Expanded Health Information Technology Contracts Must Focus on Enhancement of Efficiency and Results
In the rapidly evolving landscape of technology, the healthcare sector is experiencing a significant shift. Compared to other industries, underinvestment in IT among healthcare organizations presents a substantial opportunity for growth.
Emerging technologies, such as artificial intelligence (AI), are revolutionizing various aspects of healthcare. From disease diagnosis and surgery performance to chronic condition management and population health management, AI is making a tangible impact.
One of the most notable moves in the healthcare IT sector is Oracle's acquisition of Cerner for nearly $30 billion. This deal is seen as a bet on informatics paired with electronic health records transforming healthcare.
The use of wearable devices is expanding, providing insights about health, fitness, and more. With the ability to measure heart function, sleep habits, respiration, and exercise, a 360-degree view of patient health outside the doctor's office is becoming a reality.
Many tech giants and startups are positioning themselves in the $4 trillion U.S. healthcare system opportunity. The global healthcare IT market, driven by the potential to improve patient outcomes and clinical efficiencies, is projected to grow at a rate of 10.7% annually through 2028, according to Grand View Research.
AI is being utilised in innovative ways, such as interpreting images for cancer diagnosis and converting information from wearables to electronic health records (EHRs). AI-driven decision support software can help manage chronic diseases and route patients to appropriate care settings. Furthermore, AI can enhance teleconferencing technology for more meaningful clinical discussions.
AI-powered software is automating complex, repetitive tasks in labs, regulatory compliance, and revenue cycle management. The broader healthcare IT market is expected to be more robust due to IT systems automating tasks and providing clinical decision support.
Telehealth has been driven by technology and economics to offer convenience and a better patient experience. Data and analytics have been estimated to cut six months off the seven- to 12-year process of developing a drug, accelerating drug/vaccine/diagnostic development. Cloud computing, data, and analytics have played a crucial role in this advancement.
The U.S. healthcare system presents a $4 trillion opportunity for tech companies and startups in the healthcare IT sector. The global healthcare IT market growth is not limited to the U.S., as many technology companies and startups have entered the German health IT sector in recent years due to rising digitalization demands, advances in AI, and the increasing integration of medical technology with IT infrastructure. Major players in Germany who have gained significant market influence include companies like Ottobock, which specializes in digital prosthetics and medical technology, and other firms focusing on digital innovations such as AI-supported medical devices and digital healthcare solutions.
However, it's important to note that approximately 30% of U.S. healthcare spending, or around $933 billion, is considered wasted. The healthcare IT sector is expected to see continued merger and acquisition activity driving innovation. The acquisition of Cerner by Oracle is a notable example of investment in the healthcare IT sector.
In conclusion, the healthcare IT sector is on the cusp of a transformative period, with technology playing a pivotal role in improving patient outcomes, clinical efficiencies, and overall healthcare delivery.
