Technology Opportunities in the North American Healthcare Market

TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 3
Introduction 3
Market context 3
Key industry trends impacting healthcare in North America 3
Key technology trends impacting healthcare in North America 4
The future decoded 4
Competitive dynamics 6
CHAPTER 2 INTRODUCTION 15
What is this report about? 15
Who is the target reader? 16
How to use this report 16
CHAPTER 3 MARKET CONTEXT 17
Introduction 17
Key findings 18
Defining the North American healthcare provider and payer industry 19
Key industry trends impacting healthcare in North America 19
Greater role of governments in setting national healthcare IT agendas 20
Increasing role of individuals as consumers in the selection and financing of their healthcare 22
Continuing focus on not only quality but also the efficacy of quality 23
Continuing downward cost pressures 24
Key technology trends impacting healthcare in North America 25
Working toward the electronic medical records (EMR) and electronic health records (EHR) vision 25
Addressing underlying data integration and standardization challenges 29
Portal technologies to facilitate relationships between and among stakeholders 31
The changing view of patients as consumers drives investment in customer-facing technologies 34
Telehealth technologies will continue to address the issues of access, prevention, and chronic disease management 36
Enterprise resource planning (ERP) systems driving the back office 38
Digital imaging moves beyond radiology and Picture Archiving and Communication Systems (PACS) 39
Structure and expenditures of North American healthcare systems 40
North America in the international context 40
Canada 45
United States 50
CHAPTER 4 THE FUTURE DECODED 56
Introduction 56
Key findings 57
North American healthcare provider technology spending 58
US healthcare providers 59
US provider IT spending by technology 61
US provider IT spending by end user 70
US healthcare payers 75
US payer IT spending by technology 77
Canada healthcare providers 84
CHAPTER 5 COMPETITIVE DYNAMICS 87
IT services firm in the spotlight 87
Other healthcare vendor trends 88
Summary IT services firms profiles 89
Computer Sciences Corporation (CSC) 90
First Consulting Group (FCG) 91
IBM 92
Key vendors serving the North American healthcare industry 93
CHAPTER 6 APPENDIX 97
Sources cited 97
Abbreviations and acronyms 98
Research methodology 100
Datamonitor Healthcare Technology Decision maker Panels 100
Datamonitor eHealth Consumer Insight Survey 101
Datamonitor eHealth Physician Insight Survey 101
Related readings 101
SPP writing team 102
How to contact experts in your industry 103

LIST OF TABLES
Table 1: Comparison of North American and European total healthcare expenditures as a % of GDP, 2000-2003 43
Table 2: Comparison of North American and European total healthcare expenditures per capita, 2000-2003 44
Table 3: North American healthcare provider IT spending by country, 2005-2010 (millions USD) 59
Table 4: US healthcare provider total IT spending, 2005-2010 (millions USD) 60
Table 5: Mapping IT to address specific provider business challenges 62
Table 6: US healthcare provider total IT spending by technology, 2005-2010 (millions USD) 63
Table 7: US healthcare provider hardware spending by sub-segment, 2005-2010 (millions USD) 65
Table 8: US healthcare provider software spending by sub-segment, 2005-2010 (millions USD) 67
Table 9: US healthcare provider IT services spending by sub-segment, 2005-2010 (millions USD) 70
Table 10: US healthcare provider IT spending by end user segment, 2005-2010 (millions USD) 72
Table 11: US healthcare payer total IT spending, 2005-2010 (millions USD) 76
Table 12: US healthcare payer IT spending by technology, 2005-2010 (millions USD) 79
Table 13: US healthcare payer hardware spending by sub-segment, 2005-2010 (millions USD) 81
Table 14: US healthcare payer software spending by sub-segment, 2005-2010 (millions USD) 82
Table 15: US healthcare payer IT services spending by sub-segment, 2005-2010 (millions USD) 84
Table 16: Canada healthcare provider total IT spending, 2005-2010 (millions USD) 85
Table 17: Canada healthcare provider IT spending by technology, 2005-2010 (millions USD) 86
Table 18: Technology vendors in the Canada healthcare industry 95


LIST OF FIGURES
Figure 1: Top obstacles in integrating electronic medical records 27
Figure 2: Payer funding of stakeholders, past and future 32
Figure 3: Providing services to physicians via portal solutions 34
Figure 4: Consumer interest in online disease management and compliance tools 38
Figure 5: Comparison of North American and European total healthcare expenditures as a % of GDP, 2003 41
Figure 6: Comparison of North American and European total healthcare expenditures per capita, 2003 (USD) 42
Figure 7: Total healthcare spending in Canada (billions USD) 47
Figure 8: Total healthcare spending in Canada, as % of GDP 48
Figure 9: Total healthcare spending in Canada, public vs. private (inflation-adjusted spending) (billions USD) 49
Figure 10: Total healthcare spending in Canada, by type of expenditure (% proportion) 50
Figure 11: Total healthcare spending in the US (billions USD) 52
Figure 12: Total healthcare spending in the US, as % of GDP (billions USD) 53
Figure 13: Total healthcare spending in the US, public vs. private (billions USD) 54
Figure 14: Total healthcare spending in US, by type of expenditure, 2003 (billions USD) 55
Figure 15: North American healthcare provider IT spending by country, 2005 (%) 59
Figure 16: US healthcare provider total IT spending, 2005-2010 (millions USD) 60
Figure 17: US healthcare provider IT spending by technology, 2005-2010 (millions USD) 63
Figure 18: US healthcare provider hardware spending by sub-segment, 2005 (%) 65
Figure 19: US healthcare provider software spending by sub-segment, 2005 (%) 67
Figure 20: US healthcare provider IT services spending by sub-segment, 2005 (%) 69
Figure 21: US healthcare provider IT spending by end user segment, 2005-2010 (millions USD) 71
Figure 22: US healthcare payer total IT spending, 2005-2010 (millions USD) 76
Figure 23: Translating healthcare payer challenges into technology investments 78
Figure 24: US healthcare payer IT spending by technology, 2005-2010 (millions USD) 79
Figure 25: US healthcare payer hardware spending by sub-segment, 2005 (%) 80
Figure 26: US healthcare payer software spending by sub-segment, 2005 (%) 82
Figure 27: US healthcare payer IT services spending by sub-segment, 2005 (%) 83
Figure 28: Canada healthcare provider total IT spending, 2005-2010 (millions USD) 85
Figure 29: Canada healthcare provider IT spending by technology, 2005-2010 (millions USD) 86