Study: State and local government spending on health IT to climb

State and local governments are expecting to see a huge uptick in health IT spending over the next five years, driven largely by the influx of money coming in from federal stimulus funding.

According to market research firm Input, states and locals will boost health IT spending from $7.6 billion in 2009 to $9.6 billion in 2014, a compound annual growth rate of 4.6 percent. This includes increased spending on EMRs, from $850 million in 2009 to $1.85 billion within five years.

Other products state and local agencies are expected to buy include decision support, clinical data, pharmacy, patient tracking and disease management software, according to the Input report.

In addition to stimulus funds, state and local health IT funding will be bolstered by Medicaid supplemental payments and annual budgets. Organizations expected to step up spending include hospitals, clinics, mental health organizations, RHIOs and Medicaid.

To learn more about this research:
- read this Federal Computer Week piece

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