Report: Huge Growth Potential for Financial Modeling Applications in Hospitals | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Report: Huge Growth Potential for Financial Modeling Applications in Hospitals

April 15, 2014
by Gabriel Perna
| Reprints

 

Financial modeling, bed management, and enterprise resource planning (ERP) have the highest potential for growth in terms of IT applications supporting the business of a hospital, says a new report from HIMSS Analytics.
 
The analytics arm of the Chicago-based Healthcare Information and Management Systems Society (HIMSS) looked at 26 specific operational applications being used in hospitals and determined the potential sales growth or decline of each. The research organization used information its database as well as the Dorenfest Integrated Healthcare Delivery System+ (IHDS+) Database to profile the IT application categories. Of the 26 applications, bed management, ERP, and financial modeling had the highest growth potential. 
 
“The first-time sales outlook for these three operational applications is grounded in the industry’s ongoing efforts to create a cost-efficient and clinically effective environment,” Lorren Pettit, vice president of market research for HIMSS Analytics, said in a statement. “The fact that the three applications represent varied aspects of a hospital’s operations suggests providers are looking for efficiencies in a multiplicity of ways.”
 
The report broke the categories into these categories:
 
·         Business Intelligence
·         Financial Decision Support
·         General Financials
·         Human Resources
·         Revenue Cycle Management
·         Supply Chain Management
 
It determined which applications were saturated (75 percent of U.S. hospitals), which were mature (60 percent of U.S. hospitals), and which were maturing (less than 50 percent of U.S. hospitals). Naturally, bed management, ERP, and financial modeling were in the latter category. Those three applications are projected to have an acceleration or one percent or more in their growth trajectory. Financial modeling is projected to have the highest growth opportunity of them all at 12.2 percent. Patient scheduling has the lowest growth potential at negative 5.5 percent, according to HIMSS Analytics. 
 
There are similar opportunities for financial data warehousing, contract management, ADT/registration, and medical necessity checking content applications. However, only the ERP, bed management, and financial modeling application markets have yet to mature. According to HIMSS Analytics, this low market penetration suggests that opportunities for vendors in this area are very positive. 
 
 

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

KLAS Research: Small Hospitals’ Buying Decisions Impacting EMR Market Share

A new KLAS Research report tracks shifts in electronic medical record (EMR) vendor market share among acute care hospitals, and finds that smaller hospitals are seeking technology solutions that meet their needs and limited budgets, and these contracts are making a mark on the EMR market.

Survey: Majority of Providers Predict Success for New Generic Drug Company, Project Rx

Back in January, four health systems, in consultation with the VA, announced a collaboration to develop a new, not-for-profit generic drug company. A survey has found that 90 percent of providers say they would become customers of the new venture.

Personalized Medicine Awareness Low Among U.S. Adults, Survey Finds

Genetics and personalized medicine are not top of mind for the general public in the U.S., according to a recent survey from GenomeWeb and the Personalized Medicine Coalition.

Industry Organizations Praise Senate Passage of VA Mission Act

The U.S. Senate on Wednesday passed, by a vote of 92-5, a major Veterans Affairs (VA) reform bill that includes health IT-related provisions to improve health data exchange between VA healthcare providers and community care providers.

NIH Issues Funding Announcement for All of Us Genomic Research Program

The National Institutes of Health’s (NIH) “All of Us” Research Program has issued a funding announcement for genome centers to generate genotype and whole genome sequence data from participants’ biosamples.

MGMA: Physician Compensation Data Illustrates Nationwide PCP Shortage

Primary care physicians’ compensation rose by more than 10 percent over the past five years, representing an increase which is nearly double that of specialty physicians’ compensation over the same period, according to the Medical Group Management Association (MGMA).