Health IT spending to hit $12B by 2011

Driven by major program integration and health IT initiatives, state and local government spending on health care and welfare IT is sharply on the rise.

State and local governments are expected to increase spending on health care and welfare IT from $7.6 billion in fiscal 2006 to $12.2 billion by fiscal 2011, according to a new report from market research firm Input Inc., Reston, Va.

One key indicator of the anticipated uptick in spending came recently when the U.S. House of Representatives passed the Health Information Technology Promotion Act of 2006, Input said. The law is meant to solidify the position of the National Coordinator Office for Health IT, which is charged with developing and implementing a national interoperable health IT infrastructure.

The Certification Commission for Healthcare IT also announced that it has certified the first set of 20 e-health records products for use by health care providers.

Additionally, the Centers for Medicare and Medicaid Services announced $150 million in state grants aimed at improving patient care through IT for 2007 and 2008, Input said.

State and local government spending also will be driven by the pressing need for program efficiencies and fraud and abuse reduction, Input said.

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