The electronic prescribing systems market is estimated to grow at a compound annual growth rate (CAGR) of 26 percent from 2012 to 2017, at which point it is expected to reach $794 million, according to a new study by research firm MarketsandMarkets.
The Health Information Technology for Economic and Clinical Health (HITECH) Act designates e-prescribing as an essential requirement for meaningful use under the electronic health record (EHR) incentive programs, thus driving the adoption of electronic prescribing systems. Costs can be cut down with the use of eRx systems as these help to improve quality and efficiency and show promise in reducing costs by actively promoting appropriate drug usage; providing information to providers and dispensers about formulary-based drug coverage, including formulary alternatives and co-pay information; and speeding up the process of renewing medications.
Most healthcare systems, of developing countries do not have an integrated and well connected network. These affect the ability to effectively use important features that integrated eRX systems offer thus restraining the growth of this market.
The expenditure on e-health is slated to increase as a percentage of national health budgets in this decade. As the governments look to encourage physicians and pharmacies to adopt the technology, the e-prescribing market is likely grow to $794 million by 2017 globally, according to the report.
Spread of awareness and realization of the growing need to switch to e-health will boost this technology. Regional inter connectivity to ensure prompt transfer of patient information even as the patient travels to another country has become the need of the hour. Hence, besides the obvious advantages of reducing medication errors and saving upon time and money, e-prescription is building path for a global healthcare structure, the report said.
The market is driven by a few established companies and many small companies operating in this industry which are striving to gain maximum market share. The predominant strategy followed by all players of this market is launching of new products by means of modifying the product as per changes in technology and need of the end users which results in development of either new innovative product or modification of the existing product. Since the healthcare industry has long been apprehensive towards adopting IT and technology, vendors aim to increase awareness and offer easy-to-use solutions to the healthcare providers.