Health Care IT 2008 outlook

Implications: 2008 will be a difficult year for many Health care facilities due to Medicare reimbursement cuts. It is likely that IT spending will not increase significantly due to budget constraints. Specifically, independent facilities may wait on all but the mandatory upgrades or installations.

Analysis: While it is true that IT systems can make staff more productive and the government wants health care to adopt an electronic record, the fact is that hospitals and imaging centers are getting their reimbursements cut and seeing more indigent care. Most hospitals have some existing IT infrastructure and Information system today.  The cost to add on to these systems or replace them is extreme compared to the amount of revenue enhancement they provide. Hospitals are looking for new technology that will allow them to increase revenue.
Large multi facility networked systems will likely continue IT upgrades, more than stand-alone or independents, in order to maintain the communication between facilities.