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Health care IT spend up sharply

iHealthbeat (reg rqd) put me onto this Information week article which says that health care organizations report that their spending on IT has gone from 2.7% of revenues to 3.3% in the past year. That’s a pretty big jump of over 20%.  Several of the interviewees in the article say their spending has gone up by more than 30%.  This includes some huge IDNs like Caregroups in Boston, and Sutter in California.  Although they’re not quoted in the article, a similar huge effort is underway at Kaiser. For many years it’s been trotted out by consultants like me that healthcare only spends 1-2% of its revenues on IT whereas financial service companies spend 5-10%.  So the question becomes, is this jump just brought upon by fear of HIPAA or is there a real transformation going on?

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