Trends in Healthcare Information Technology

FOR IMMEDIATE RELEASE

Tenth Annual HIMSS Leadership Survey Sponsored by IBM

Trends in Health Care Information Technology:

Y2K Conversions Quickly Rise to Number One IT Priority in 1999 -- Strategic Plans and Budget Are In Place, With IT Outsourcing Growing Quickly

CHICAGO -- April 1999 -- Over the next 10 months, healthcare information technology (IT) professionals will race the clock to implement Year 2000 conversions. Not surprisingly, triple the number of IT professionals cite this as their number one priority compared to a year ago, according to the Tenth Annual HIMSS Leadership Survey Sponsored by IBM.

According to the survey, almost three-quarters of IT budgets are expected to increase over the coming year. The funds appear to be in place to pull this off. Still, recruitment and retention of high quality IT staff could be the barrier that will prevent these plans from being met on time.

Y2K preparations don't seem to be hindering the slow but steady implementation of Computerized Patient Records (CPRs), use of the Web, HIPAA security compliance, or telehealth applications.

Looking to the near-term future of healthcare IT, the survey found that provider organizations would most likely turn to wireless information appliances to provide new solutions to business and clinical challenges. Web-enabled business transactions (e-commerce) are expected to gain acceptance as well. About the Survey

The Tenth Annual HIMSS Leadership Survey Sponsored by IBM, represents opinions of more than 1,100 senior executives, IT managers, operations and financial managers, and other provider organization professionals from around the world regarding their use of Information Technology (IT). Respondents accessed and participated in the 1999 survey from locations around the globe via the Internet.

Of the total respondents, 46% are HIMSS members. Forty-eight percent work for a multi-entity healthcare network with hospitals; 16% at stand-alone hospitals, the remainder at a variety of healthcare organizations, including long-term care, home health care, group medical practices, and HMOs.

The complete survey, including tables and charts, is available to all HIMSS website visitors at www.himss.org. The survey also may be printed by downloading the data.

Citing This Survey: Individuals and editors are encouraged to cite detailed results and any accompanying graphics in either printed matter, publications, or any other occasion, as long as the information is attributed to "The Tenth Annual HIMSS Leadership Survey Sponsored by IBM."

The following abbreviated summary provides highlights, only, of the final survey.

Y2K Conversion Top IT Priority

Healthcare organizations' top IT priority for the remainder of 1999 is implementing a Y2K conversion, say 39% of respondents vs. 11% in 1998. Integrating systems in a multi-vendor environment is the second most frequently mentioned priority (18%).

Recruiting and retaining high-quality IT staff dropped to 8% after being 1998's top IT priority at 17%. However, 23% of respondents this year say difficulties recruiting and retaining IT staff is their Number One barrier to successfully implementing IT. Fourteen percent cite lack of financial support and difficulty proving quantifiable IT benefits as other significant barriers.

Increased IT Budgets Anticipated

While lack of financial support is a significant implementation barrier, 72% of healthcare organizations' IT budgets are expected to increase in the next 12 months. Forty-six percent of respondents report IT budgets will definitely increase, while 26% say their budgets will probably increase.

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Long-term strategic plans increases were cited by 48%. An additional 13% say overall budget increases and ability to prove return-on-investment are also important reasons for increased IT dollars. Thirteen percent of respondents anticipate no budget changes; only 5% anticipate a decrease during the next 12 months (compared to 7% in 1998).

Expenditures for outsourcing specific functions to vendors -- a major IT budget component -- increased during the past year; 81% of this year's respondents report outsourcing key IT functions (a 23% increase from 1998). Applications support is the top outsourced function at 15%. Other key functions -- technical support, website support, and PC support -- each received 12% of responses.

Full Implementation of CPRs Nearing

U.S. healthcare organizations are making faster progress toward implementing computer-based patient records this year. Ten percent of respondents (compared to 2% in 1998) say their organizations have a fully operational CPR system in place. Twenty-four percent have developed a CPR implementation plan; 29% have begun installing a CPR system, and 28% have not started planning for a CPR system.

Internal IT Security Still a Concern

The threat of internal security breaches continues to be Survey respondents' biggest concern regarding computerized medical information; 30% say it is their Number One security concern. Other security issues include the limits of existing security technology (21% compared to 18% last year), and external security breaches (14% in both years).

Web Applications Growing

Only 2% of this year's respondents indicate their organizations do not yet have a website. For those that do, the top Web applications are organizational promotion (29%); employee recruitment (19%), and consumer health information (17%).

Use of more sophisticated Web-based functions is increasing. An online physician/provider directory was cited by 15% of respondents (compared to 6% in 1998), and 2% are conducting electronic vendor transactions via the Web vs. 1% last year.

MIT Number One Telehealth Application

Medical image transmission (MIT) is the Number One telehealth application in 1999, say 24% of respondents. Using telehealth systems for management or business-related videoconferences is reported by 19% of respondents, and professional continuing education applications by 16%. Patient interviews and consultations are mentioned by only 8%, and patient education by 9%. According to 16% of respondents, their organizations are not using telehealth applications.

Wireless Information Appliances Take Top Spot

Wireless information appliances displaced voice recognition at the top spot this year with 20% of respondents citing it as the emerging information technology their organizations are most likely to begin using in the coming year. (Wireless appliances were cited by 13% of respondents in 1998 and voice recognition by 31%, compared to 16% this year.)

Other top emerging technologies for the next year include Web-enabled business transactions (19%), and data mining (14%).

About HIMSS

Healthcare Information and Management Systems Society, founded in 1961 and based in Chicago, is a not-for-profit association representing more than 12,000 healthcare professionals in the areas of clinical systems, information systems, management engineering, and telecommunications. The Society is dedicated to leadership in healthcare by providing the highest value in lifelong learning for the management of information, technology, and change.

About IBM Global Healthcare Industry

IBM Global Healthcare Industry, an industry business unit within IBM, is chartered with understanding the customer's business needs and delivering integrated solutions that take advantage of leading-edge technologies and applications from IBM and its Business Partners, and adding value for IBM's customers.

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