New spending on the core systems which manage Medicaid programs--including quality, e-prescribing and health data management--should climb substantially within the next few years, driving much of U.S. health IT spending, according to a new study. Investment in Medicaid Management Information Systems (MMIS) should be a key component in pushing health IT spending from $6.9 billion in 2007 to 410.8 billion in 2007. The study, by government market research firm Input, predicts that spending on MMIS systems alone will hit $4.1 billion by 2012.

While MMIS systems are used for more than health IT, MMIS capabilities should be increasingly used to address quality and health outcomes issues as state and local health reforms roll out, the analyst firm said. CMS is pushing states in that direction with $150 million in "Medicaid Transformation Grants," which encourage states to add e-prescribing, health IT and quality improvement features to their systems.

To learn more about this study:
- read this Government Health IT piece [1]

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Bush push may also advance healthcare IT. Report [4]