State and Local Health Care Spending on Information Technology Increases More Than 50 Percent by 2009.RESTON, Va. -- IT System Efficiencies and Electronic Records Drive Increase; Outsourcing To Play Significant Role Government Information Technology (IT) spending for state and local health care will rise from roughly $6 billion in FY2005 to over $9 billion in FY2009, a 50 percent growth rate over five years, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a report released today by INPUT, the quantifiable leader in government market intelligence. The projected increase is driven by requirements for greater health care system and administrative efficiencies, as well as continued investments in Medicaid Management Information Systems (MMIS MMIS Medicaid Management Information System (various US states) MMIS Microsoft Mobile Information Server MMIS massively multiparticipant Internet sport MMIS Master of Management Information Systems ). In addition, the advancement of electronic records management is serving as a catalyst for increased IT expenditures. In the State and Local Health Care MarketView report, INPUT notes that Medicaid continues to be the primary market driver. "Double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" state and local health care spending has continued unabated for the last ten years. This number represents administrative charges plus benefit allotments," said James Krouse, state & local market analysis manager at INPUT. "State and local governments are being forced to more stringently manage these costs. Officials are reviewing areas for improvement, focusing on system and operational consolidation and centralization cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. . As such, investments are being made toward improved systemic and administrative initiatives." Also driving the increase in health care IT spending is the movement towards electronic records. The Department of Health and Human Services Noun 1. Department of Health and Human Services - the United States federal department that administers all federal programs dealing with health and welfare; created in 1979 Health and Human Services, HHS (HHS HHS Department of Health and Human Services. ) recently announced a new program to research costs and resources associated with transforming paper-based medical records to digital computer-based records. The 10-year plan is intended to promote the adoption of electronic recording systems by doctors, hospitals, and clinics - it is estimated that less than 15 percent of hospitals and between 10 and 30 percent of physician practices currently have electronic health systems implemented. As the HHS program reaches maturity, the initiative will contribute significantly to the growth in the health care arena, with initial efforts likely seen as early as FY2006. "As state and local governments factor in the increased administrative burdens and costs associated with centralization, consolidation, and computer-based records management, as well as compliance issues with meeting Health Insurance Portability and Accountability Act The Health Insurance Portability and Accountability Act (HIPAA) was enacted by the U.S. Congress in 1996. According to the Centers for Medicare and Medicaid Services (CMS) website, Title I of HIPAA protects health insurance coverage for workers and their families when (HIPAA (Health Insurance Portability & Accountability Act of 1996, Public Law 104-191) Also known as the "Kennedy-Kassebaum Act," this U.S. law protects employees' health insurance coverage when they change or lose their jobs (Title I) and provides standards for patient health, ) mandates, they are finding outsourcing is the most appropriate option," said Krouse. "The cost versus benefit decision definitely favors the transferal of systems and direct administration responsibilities permanently to private sector partners under long-term contracts." INPUT predicts this outsourcing trend to continue through FY2007 before budgetary pressures eventually constrain the Medicaid program and level-off spending increases. Krouse added, "Currently, however, there is an excellent opportunity for industry to reap the benefits of state and local health care IT outsourcing." To download an executive summary of INPUT's State & Local Health Care MarketView report, go to: http://healthcare.input.com. About INPUT: INPUT is the quantifiable leader in government market intelligence. Based in Reston, Virginia Reston is an internationally known planned community whose goal was to revolutionize post-World War II concepts of land use and residential/corporate development in American suburbia. , INPUT provides market development services, advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal , and software solutions to help clients secure new business, address new markets, and manage business development. For more information about INPUT visit www.input.com or call 703-707-3500. Proper use of name is INPUT |
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