BCC estimates the U.S. healthcare IT market size at $16.38 billion in 2005 and forecasts that it will grow to $18.5 billion in 2006. By 2011 it is expected to reach $34.7 billion in sales, a 13.4% AAGR.
The hospital segment accounts for the larger portion of the market with 52.2% of sales in 2005, 51.4% in 2006 and 48.2% in 2011. The Physician/ home care/ nursing/ hospices sector will overtake hospitals by the end of the forecast period and will be worth 51.3% of the U.S. market by 2011.
The highest growth appears in physicians, home care, nursing homes, and hospices. The market for this sector of the industry was worth more than $7.7 billion in 2005. By the end of 2006 it will grow to almost $8.9 billion and, at an AAGR of 15.0%, reach more than $17.8 billion by 2011.
Report Code: HLC048A, Published: September 2006, Analyst: Barbara Breindel
INTRODUCTION
Over the last few decades technological advances in IT have enabled the better gathering, processing, management and distribution of data. Anyone familiar with the healthcare industry can testify that it is mired in an overwhelming volume of paper documents containing patient information that frequently does not get posted on the patient's chart. Unfortunately, this fact contributes to misdiagnosis and unnecessary expenditures for healthcare. This market appears to be on the brink of dramatic growth. Currently it is estimated that less than a third of all U.S. hospitals and less than 20% of physicians' offices have any form of electronic data handling capability.
The need for wider implementation of healthcare IT has been recognized by industry participants, industry observers, and by both the local and federal government. According to a 2005 study conducted by the Rand Corporation an estimated $81 billion could potentially be saved from the annual U.S. $1.7 trillion healthcare budget if IT methods were adopted.
In his 2004 State of the Union address President Bush called for universal use of electronic health records (EHR). Committees have been formed at the federal level to investigate the various aspects that need to be resolved to ease the implementation of EHRs.
SCOPE OF STUDY
This report contains:
The market for healthcare information technology in the U.S., providing an overview of the healthcare IT market
Current and future market estimates for healthcare information systems with a detailed analysis of trends and market size and forecasts through 2011
Highlights upcoming and emerging technologies, as well as new developments that are likely to impact the future of the market
Business activities on the entire major market players and a detailed profile of the top companies in the industry.
METHODOLOGY AND INFORMATION SOURCES
The primary data collection methodology for this report involved interviews with industry and government agency personnel, hospital personnel, physicians and industry observers, scientists and industry professional organizations. In addition to these primary data sources, secondary data research techniques were used in a literature search of BCC's extensive library as well as all data sources including medical and business libraries.
All data collected were analyzed to determine specific findings and make forecasts. Once these forecasts were obtained, they were validated by consultation with industry experts. Consequently, all estimates provided in this report represent a consensus opinion of BCC personnel, industry participants and industry observers. Growth forecasts are made in constant dollars based on the U.S. manufacturers' price level unless otherwise noted.
ANALYST CREDENTIALS
The BCC project director of this report holds both medical technology and advanced marketing degrees. Further supporting the analyst's knowledge in this area is extensive experience in the pharmaceutical industry, the medical device industry, and in other high-technology markets.
Report Code: HLC048A, Published: September 2006, Analyst: Barbara Breindel
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