2018 Healthcare IT Demand Survey: Data and analytics to drive healthcare IT spend in 2018
Findings from the 2nd annual Healthcare IT Demand Survey by Damo Consulting, a healthcare growth advisory firm, indicate that a lack of enterprise readiness for new technologies is the biggest headwind for growth. The rise of non-traditional players Apple and Amazon is the most important factor impacting the competitive environment in 2018.
However, survey respondents indicated that the demand environment for healthcare IT remains strong. The transition to value-based care will continue unabated and is expected to be the main driver for technology spend in 2018, with data and analytics being the top focus area. With the entire healthcare sector in a state of flux, structural changes in the industry, including M&A and consolidation among technology providers, are seen as important factors that will impact the competitive environment in 2018.
“When we did our inaugural survey last year, the Presidential election happened right in the middle of the survey. We saw an interesting shift in the responses, with a large majority of respondents citing the results of the election as a huge risk for the healthcare markets.” says Paddy Padmanabhan, CEO Damo Consulting. “Those concerns have faded since then, and have been replaced by the bigger concern around the likely disruptions to the market from the rise of non-traditional players such as Apple and Amazon”.
Results included:
Which of the following are the biggest drivers of technology spending in healthcare in 2018?
- Value-based care initiatives (60.5%) tied closely with patient engagement and care management initiatives (57.9%) as the major drivers of technology spending in 2018
- While IT and data security remain big concerns for healthcare, a significant portion (39%) of the respondents considered cybersecurity and ransomware to also be drivers for technology spend
Which technology areas will see increased spend in 2018?
- Data and analytics was by far the single biggest area identified by respondents (76.3%) for increased technology spend in 2018
- Nearly half (47.4%) of respondents believe that AI and cognitive will witness an increase in spend in 2018, followed by digital health (44.7%)
Damo Consulting’s report, 2018 Healthcare IT Demand Survey, analyzes how the demand environment for healthcare IT is changing and will impact the industry in the coming year, the challenges for healthcare organizations, the perceived impact of macro-level changes, and more.
