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State & Local Health Care Technology Spending To Reach $10.8 Billion By 2012

Posted on: Monday, 14 January 2008, 18:00 CST

RESTON, Va., Jan. 14 /PRNewswire/ -- Annual spending on Health Care IT will reach $10.8 billion by 2012-led by growth in the market for Medicaid Management Information Systems (MMIS), according to a report recently released by INPUT, the authority on government business. A wave of investments in MMIS will drive $3.9 billion of growth in the U.S. state and local Health Care IT vertical.

"With as many as 29 of the 36 vendor-operated MMIS systems coming up for re-compete between now and 2012, we will see a generational overhaul in the way states manage Medicaid," said Chris Dixon, manager, state and local industry analysis for INPUT. "The rising cost of providing health care for the nation's uninsured is forcing states to look at more innovative and technologically savvy ways to contain these costs. States will be looking for vendors to step forward with solutions for business intelligence, integration, and outsourcing of MMIS business processes."

Modernization of Medicaid Management Systems will be the best point for introducing Health IT-related concepts and technologies at the state and local levels during the forecast period. Immediate demand will be for such traditional MMIS needs as integration with other social services, outsourced eligibility processing, and elimination of waste, fraud, and abuse. However, vendors that can meet these immediate needs with an eye toward emerging demands to move the U.S. health care system toward a quality-based orientation will be best positioned over the long run.

"'Health IT' has become a buzzword that encompasses a wide range of concepts and technologies that can promote the quality-based transformation of the U.S. health care system," said Dixon. "This goes beyond electronic health records systems and regional health information organizations. In the end, it's about bringing business intelligence and information exchange to all aspects of health care. For state and local governments, business intelligence is at the heart of preventing the outbreak of diseases, promoting wellness, improving the quality of care, and reigning in insurance costs. The next few years will see vendors and governments begin looking beyond the usual short-term, reactionary approaches to cost containment."

Produced by INPUT as part of its State and Local IT Industry Analysis program, the State & Local Health Care IT Market, 2007-2012 industry report provides a comprehensive analysis of the U.S. state and local government market for information technology (IT) within the health care vertical. The Health Care IT market encompasses the technology that supports government organizations responsible for the administration of public health agencies, community health services, and health insurance programs.

INPUT's report, State & Local Health Care IT Market, 2007-2012, is available on INPUT's website at http://slhealthcare.input.com/.

About INPUT

INPUT is the authority on government business. Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. Over 1,200 members, including small specialized companies, new entrants to the public sector, and the largest government contractors and agencies, rely on INPUT for the latest and most comprehensive procurement and market information, consulting, powerful sales management tools, and educational & networking events. For more information about INPUT, visit http://www.input.com/ or call 703- 707-3500.

Proper use of name is INPUT Media Contact: Meredith Lawrence mlawrence@input.com 703-707-3687

INPUT

CONTACT: Meredith Lawrence of INPUT, +1-703-707-3687,mlawrence@input.com

Web site: http://www.input.com/

Source: PRNewswire

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