CIOs optimistic despite slow growth in HIT spending

Though the health IT industry is gearing up for the federal health IT stimulus program that begins in October for hospitals and next January for physician practices, don't expect a big increase in health IT budgets this year. Global spending on health IT fell to $79.8 billion in 2009 from $85 billion a year earlier, according to Gartner research, and is only forecast to rebound to $82.2 billion in 2010, with much of the momentum to come from overseas. In the U.S., Gartner says growth will only be about 1.5 percent this year.

Still, many CIOs find themselves in better positions now than they were during the depths of the recession in late 2008, in part because they've already made some difficult cuts that have left them more prepared for the future. "I am so excited about this year. Our situation is definitely improving," Jamie Mooney, CIO of Norwalk (Conn.) Hospital, tells Healthcare Informatics. "Because we watched financial metrics closely last year and we delayed some projects, the hospital actually had a pretty good year fiscally despite the economy. Now we are in a much stronger position and able to do some projects."

At University Hospital in Augusta, Ga., CIO William Colbert has to compete with other departments for his share of capital investments, but he's already done the hard work of convincing hospital executives to emphasize IT. "Our overall capital budget actually looks worse for 2010 than it did for 2009, but our chief operating officer knows that because of the stimulus funding and other issues, we have to place a priority on several IT projects," Colbert says. University Hospital is installing physician documentation now and has plans to purchase revenue-cycle management technology from McKesson.

For more on the 2010 outlook for HIT spending:
- click through to this Healthcare Informatics story

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