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Deltek forecasts $2.7 billion in new HIT spending through 2017

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HERNDON, Va. – December 18, 2012– Deltek, Inc., the leading global provider of enterprise software and information solutions for professional services firms and government contractors, has released a new research report “Health Care and Social Services Market, 2012-2017.” The report outlines that demand for information technology among U.S. state and local health and human services agencies is expected to increase from $16.6 billion in 2012 to $19.3 billion in 2017 at a compound annual growth rate (CAGR) of 3.1%, with  $2.7 billion in new spending over that time.
“Despite the political rancor over federal health care reform, federal, state, and local leaders are committed to reducing the burden of health care costs on Medicaid, children’s health insurance, and public health care facilities,” says Chris Dixon, Deltek’s senior manager of state and local industry analysis. “The real question is how governors want to use IT to attack the major concerns of reducing improper payments and moving the health insurance programs toward quality-based care.”  According to the report, the key forces currently shaping the healthcare IT market include:

    Gradual stabilization of state and local revenue streams
    Implementation of IT architectures to incrementally modernize systems supporting means-tested benefit programs
    Increased federal direction and mandates to reduce waste, fraud, and abuse (i.e., improper payments)
    Renewed efforts (by most states) to implement health insurance exchanges (HIX), following the recent U.S. Supreme Court decision upholding federal health care reform

“With sustained high levels of unemployment, states and localities will continue to see increased demand for social services programs,” says Dixon, “And we’re already seeing a renewed debate in the Presidential campaign over the future of welfare-to-work programs that faded during the economic boom.  This bodes well for further integration and architectural efforts at the national level to bring increased coherence to a historically fragmented IT environment.” Current evidence of this trend includes increased federal funding participation for systems integration efforts and the release of the Medicaid Information Technology Architecture 3.0.

The report also includes a spreadsheet with supporting data for many charts in the report. A free summary of this GovWin IQ report is available at: “State Health Care and Social Services Market, 2012-2017.” Press interviews can be arranged through Jessica Primanzon.


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