U.S. Healthcare Provider IT Spending to Increase to $17.3 Billion by 2007, IDC Reveals

FRAMINGHAM, MA – JULY 23, 2003 – IT spending among healthcare providers in the United States will increase from $15.1 billion in 2002 to $17.3 billion by 2007, a new study from IDC reveals. Faced with imperatives to change in areas such as patient safety and federal regulations, the healthcare industry is embarking on a new era of development. Within this changing environment, healthcare providers are increasingly viewing IT as a way to address several ongoing challenges.

"A new paradigm is slowly emerging in healthcare, that of a system in which consumers bear more of the financial burden of their healthcare," commented Jocelyn Young, program manager of U.S. Vertical Industry Research, Healthcare at IDC. "Many IT investments that healthcare providers are making are in support of this new paradigm, driven by the industry's focus on patient safety and industry endorsement of specific technologies to improve patient safety, such as computerized physician order entry (CPOE) initiatives."

The following key findings are presented in this study:

Healthcare providers will continue to spend strongly on IT over the next five years, averaging 3–4% in yearly growth rates over the forecast period.

Outsourcing will be an area in which more hospitals and health systems pursue opportunities with vendors,especially as they focus on core, mission-critical endeavors, such as patient care.

Over half of healthcare providers IT investment will be spent on technology to support clinical, rather than administrative, functions.

IDC's new study, U.S. Healthcare Provider IT Spending Forecast, 2002-2007 (IDC #29722), presents IDC's latest forecast for IT spending by healthcare providers in the United States. IDC forecasts the market by IT segment (hardware, software, and IT services) and by sub-industry (hospitals, offices and clinics, and other healthcare delivery services). IDC also presents a breakdown of healthcare provider IT spending by solution area, such as clinical information systems (CIS), physician practice management, point of care solutions, disease management, and back office solutions.

For additional information about IDC's U.S. IT Opportunity: Healthcare research program, please contact Virginia Lehr at

508-935-4188 or email vlehr@idc.com.

To purchase this document, call IDC's sales hotline at 508-988-7988 or email sales@idc.com.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a division of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com

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