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Increased Technology Investment in Health Industry Collaboration for 2007, Predicts Health Industry Insights

Posted on: Thursday, 11 January 2007, 09:01 CST

In a newly published report unveiling Top 10 Predictions for Health Industry in 2007, IDC's Health Industry Insights predicts an increase in information technology (IT) investments to support collaboration across the health ecosystem. The research and advisory firm expects the industry to make fewer investments this year in daily business operational processes, and spend more money in technologies and processes that drive information sharing and decision making across the payer, provider and life science market segments. Of the ten key changes predicted to happen in 2007, more than half address the issue of IT investments in cross-industry collaboration.

"In today's environment, we see the lines between the life sciences, provider and payer sectors continue to blur as each sector is driven to improve quality and patient safety and reduce healthcare costs," says Scott Lundstrom, vice president of research at Health Industry Insights. "Among the significant changes unfolding, we expect to see increased investments in areas that support better cross-industry collaboration, like electronic health records, personalized health, pay for performance, and data warehousing and analytics."

Major predictions cited in the report include:

Rise in Demand for Real-Time Analytics

According to the report, decision making at the point of care or service will drive real-time analytics next year. Health Industry Insights expects this drive to have major impacts across the health ecosystem, and specifically anticipates: 1) process analytical technologies (PAT) initiatives to drive pharmaceutical manufacturer investment in real-time analytics to mitigate risk and improve patient safety, 2) personalized health research dividends to emerge in commercial clinical care software products, and 3) payers to prioritize real-time technology investments in personal health records (PHRs), payer-based health records (PBHRs), electronic health records (EHRs) and provider payment initiatives.

Half of All Clinical Trials to Use Electronic Data Capture (EDC)

In 2007, Health Industry Insights predicts fifty-percent (50%) of all new clinical trials to use electronic data capture to help improve operational effectiveness and, eventually, lead to dramatic improvements in the timeliness and accuracy of safety information for new drugs. Adds Lundstrom, "We're now in an era where paper-based data capture is the exception versus the norm. This is an exciting time for the clinical trials and drug development industry, as the rewards of using EDC will underpin fast-fail trial design initiatives."

Pay for Performance to Drive Significant IT Investment and Cross-Industry Collaboration

With an increased focus across the health industry to provide higher quality of care, Health Industry Insights' analyst team anticipates significant IT investments in technologies that enable electronic information sharing between payers, providers and life science companies. For healthcare payers and providers, the report details how Pay for Performance (P4P) will drive these investments. Among the predictions for P4P in 2007, Health Industry Insights expects large, self-insured employers to offer grants to providers who invest in electronic medical records (EMRs) and participate in their P4P programs.

Security Woes Impact 2007 Budgets

For this prediction, Health Industry Insights expects security investments will focus on protecting health information delivered through web services in 2007. "As the global clinical workforce becomes increasingly mobile, we're going to see a major focus on the security vulnerabilities in healthcare. In particular, we expect healthcare providers trying to implement EHRs and other web-based services to really up their investments in security this year," says Lundstrom.

The full report, entitled "U.S. Health Industry 2007 Top 10 Predictions" (Doc # HI204993), is available online at www.healthindustry-insights.com.

About Health Industry Insights

Health Industry Insights, an IDC company, provides health and life sciences industry executives, and the suppliers who serve them, with market research and advisory services. The company's integrated coverage spans the entire health industry value chain and closely follows the payer, provider and life science segments, with special emphasis on developing and employing strategies that leverage IT investments to maximize organizational performance. Staffed by senior analysts with extensive industry experience, Health Industry Insights provides a portfolio of offerings that are relevant to both IT and business needs. Visit www.healthindustry-insights.com for more information.

Source: Business Wire

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