Information Technology Revolutionizes Healthcare: A New Era for Providers

Healthcare providers are shifting their focus from traditional medical equipment and facilities to advanced information technologies, driven by the growth of managed care and the need for cost and patient outcome data. This trend is evident in the health care industry's increase in spending on automated information systems, which rose 13% from 1993 to 1994 and is expected to grow 53% by 1997.

Key Takeaways:

• The healthcare industry spent $8.5 billion on automated information systems in 1994, about 13% more than in 1993.
• The market for physician office management information systems is growing at a rate of 10% a year and is expected to reach $7 billion when it matures.
• Information requirements are exploding, with 51 of 66 respondents in a recent survey of healthcare executives naming information technology as their top priority for the next three years.
• The creation of medical knowledge banks for community-based practitioners, funded by a $21 million grant, aims to provide 24-hour access to the latest medical information and speed up the dissemination of medical breakthroughs.
• Telemedicine is becoming more prominent, with a NeuroLink network developed by Allegheny General allowing physicians to send MRI and CT scans over standard phone lines for immediate consultation.
• A Berdy Medical System grant recipient aims to develop computers that can understand and convert to text continuous, conversational speech, addressing a long-standing barrier to computerized patient records.

Statistics:

• $8.5 billion: The amount spent by the healthcare industry on automated information systems in 1994.
• 13%: The increase in spending on automated information systems from 1993 to 1994.
• 53%: The expected growth in spending on automated information systems by 1997.
• 10%: The annual growth rate of the market for physician office management information systems.
• $1 billion: The market for physician office management information systems in 1994.
• $7 billion: The expected market for physician office management information systems when it matures.
• 15.5%: The compound annual growth rate of the market for medical devices between 1975 and 1980.
• 9.6%: The compound annual growth rate of the market for medical devices between 1990 and 1993.
• $40 billion: The market for medical devices in 1994.
• $495,000: The estimated savings in reduced transportation costs, tests, and hospital stays as a result of the NeuroLink network.

Sources:

• Andersen Consulting survey
• Health Information Manufacturer's Assn. report
• Sheldon I. Dorenfest & Associates
• Jewson Enterprises
• 3M Health Information Systems
• Berdy Medical System
• Carnegie Mellon's Information Technology Center
• Allegheny General Hospital's Singer Research Institute
• NeuroLink network