Happy New Year to our Clients and Friends,
It is that time of the year to look in our crystal ball and share our top predictions for 2014 — here is what we see in the healthcare IT landscape.
Click here for the H.I.T. Greatest Hits
- Revenues for healthcare technology companies will grow 8-10%, with some sectors, such as data analytics, growing at a much faster rate.
- We anticipate 3-5% growth in healthcare services expenditures. The confluence of ICD-10 adoption and value-based reimbursement coupled with continuing cutbacks in Medicare rates, all point to a challenging 2014 for the providers, even with the extended coverage under the ACA.
- 2014 will be the year that consumer pressure for price transparency finally breaks through. The days that two different hospitals can charge $6,000 and $100,000 for the same appendectomy procedure are numbered. Secrecy over the healthcare prices negotiated in the private sector will slowly come undone aided by resources such as the Healthcare Blue Book.
- Diagnostics apps using smartphones will go mainstream and their growth will accelerate. We believe Silicon Valley will lead innovations in this sector.
- As patient responsibility increases and claims automation takes root, we will start to see the new generation of healthcare payment companies operating more like PayPal and Square.
- There will be a much closer integration between the clinical and the administrative functions — watch for more EMR companies building/buying RCM businesses and vice versa.
- Consolidation activity will be robust and will exceed 2013 levels with the largest vendors being the most active acquirers.
Wishing you all a healthy and prosperous year.