Gartner Says Healthcare Organizations Must Adopt Internet-Derived Technologies by 2005 to Survive; Analysts to Discuss Future of Industry during Gartner's e-Healthcare Summit.

Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--May 25, 2000

By 2005, healthcare organizations will need to move toward external collaboration and relationships driven and supported by the Internet, rather than internal proprietary capabilities, to be successful in the marketplace, according to Gartner Group, Inc. (NYSE: IT and ITB). The future of IT healthcare will be examined during Gartner's e-Healthcare Summit, June 28-30, at the Westin Copley Place in Boston, Massachusetts.

"The connectivity of the Internet will spawn a two-tier competitive landscape," said Dave Garets, vice president and conference chair for Gartner. "Visionary healthcare organizations will participate in networks that include patients/members and infomediaries. Participants will routinely exchange transactions, which will establish eligibility, approve referrals, adjudicate claims, and reference and update personal health records owned by patients - all in real time."

Gartner analysts predict that more than 80 percent of healthcare organizations will consider alternatives to in-house IS staffing by 2003. The challenge for these organizations will be managing this transition.

"Several factors, such as a shortage of IT skills, rapidly evolving technologies, speed-to-market requirements, cost constraints and technology/application commoditization are increasingly calling into question an internal IS strategy for healthcare organizations," said Matt Duncan, research director for Gartner. "Many healthcare organizations must begin to seek alternative approaches, including outsourcing and application hosting, that enable them to efficiently and cost-effectively support IT requirements."

Enormous changes are sweeping the healthcare industry, and how organizations manage these compounding challenges will affect their success or failure. With a combined IT and business focus, Gartner's e-Healthcare Summit will take a closer look at how today's healthcare organizations can realize better value from their IT investments to lower costs, improve quality and increase patient satisfaction.

During this summit, Gartner analysts will examine how and when healthcare organizations should integrate e-health processes and Internet initiatives, and how they should use a "common sense" approach to meeting HIPAA mandates. Other topics to be discussed include which technologies and applications healthcare organizations will require to succeed and how healthcare organizations can improve the integration of their overall business and IT strategic plans.

Additional information on Gartner's e-Healthcare Summit can be found at http://www.gartner.com/healthcare/usa. A complete agenda, travel information and conference brochure can be found at this Web address.

About Gartner

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