Health Information Technology Market Will Show "Impressive" Worldwide Growth, Scientia Advisors Finds.But Shifting Government, Diagnostic and Therapeutic Trends Could Displace Unwary Players' Market Share
BOSTON & PALO ALTO Palo Alto, city, California
Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif. -- Health information technology (HIT) is the fastest growing segment of the $1 trillion global health care marketplace--and its "impressive" 11 per cent combined annual growth rate is likely to continue through 2013, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. a Scientia Advisors global industry review released today.
But, in order to remain competitive, the study found, companies must factor in government incentives, new clinical decision-making and electronic health record requirements, as well as emerging competitors and markets in Asia and elsewhere in the developing world.
Scientia Advisors, based in Cambridge, MA and Palo Alto, CA, is a global management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business
service industry - an industry that provides services rather than tangible objects firm specializing in growth strategies for major and emerging companies.
"Historically, therapeutics and medical devices have captured more than 90 per cent of worldwide healthcare product sales," said Harry Glorikian, Scientia Advisors' managing partner.
"But with declining marginal benefits from new interventional products and greater emphasis on appropriate use of existing interventions, we project accelerating HIT-related sales." By 2013, indications are that HIT sales will grow from four per cent of the worldwide health care products market to five per cent--representing a 25% increase in HIT's market share.
Key trends and growth drivers:
* In the next few years, the Years, The
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See : Time study found, most incremental Additional or increased growth, bulk, quantity, number, or value; enlarged.
Incremental cost is additional or increased cost of an item or service apart from its actual cost. HIT-related revenues will be captured in North America--especially in the US, the study found. But faster growth elsewhere, most notably in China and India, will present substantial opportunity, long term.
* HIT expenditures in the US will be heavily weighted toward in-and outpatient electronic health records (EHR (Electronic Health Records) Computerized medical records that bring patient care into the digital age and save time, money and lives. The push to adopt comprehensive electronic documentation between doctors' offices and hospital settings intensified after the RAND ) at the expense of specialty/departmental information systems and other capital investments
* Leading players with large installed bases, proven products and streamlined routes to meaningful use of EHRs are likely to gain share.
* Lower risk, lower cost approaches such as remote hosting may become popular for certain small hospitals. In the current economic climate, HIT companies will lend hospitals the capital required to finance IT investments.
* Clinical decision support systems (CDSS CDSS California Department of Social Services
CDSS Clinical Decision Support Systems
CDSS Country Dance and Song Society
CDSS Canadian Down Syndrome Society
CDSS Community Day Secondary Schools (Malawi) ) will likely have a profound impact on clinical diagnostics and therapeutics.
* Over the long term, disruptive innovations such as open source software and "software as a service" could lead to dramatically lower pricing.
The review also assessed: HIT's likely impact on "front" and "back office systems," clinical testing, diagnostics and pharmacies; how government mandates in North American North American
named after North America.
North American blastomycosis
see North American blastomycosis.
North American cattle tick
see boophilusannulatus. , Germany, Norway, the UK, China and Australia will affect worldwide HIT opportunity; how the US stimulus bill will impact EHR, CDSS and the adoption of HIT by hospitals of various sizes; and the consequences of CDSS for healthcare market participants.
The review, funded by Scientia itself, was based on extensive primary and secondary research and proprietary analytic methods. "Our studies allow us to provide strategic advice that is deeper, more defensible de·fen·si·ble
Capable of being defended, protected, or justified: defensible arguments.
de·fen and more expansive than that offered elsewhere," Glorikian said. "We are pleased to share our insights with clients and prospective clients and to discuss companies' strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. needs."
The review is available for download from Scientia's Web site at www.scientiaadv.com.
Scientia Advisors, based in Cambridge, MA and Palo Alto, CA, is a global management consulting firm specializing in growth strategies for health care and the life sciences.