TORONTO, Dec. 1, 2010 /PRNewswire/ -- According to Millennium Research Group (MRG), the global authority on medical technology market intelligence, the emergency department information system market was worth $110 million in 2010 and will grow by over 30% in 2011 due to the American Recovery and Reinvestment Act (ARRA). Funding from this program will benefit the emergency department information systems the most in hospitals as facilities attempt to meet meaningful use requirements.
To help stimulate the economy, the US government initiated the ARRA in 2009. As part of the act, President Obama incorporated the HITECH Act, which included funding estimated at over $40 billion for electronic health record adoption to help facilities and physicians improve the quality of health care delivery. By providing incentive funding, facilities and physicians that normally would not be able to afford or be inclined to install an electronic health record would now have the means and motive of adopting one—those that do not will be penalized beginning in 2015 with reduced Medicare reimbursements.
"The emergency department information systems market for small and medium hospitals will see the most growth through 2015, with revenues expanding at compound annual growth rates of approximately 9% and 19%, respectively," says Michelle Li, Senior Analyst at MRG. "This is because many large hospitals have already adopted an electronic department information system. Larger facilities have always had a greater need for automation and more capital for purchasing these systems, so this market is fairly mature. The ARRA incentive funding will, however, encourage greater adoption in the largely underpenetrated small and medium hospital segments. Adoption of emergency department information systems by critical access hospitals (CAH), the majority of which are smaller facilities, will also fuel growth in these segments because CAHs have historically been underfunded and have fewer IT resources. Unit sales and revenues will therefore grow at a faster pace in these facilities compared to large hospitals."
MRG's US Markets for High-Acuity Information Systems 2011 report provides critical insight into trends that will fuel and limit market growth for high-acuity information systems in the US, with coverage of emergency department, critical care, and perioperative information systems. The report includes a breakdown of unit volumes, average selling prices, market values, installed base, and market shares in each market segment.
About Millennium Research Group
Millennium Research Group (www.MRG.net), a Decision Resources, Inc. company (www.DecisionResourcesInc.com), is the global authority on medical technology market intelligence and the leading provider of strategic information to the healthcare sector. The company provides specialized industry expertise through multiclient market research, ongoing Marketrack™ projects, customer behavior tracking, facility-level procedure forecasting, and customized solutions.
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SOURCE Millennium Research Group