A Deltek market report predicts the federal health information technology market to reach $6.4 billion in spending by 2021 at a compound annual growth rate of 1.4 percent due to investments aimed to analyze, digitize, secure and share health information.
Deltek said Wednesday federal agencies such as the Defense Health Agency and the Department of Veterans Affairs will continue to invest in health IT products and services in efforts to boost health outcomes and mitigate fraud, waste and abuse.
“Although future health initiatives remain largely uncertain under the new presidency, the need to update or replace [electronic health records], establish interoperability, spur medical innovation and improve outcomes will drive demand for contractor solutions and support,” said Angie Petty, a senior principal research analyst at Deltek.
Deniece Peterson, Deltek director of research, added vendors will secure positioning in the federal health IT market if they offer health IT technologies that work to utilize data to help agencies build on healthcare effectiveness and control costs.
Other aspects that will impact the market include data centricity in federal health IT, the priorities of the new administration, policies and legislation for funding and growth in the provider market segment.