- Electronic Health Record (EHR) Investments – Growth in federal health IT contractor addressable spending will be supported by investments in EHR and solutions to improve population health and combat disease.
- New Administration Priorities – Future health initiatives remain largely uncertain under the new presidency. The Trump administration has clearly stated its intent to repeal and replace or modify the Affordable Care Act, which would impact funding for agencies involved in health care delivery and payment. However, Defense and VA spending may be insulated or even increased as part of the new administration's stated commitment to support the nation's military and veterans.
- Data-Centricity – Federal health IT areas focus largely on data: data standardization, data integrity, data exchange, data analytics, data storage and interoperability. Other priorities include infrastructure modernization, legacy system modernization, cloud adoption, telehealth and mobile applications.
- Policy and Legislation – Legislation such as the HITECH Act, MACRA, and the 21st Century Cures Act, promote population health and the use of health IT on a nationwide level, but provide relatively limited funds to agencies for the implementation of health IT. Opportunities will largely come from agencies balancing existing funds.
- Provider Market Dominates – Deltek expects the provider market segment, consisting primarily of VA and DoD, to show the most year-over-year growth due to EHR initiatives, as well as VA efforts to implement its digital health platform.
DELTEK ANALYST QUOTES
"Although future health initiatives remain largely uncertain under the new presidency, the need to update or replace EHRs, establish interoperability, spur medical innovation, and improve outcomes will drive demand for contractor solutions and support."
– Angie Petty, Senior Principal Research Analyst, Deltek
"Given the focus on reducing health care costs, contractors with solutions that help agencies leverage its vast volumes of data to increase health care effectiveness and root out waste will be well positioned in this market."
– Deniece Peterson, Director of Research, Deltek
According to #Deltek report, fed health IT spending to grow from $6.0B in FY16 to $6.4B in FY21 http://ow.ly/Q5Yl308ujTU
#Deltek report: DoD and VA investments to help drive fed health IT spending over the next five years http://ow.ly/Q5Yl308ujTU
Fed health IT spending to remain strong under new admin. w/ need to reduce fed health care expenditures. #Deltek http://ow.ly/Q5Yl308ujTU
For more information on GovWin IQ and this report, visit the "Federal Information Security Market, 2016-2021" page on Deltek.com/GovWin or download the free summary here. The report is free to subscribers of GovWin's Federal Market Analysis program.
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