Report: Health IT Reducing Medical Spending Growth Rate | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Report: Health IT is Reducing the Medical Spending Growth Rate

June 12, 2015
by Gabriel Perna
| Reprints
Healthcare information technologies are leading to a drop in medical inflation, according to a report from PricewaterhouseCoopers' (PwC) Health Research Institute.
 
The Health Research Institute projected that U.S. medical inflation will dip to 6.5 percent in 2016, which would cap a ten-year trend of slowing employer medical cost-trend growth. Of the three main reasons why the medical growth rate has slowed, the adoption of virtual care technologies, such as telemedicine and remote monitoring systems, was listed as one. They said these technologies are more convenient and efficient than traditional care. 
 
Researchers also said the growth of health advisers, who help steer consumers to more efficient care and the Affordable Care Act's "Cadillac tax" on high-priced plans are the other two reasons for the slowed medical growth rate in 2016. 
 
However, despite this, healthcare cost inflation will still outpace the economy. One of the reasons is because of the growth of cyber-security breaches in the industry, forcing healthcare companies and organizations to step up protection measures.
 
 

Get the latest information on Health IT and attend other valuable sessions at this two-day Summit providing healthcare leaders with educational content, insightful debate and dialogue on the future of healthcare and technology.

Learn More

Topics

News

Boston Children's Accelerates Data-Driven Approach to Clinical Research

In an effort to bring a more data-driven approach to clinical research, Boston Children’s Hospital has joined the TriNetX global health research network.

Paper Records, Films Most Common Type of Healthcare Data Breach, Study Finds

Despite the high level of hospital adoption of electronic health records and federal incentives to do so, paper and films were the most frequent location of breached data in hospitals, according to a recent study.

AHA Appoints Senior Advisor for Cybersecurity and Risk

The American Hospital Association (AHA) has announced that John Riggi has joined the association as senior advisor for cybersecurity and risk.

Report: Healthcare Accounted for 45% of All Ransomware Attacks in 2017

Healthcare fell victim to more ransomware attacks than any other industry in 2017, according to a new report from global cybersecurity insurance company Beazley.

Study: Use of EHRs Does Not Reduce Administrative Costs

A recent study by Duke University and Harvard Business School researchers found that costs for processing a single bill ranged from $20 for a primary care visit to $215 for an inpatient surgical procedure, or up to 25 percent of revenue.

Kibbe to Step Down as CEO of DirectTrust

David Kibbe, M.D., M.B.A., announced he would step down as president and CEO of DirectTrust at the end of the year.