
Expenditures in the US healthcare IT market range between $17-42 billion (MEDSTAT, Datamonitor); Forrester estimates the market to be closer to $61 billion/year. Hospitals account for 60% of the total market (Data Nation). Institutional healthcare IT expenditures as a percentage of revenue have grown from 1-2% in 1998 to 4-5% currently (MEDSTAT). Furthermore, growth is expected to accelerate and outpace other industries. Growth estimates vary from 5-7% to 10-15% to as high as 18% (Data Nation, MEDSTAT); these positive trends are corroborated by Cap Gemini, who predicts that hospitals will spend between 6-10% of capital expenditures on IT in 2005. These figures do not account for very large opportunities in foreign countries. |