Jane Edwards
Booz Allen Hamilton, Science Applications International Corp., Peraton and other large technology contractors are hoping to get a share of the federal health information technology market by acquiring health software and IT companies, the Washington Business Journal reported Friday.
“The size of the deals in health care in the public sector are very large and lucrative, and I think what you are seeing is the investment world coming to grips with that and wanting to contribute in their portfolio to that,” said Monty Deel, chairman and CEO of Swish Data. “The whole technology market is kind of shifting.”
Federal health agencies seeking to improve business processes are adopting cloud platforms as part of their digital transformation efforts, leading to an industry of health services and software companies looking to address the needs of federal IT officials responsible for cloud networks.
Jerry McGinn, executive director of the Center for Government Contracting at George Mason University’s School of Business, a GovCon Expert and a 2021 Wash100 Award winner, observed contractors eyeing the health IT market look to differentiate their portfolios for more government clients planning to modernize their IT infrastructure.
“I think companies are doing that to get into adjacent markets and also a bit hedging in case defense spending kind of plateaus or goes downward from where it is right now,” McGinn said.
