Over the next seven years, the mature hospital information systems (HIS) market will see higher growth opportunities in non-clinical HIS segments, according to a new report from research firm Frost & Sullivan.
The report, “U.S. Hospital Information Systems Overview and Outlook, 2013-2020: Managing Information in an Era of Reform,” says current penetration rates are high – about 95% for non-clinical and 90% for clinical information systems. Still, the market for U.S. hospitals will grow at a compound annual growth rate (CAGR) of 5.7% between 2014 and 2020, with most of the growth coming from non-clinical segments.
Specifically, administrative information systems will be the fastest-growing market segment with a CAGR of 10.4%, and financial information will follow with a CAGR of 9.7% over the forecast period.
These changes will be needed for a new “post-EHR era” taking shape in hospitals, to meet healthcare reform challenges, such as changing reimbursement models, competitive threats from non-traditional providers and the rise of health insurance marketplaces, said the report.
“Hospitals understand they must establish new business models in order to survive under a dramatically transformed provider landscape,” said Frost & Sullivan Connected Health Principal Analyst Nancy Fabozzi.
“Most impactful will be cuts in Medicare reimbursement required by the Affordable Care Act as well as the shift to value-based reimbursement by commercial payers. Additional concerns are the growing competitive pressures from retail pharmacy clinics and third-party telehealth providers as well as the rise of the health insurance marketplace that requires individuals to select their own health plans and provider networks.”
The urgent requirement for hospitals to improve the quality of care, proactively attract and engage new patients, and ensure financial viability will accelerate the demand for “next-generation” financial and administrative information systems, Fabozzi said in the report.