HIS market to double in U.S. by 2012

Twitter icon
Facebook icon
LinkedIn icon
e-mail icon
Google icon

Hospital information system (HIS) technology adoption rates are increasing in the United States due to the rising need to reduce errors and improve the delivery of healthcare services, according to San Jose, Calif.-based market research firm Frost & Sullivan. Revenues in this market totaled $10.34 billion in 2005, and are likely to reach $21 billion in 2012, the company said.

Frost & Sullivan research analyst N.S. Rajaraman noted that increasing demand for integrated versions of HIS and customized solutions for individual departments such as clinical laboratory, radiology, pharmacy and high-acuity care areas of the hospital is likely to further market growth.

The company said that the capability of modern systems to provide seamless integration and perfect compatibility is presenting several growth opportunities. Technological improvements are likely to provide complete backward integration, which is likely to improve customization.

The report, “U.S. Hospital Information Systems (HIS) Markets,” observed that standalone systems that work well in small hospitals and restricted departments are often incapable of scaling up to a larger set up. Hence, they become redundant, and have to be either replaced or abandoned.

Rajaraman said that the industry needs to evolve a standard that would provide a uniform set of services and have the same installing processes, which could be achieved through a consensual approach or through acquisitions and mergers.

The firm stated that installation of a hospital-wide enterprise system can require about 36 months, adding to the cost of implementation significantly. As such, it believes that it is essential to hire experts to install these systems.