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Healthcare IT

Healthcare IT budgets will continue to grow: analyst

By Crystal Low | 2 June 2009

Despite the economic downturn, healthcare organisations are increasing the amount they spend on information technology (IT) solutions and services, according to figures from Frost & Sullivan.

Chief Information Officers (CIOs) and IT managers of hospitals are hoping that investments in healthcare IT will lower medical errors and costs over the long term, observes the analyst firm.

“Healthcare providers no longer consider IT solutions and services an unnecessary cost burden, but a critical value provider,” said Frost & Sullivan consultant Dr. Pawel Suwinski.

In public and private hospitals, IT budgets are expected to increase from 2009 through to 2011 in India, China, Southeast Asia (Indonesia, Malaysia, Thailand, Singapore, and the Philippines), Australia and New Zealand.

However, the future trend concerning healthcare IT adoption varies from country to country. In India, the focus is on replacing legacy systems. In Australia and Southeast Asia, hospitals have the basic administrative solutions in place and are now concentrating on adoption of clinical information systems and electronic medical records.

A lack of industry standards in countries such as India and China may also be a major hindrance to the adoption of healthcare IT, predicts the report.

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