IBM offers $2B in financing for federal HIT projects

Now here's a model we expect to see more of over the next several months: Vendor financing of key infrastructure needed to meet federal IT demands. Global technology giant IBM has announced that it is making up to $2 billion available to finance technology projects related to the demands of the new stimulus package. Clever move--not only does this bind clients to IBM technology, but the federal stimulus funds make it far less likely that IBM will get stiffed.

IBM's Global Financing arm is stepping in where banks fear to tread, offering to structure flexible payment arrangements, deferred payments, lines of credit and project financing packages for clients. The idea, IBM said, is to help healthcare organizations get going on projects before government begins doling out the stimulus funding.

Federal projects planned under the American Recovery and Reinvestment Act of 2009 focus on three areas: HIT, developing a "smart" energy grid and providing more broadband access. IBM estimates that the smart grid industry alone is a $13 billion market worldwide, and that execs see it as a important opportunity for the company.

To learn more about IBM's initiative:
- read this Modern Healthcare piece (reg. req.)
- read this CNNMoney.com piece

Related Articles:
Moody's: Stimulus may not have big healthcare impact
HIMSS report: $25 billion stimulus needed to help speed EMR adoption

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