By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Health Reform and the Re-Emergence of IT Outsourcing Services
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > eHealth > Health Reform and the Re-Emergence of IT Outsourcing Services
eHealth

Health Reform and the Re-Emergence of IT Outsourcing Services

Chris Hoffmann
Chris Hoffmann
Share
4 Min Read
SHARE

Changes in healthcare are having massive ramifications on healthcare IT, including work related to the updates of  ICD-9 to ICD-10 and HIPAA 4010 to 5010 data sets and a range of other initiatives.  It’s somewhat reminiscent of the IT staffing shortages in the late 90’s as global firms put resources behind Y2K readiness and currency valuations changes related to the Euro conversion.  IT services firms were in high demand for their ability to augment IT departments with supplemental or project based talent.

Changes in healthcare are having massive ramifications on healthcare IT, including work related to the updates of  ICD-9 to ICD-10 and HIPAA 4010 to 5010 data sets and a range of other initiatives.  It’s somewhat reminiscent of the IT staffing shortages in the late 90’s as global firms put resources behind Y2K readiness and currency valuations changes related to the Euro conversion.  IT services firms were in high demand for their ability to augment IT departments with supplemental or project based talent.

Today in healthcare, we’re seeing similar demands for temporary staffing and project management expertise in IT, and the ripple effect has spurred meaningful sector consolidation.   In the last 13 months, eight healthcare IT services companies have been acquired, with SAIC snapping up two:

More Read

Digital Decision Maker
Internet Marketing and Healthcare’s Digital Decision Makers
Electronic Medical Records: From Clinical Decision Support to Precision Medicine
Infographic:Healthcare’s Data Conundrum
The New Eye Chart Isn’t a Chart: It’s a Virtual Treasure Hunt
Delivering Powerful SEO in Healthcare

What is behind this M&A activity?

  • Meaningful Use – Hospitals need help deploying the technology and spending the subsidies related to Meaningful Use of electronic health records (EHR) solutions as called out in the HITECH act.
  • Regulatory Compliance Initiatives – As noted above, the migration to ICD-10 and HIPAA 5010 impacts a range of clinical, financial, and HIM software systems and workflows.
  • Increasing Demand for Interoperability & Analytics – Awash in new information and data, predictive analytics and business intelligence capabilities are  keys for identifying gaps in quality and cost.
  • New Emerging Models of Accountable Care – Risk parameters related to new care delivery models require advanced clinical data exchange/interoperability, data/analytics, and reporting capabilities.
  • Tapping into Big Data – Telemedicine, sensors, monitors, and devices are representing new data sources for healthcare payers and providers – a point articulated in our recent blog on Big Data. 

These macro factors are forcing healthcare organizations to make substantial investments in technology. The need to maximize the value of these technology investments has created increasing and sustained demand for skilled healthcare IT professionals that can provide project management, implementation, training, support, optimization, and integration and reporting services. This demand is illustrated in the fact that the healthcare IT services market is expected to grow at a 28% CAGR from 2010 to 2014, which outpaces the projected growth of the healthcare IT market:

 

Source: RCNOS

Our view is that consolidation will continue as healthcare IT demand persists for the next decade, and large outsourcing services firms and private equity groups look for ways to get in on this growth, and become even more relevant in healthcare.

Let us know what you think.

TAGGED:HIT
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

dental care
Importance of Good Dental Care for Health and Confidence
Dental health Specialties
October 2, 2025
AI in Healthcare
AI in Healthcare: Technology is Transforming the Global Landscape
Global Healthcare Policy & Law Technology
October 1, 2025
Choosing the Right Swimwear for Health and Safety
News
September 30, 2025
sports concussions
Concussion In Sports: How Common They Are And What You Need To Know
Infographics
September 28, 2025

You Might also Like

mHealth Summit Conference 2011: Thoughts and Takeaways

December 7, 2011

Social Media, Smartphones and Sandy

November 9, 2012

Book Review: Social Media in HealthCare by Christina Thielst

January 27, 2012

Adrenal Pathology Reporting: How to Prevent Errors with Pathology Reporting Software

September 29, 2014
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?