Forecast: HHS to Spend $5 Billion on Technology in 2007
The Department of Health and Human Services will probably spend more than $5 billion on 670 technology initiatives in 2007, according to forecasts.The U.S. Department of Health and Human Services will probably spend more than $5 billion on 670 technology initiatives in 2007, according to forecasts from a company that helps businesses find federal contracts. According to fedXccel, the spending represents a 9 percent increase over 2006 levels, though it is a mere drop in the bucket for a department with a budget of nearly $700 billion. Other reports predicting total health IT spending in the United States and Canada have ranged from $25 billion in 2009 to $39.5 billion in 2008, according to the Health Information Management and Systems Society. Such spending will come largely from hospitals. HHS Secretary Mike Leavitt is fond of saying that the U.S. government is the countrys biggest health care spender and that the government intends to use its power as a purchaser to move markets. The government has recently asked large employers to sign on to a commitment promoting cost and quality transparency and advocating health information systems that can share information across disparate systems.
In August, President George Bush signed an executive order that government agencies should demand interoperable health care systems when upgrading or acquiring relevant systems.