantly increase by 2014;
  • 83 percent of hospitals and 17 percent of all providers either already have or plan to participate in an HIE solution;
  • Ninety-five percent of all providers expect to be included in at least one HIE interface by July 2013;
  • Ninety-eight percent of those providers with HIE strategies in place will focus entirely on community or regional exchanges for the foreseeable future, rather than national health record exchange initiatives.

"The current driving forces of HIE adoption are clearly apparent: accountable care implementation, Meaningful Use implementations, the need for care coordination, outcome-based reimbursement challenges, available funding, and opportunities for regional stakeholder participation," Black Book senior partner Doug Brown said in a statement.

Overall, hospitals are holding the line on spending, though among those planning an increase in capital investments, health IT is at the front to the line, according to a recent survey by group purchasing organization Premier Inc.

A recent Fitch Ratings survey revealed similar results, with those who plan increases in capital spending over the next five years citing health IT as an important way to help them control costs, improve quality and adjust to new reimbursement models.

The firm grip on the purse strings comes as PricewaterhouseCoopers predicts U.S. consumer healthcare spending in the United States will grow at a historically low rate of 7.5 percent next year. PwC foresees the industry continuing efforts to contain costs, cost-conscious patients using fewer services and employers trying to hold down expenses.

To learn more:
- here's the Black Book announcement
- check out the Healthcare IT News article
- read PwC's estimates

Suggested Articles

Mahmee, a startup focused on maternal and infant health, just closed a $3 million funding round that includes Mark Cuban and Serena Williams.

When it comes to telemedicine, more physicians are getting on board, with interest doubling over a three-year period.

Just as it promises to increase speeds and reduce latency for consumers, 5G technology also has the potential to transform how healthcare is delivered.