The North American health IT market is forecast to grow at a CAGR of 7.4% to reach $31.3 billion by 2017 from $21.9 billion in 2012 due to the increasing demand for clinical information technology, and administrative solutions and services according to recent report by Markets and Markets.
Canada is expected to register the highest CAGR of 7.7% (2012 to 2017) respectively in the overall North America healthcare information technology market, followed by U.S (7.2%). However, U.S. accounted for the highest share – 72.6% – of the North America Healthcare IT market and is expected to reach $22.6 billion in by 2017 as compared to $15.9 billion in 2012. Public funded health structure, prominent role played by Canada Health Infoway, growing pressure to cut healthcare costs, and rise in incidences of chronic diseases are some of the factors likely to propel the Canadian market.
EHR Adoption is one of the major factors driving the growth of the health information technology market driven by Meaningful Use incentives. Other contributing factors cited in the report include:
- rise in pressure to cut healthcare costs
- rise in aging population
- growing demand for CPOE adoption in order to reduce medication errors
- rise in incidences of chronic disorders.
Barriers to Growth
The HIT industry has faced several issues and backlash from several industry leaders related to the high cost of EHR implementations with a low ROI. The report cites high cost of healthcare IT solutions, high maintenance and service costs, interoperability issues, shortage of healthcare IT professionals, and security breaches are key barriers to the HIT growth over the next few years.
The reported highlighted the following key players in the market:
- Allscripts Healthcare Solutions, Inc.
- Athenahealth, Inc.
- Carestream Health, Inc.
- Cerner Corporation
- Epic Systems
- GE Healthcare
- McKesson Corporation
- Medical Information System, Inc.
- NextGen Healthcare Information System, LLC
- Novarad Corporation
- Philips Healthcare
- Siemens Healthcare
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