Healthcare insiders know what the general public doesn't seem to grasp: There's more true reform in the $27 billion EMR subsidy program authorized by the 2009 American Recovery and Reinvestment Act than in the so-called "healthcare reform" legislation passed this year that mostly throws more money down the same volume-based fee-for-service rat hole.

Among those in the know are savvy venture capitalists--you know, people who perform a whole lot more due diligence than Big Media or saber-rattling politicians. As the Wall Street Journal--yes, a prominent member of Big Media--reports on its "Private Equity Beat" blog, private investment in health IT continues at a strong pace. Of note, privately held revenue-cycle management service provider Emdeon in October bought healthcare reimbursement specialist Chamberlin Edmonds & Associates for $260 million.

The stability provided by private investors may be a selling point for a lot of potential customers. "We look for companies that are actually going to be around when you're done implementing the system," says Dr. Bruce Darrow, who is leading the implementation of an Epic Systems EMR at Mount Sinai Medical Center in New York.

Still, buying health IT companies can be a risky investment because the market continues to be both highly fragmented and rapidly consolidating. But the fact of the matter is, the federal government is betting billions of taxpayer dollars that health IT will help improve the quality of care and provide one means of taming healthcare costs.

For more:
- take a look at this Wall Street Journal blog post

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