Drivers for IT Growth - Industry Trend or Event - Brief Article

Health Management Technology, August, 2001

Increased spending on clinical systems that reduce medical errors could be the torch that lights a fire under information technology investments, according to analysts at Bear Stearns & Co., New York. The analysts said they think the Leapfrog Group's focus on patient safety has drawn so much provider attention, it will alter healthcare purchasing patterns. The Leapfrog Group is a consortium of major corporations that have focused on making the reduction of medical errors a major consideration when making healthcare buying decisions.

The analysts, Ray Falci and Andrew Weinberger, recently surveyed hospitals, vendors and consultants to reach their conclusions. "While many continue to `beat the HIPAA drum' in anticipation for an increased momentum in buying trends, we believe heightened public awareness of medical errors and clinical IT inefficiency is more likely to drive future capital budgets, including the implementation of computerized physician order entry and clinical information Systems," they wrote. "We see this phenomenon having a profound impact on the market." www.bearstearns.com