Upsurge in per capita healthcare expenditure and the increasing demand for long-term care are fuelling strong growth in the U.S. healthcare services vertical due to the aging baby boomer population. As a result, information technology (IT) and telecom can expect a huge increase in their revenues through provision of hardware, software, communication technologies, and consulting or professional services to the healthcare services vertical.
New analysis from Frost & Sullivan (telecom.frost.com), IT and Telecom Trends in U.S. Healthcare Services Vertical, reveals that revenue totaled $9.26 billion in 2004 and can reach $11.95 billion in 2011.
If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants an overview of the latest analysis of the IT and Telecom Trends in U.S. Healthcare Services Vertical, then send an e-mail to Mireya Castilla, Corporate Communications, at mireya.castilla[.]frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. Upon receipt of the above information, an overview will be emailed to you.
“Regulatory oversight in the healthcare services vertical is growing, especially in the form of the Health Insurance Portability and Accountability Act (HIPAA), which requires firms to implement specific safeguards in the use of patient medical records,” writes Frost & Sullivan Industry Analyst Imran Khan. “This is further stimulating new technology investment by small, medium, and large healthcare firms.”
Due to the rising cost of malpractice insurance, healthcare service providers are compelled to focus on improving patient safety and reducing medication errors using technology. This approach bolsters the IT and telecom markets.
However, operating costs for the healthcare services are on the rise. Higher regulatory compliance-related expenditures, greater employee hiring, training, and retention expenses are culprits along with the rise in medical malpractice insurance costs.
Budgetary shortfalls at the federal and state government levels have forced a rise in self-payment for medical services. This leads to rising volumes of uncollectible medical bills accounting for 8 to 12 percent of total hospital revenues. Both of the above factors have lowered profits for the healthcare services vertical, thereby reducing the flow of money to other activities including communications and IT infrastructure.
“Technology providers must be aware of the relatively slow adoption of various technologies among healthcare services,” notes Khan. ”This will lead to longer sales cycles and require multiple contacts with potential buyers, resulting in higher opportunity costs for the technology companies.”
In addition, training sessions for healthcare staff (IT personnel and technology end users), can further help technology providers overcome adoption resistance. Case studies and referrals can help in closing a sale.
Healthcare services are implementing technology that directly influence their revenues and profitability by realizing cost efficiencies and improved effectiveness of operations. For telecom carriers that are targeting the healthcare services vertical, success of their marketing strategy will depend on their ability to forge strategic channel partnerships with IT vendors. Consumer friendly strategies such as reasonable pricing, user-friendly applications, and effective customer support, in conjunction with product customization can help further the demand for IT and telecom technologies.
IT and Telecom Trends in U.S. Healthcare Services Vertical is part of the Business Telecom Services subscription. The study analyses the IT and telecom trends in U.S. healthcare services, segmenting it into ambulatory care, hospitals, nursing homes/residential care, and social assistance providers. It discusses the various trends and opportunities while providing market share analysis, forecasts, drivers, restraints, and revenues. Executive summaries and analyst interviews are available to the press.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.
IT and Telecom Trends in U.S. Healthcare Services Vertical
Corporate Communications – Europe
P: +44 (0) 20 7343 8376
F: +44 (0) 20 7730 3343
Corporate Communications – Asia Pacific
P: +603 6204 5878
F: +603 6201 7402
Keywords in this release: IT, information technology, telecom, healthcare services, U.S., ambulatory care, hospital, nursing home, residential care, social assistance providers, hardware, software, communication technologies, research, information, market, trends, technology, service, forecast, market share.