Healthcare Industry in North America - IT Market Assessment by InfinitiResearch

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Healthcare Industry in North America has risen rapidly since 2000 and continues to rise faster than the economy as a whole and worker’s earnings. Healthcare expenditure in the US has been the highest in the past decade when compared to other countries and is expected to outpace the Gross Domestic Product growth over the next 10 years.

As increase in health insurance premium continues to outpace the growth in workers’ wages, workers are spending a larger percentage of their wages on health insurance. Government is also pushing more of the costs onto citizens through higher statutory payments or higher direct contributions under the universal health coverage plan.

The report forecasts the IT spending of the Healthcare Industry in North America over the period 2007-2010. It is meant for IT vendors and intends to help them identify selling opportunities in the Healthcare Industry in North America. The report identifies key business issues being faced by the Healthcare Industry in North America.

Further, the identified sales drivers can be used to penetrate these accounts or increase current share of the customer's wallet.

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									Healthcare Industry in North America
           IT Market Assessment
                                                        H eal t h car e In dus tr y i n N or th A mer ic a – IT Mar k et
                                                                                     As s es s m en t




                                           Table of Contents

1.0 Health care Industry in North America ............................................... 2
  1.1 Market Size and Forecast ............................................................ 2
  1.2 Market Tren ds .......................................................................... 3
2.0 Growth Drivers & Restraints ........................................................... 4
  2.1 Growth Drivers ......................................................................... 4
  2.2 Growth Restraints ..................................................................... 5
3.0 IT Spen ding - Health care Indu stry in North Ameri ca ............................ 6
  3.1 IT Spen din g & Forecast .............................................................. 6
  3.2 IT Sales Drivers ........................................................................ 7
4.0 Regulati on s Affecting IT Spending ................................................... 9
Oth er Reports in This Seri es .............................................................. 11



                                              List of Exhibits

Exhibit 1: Healthcare Industry in North America Market Size & Forecast 2007-2013 (in
     trillion USD) ........................................................................................................ 2

Exhibit 2: IT Spending & Forecast 2007-2013 ( in billion USD) ......................................... 6




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                                            H eal t h car e In dus tr y i n N or th A mer ic a – IT Mar k et
                                                                      As s es s m en t




1.0 Healthcare Industry in North America

1.1 Market Size and Forecast
Healthcare expenditure in the US has risen rapidly since 2000 and continues to rise faster
than the economy as a whole and worker’s earnings. In 2007, the US healthcare
expenditure was estimated to be $2.26 trillion accounting for 16.2% of the Gross Domestic
Product, while healthcare spending in Canada reached $160.1 billion, putting the total
healthcare expenditure in North America at $2.4 trillion.

Healthcare expenditure in the US has been the highest in the past decade when compared
to other countries and is expected to outpace the Gross Domestic Product growth over the
next 10 years. The US healthcare spending is expected to rise from $2.26 trillion in 2007 to
$3.4 trillion in 2013, at a CAGR of 6.9%, accounting for 19.6% of Gross Domestic Product.
It is projected that healthcare expenditure in Canada will reach $234 billion by 2013 at a
CAGR of 6.5% totaling the healthcare expenditure of North America to reach $3.6 trillion, at
a CAGR of 6.9% in 2013. Exhibit 1 depicts the market forecast for the North American
healthcare industry.

Exhibit 1: Healthcare Industry in North America Market Size & Forecast 2007-2013 (in trillion
USD)

   4.0
                                                                                             3.6
                                                                               3.4
   3.5                                                          3.2
                                                  3.0
   3.0                               2.8
                         2.6
             2.4
   2.5

   2.0

   1.5

   1.0

   0.5

   -
            2007        2008         2009        2010          2011           2012          2013



                                                                              Source: TechNavio Analysis




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                                         H eal t h car e In dus tr y i n N or th A mer ic a – IT Mar k et
                                                                 As s es s m en t




1.2 Market Trends
   Increasing out-of-pocket spending by consumers: Consumers’ out-of-pocket
     costs include health insurance premiums, co-pays and deductibles. As increase in
     health insurance premium continues to outpace the growth in workers’ wages,
     workers are spending a larger percentage of their wages on health insurance.
     Government is also pushing more of the costs onto citizens through higher statutory
     payments or higher direct contributions under the universal health coverage plan.
     Further, the number of seniors covered by Medicare will continue to grow at an
     exceedingly high rate, from 42.5 million people in 2006 to 70.2 million in 2025.

   Rise of Consumerism: Consumers have assumed much greater financial oversight
     and responsibility for their healthcare. Customers are seeking the Internet to gain
     knowledge on the options they have and to interact with their physicians and
     possibly get a second opinion. Health infomediaries, who will help patients identify
     the information required to make sound choices, interpret medical information,
     choose between care alternatives and channels, and interact with the providers they
     choose, will become fixtures in the healthcare landscape for both the well and the
     chronically ill.

   Pay for Performance: Pay for performance (P4P) is an emerging trend among
     health insurers and other stakeholders wherein rewards for physicians, hospitals,
     medical groups and other healthcare providers are based on fulfillment of pre-
     established targets and quality of services they deliver. Pilot studies of this initiative
     have resulted in increased efficiency and reduced costs.

   Tele-Heath: As the US healthcare industry moves away from a grant-funded model,
     to a return on investment (ROI) real business model, providers 
								
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