Nursing Home and Long-Term Care Information Systems Market Opportunities, Strategies, and Forecasts, 2006 to 2012

Wintergreen Research
May 1, 2006
335 Pages - SKU: WGR1270922
License type:
The third quarter of 2005 continued a trend of positive developments in the healthcare information technology marketplace. A significant development was the publication of RAND’s peer-reviewed study that indicates healthcare information technology could save the country’s healthcare system $162 billion annually through improved efficiency, disease management and reduced adverse drug events. This study provides large-scale, independent, quantified proof of the impact healthcare information technology can have.

Homecare information systems are positioned to connect business: clinical activities, billing/financial, and management decisions. Table ES-1 illustrates homecare business integration.

TABLE ES-1
HOMECARE BUSINESS INTEGRATION
  • Clinical activities
  • Billing
  • Financial
  • Care management decisions
Source: WinterGreen Research, Inc.

Return On Investment (ROI)
Home care providers are able to achieve an increase of 37% in administrative productivity after the installation. Presenting technology infrastructure improvement solutions needs to be accompanied by building a business case for solutions. If the technology does not address a business problem then the outcome results in disappointment.

Vendors seek to increase market share in individual domains. They seek to penetrate the existing client base with more functionality. Continued growth is expected in clinical domain systems for specific markets such as nursing, physician office, laboratory, pharmacy, radiology, surgery, emergency medicine and cardiology. As institutions look to restructure and reengineer these high-cost centers, IT promises more efficient operations.

Homecare front end, backend, integration, and medical information system software is targeted to non-acute health care distributors. This market has been highly fragmented. Consolidation in the market is causing significant change in the industry.

Products are differentiated in the market based upon the granularity of the offerings and the ability to meet the specific needs of the homecare providers.

The homecare market is changing. New services needed in the home include intravenous (IV) therapy, pain control, and basic needs services delivery. Delivery of new services depends on systems integration. Delivery of these services depends as well on automation of the reimbursement process. The ability of the existing homecare dealer network to deliver advanced services in the home is limited in part by an inability to bill for those services. New systems fulfill that need.

U.S. homecare information are expected to reach $2.6 billion by 2010. U.S. homecare information systems markets are expected to grow at 17% per year in 2003, with the growth rate accelerating to 25% per year on average through 2010. Market forces for growth relate to the efficiency and efficacy of homecare services delivery.

Worldwide homecare information systems markets at $285.7 million in 2005 are expected to reach $1.2 billion by 2012.

Homecare information systems, SOA, services, wireless, records systems market segment forecasts indicate strong growth for the homecare automation markets. The use of an electronic record that creates bills is a basic process efficiency aspect. Markets at $1.8 billion are expected to reach $4.8 billion by 2012.