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February 01, 2006
Government Initiatives and Emerging Integrated Healthcare Approaches to Boost Deployment of Healthcare IT Systems
Government Initiatives and Emerging Integrated Healthcare Approaches to Boost Deployment of Healthcare IT Systems
LONDON, February 1 /PRNewswire/ -- Expenditure on healthcare IT in
Germany represents a paltry 0.5 per cent of total healthcare outlays - an
extremely low proportion when compared to other developed countries. However,
the pursuit of a more integrated healthcare IT policy, government initiatives
and new reimbursement structures are set to boost demand for healthcare IT in
Germany.
Only 15-20 per cent of German hospitals currently follow an integrated
healthcare IT strategy that embraces the hospital-based, in-patient sector
and the ambulatory, out-patient sector. This low penetration rate has been
attributed to a variety of reasons - the absence of coherent federal
initiatives towards eHealth, the decentralised healthcare administration
which has resulted in varying levels of IT development in the different
Lander , restricted hospital IT budgets and the lack of an articulated
enterprise-wide IT strategy.
However, new integrated care approaches and disease management programmes
are now aiming to integrate and co-ordinate ambulatory and hospital care.
This is set to trigger increased demand for healthcare IT solutions,
creating, in particular, strong growth potential for clinical systems in the
outpatient arena. As a result, exciting investment opportunities are emerging
in Germany's healthcare IT sector.
After 2005-2006, government initiatives and the launch of a new hospital
billing system under the diagnosis-related groups (DRGs) is poised to
accelerate market growth. Recent healthcare reform acts have prioritised
healthcare IT with Federal initiatives encompassing electronic patient cards,
healthcare professional cards, e-prescription and electronic patient records.
"Whereas previously healthcare IT was initiated at Lander level, and
often implemented in the form of pilot projects, a nation-wide approach is
planned as stated in the Health Ministry's master plan 'Information
Technology Society Germany 2006,'" notes Siddharth Saha, Programme Manager -
Healthcare IT at Frost & Sullivan (http://healthcare.frost.com).
Legislation requiring the transmission of all patient and procedure data
to the sickness funds for reimbursement purposes in electronic form and new
reimbursement regulations introduced for in-patient treatment following the
establishment of DRGs, has compelled hospitals to invest in the necessary IT
systems to achieve regulatory conformity.
In addition to hospitals having to comply with regulatory requirements
(DRGs, procedural coding etc), greater awareness of the role IT systems play
in improving work-flows, controlling costs and increasing cost-efficiency are
also set to expand the German healthcare IT market.
The total German healthcare IT market including clinical and
administrative systems (hardware, software, services and maintenance
contracts) targeting both hospital and ambulatory sectors has been estimated
at Euro 1.2 billion in 2003. Segments with the highest potential include
picture archiving and communications systems/radiology information systems
(PACS/RIS), electronic medical records (EMR), decision support tools and data
management systems.
Initially, healthcare IT was dominated mainly by administrative systems
that facilitated patient data administration and financial
reporting/purchasing. However, even as the market for administrative systems
has become increasingly saturated, the demand for clinical systems has been
rising. In keeping with these trends, a steady annual growth rate of 5.7 per
cent is estimated for administrative systems and 15-20 per cent for clinical
systems up to 2006. This indicates expanding market opportunities for
suppliers of clinical systems.
Formidable barriers await competitors wishing to enter the increasingly
attractive German healthcare IT market. Existing barriers include an already
high level of competition, a price driven market where purchasing decisions
tend to focus on price and the lack of quick return on investment.
To facilitate their market entry, new competitors could contemplate
either acquiring or entering into partnership/alliances with a German
company. Ultimately, the key factors for success will include relationship
building and focusing on optimising service provision.
"It is vital for suppliers to build and maintain relationships with key
personnel in hospitals/clinics," says Mr. Saha. "Also, hospitals operate 24/7
and therefore need high service levels and reliability. Hospitals value
sufficient support that is still affordable. Accordingly, suppliers must
constantly strive to enhance their service provision component."
If you are interested in a virtual brochure, which provides
manufacturers, end-users, and other industry participants an overview of the
latest analysis of the Analysis of the German Healthcare IT Markets (B708),
then send an e-mail to Radhika Menon Theodore, Corporate Communications, at
rmtheodore@frost.com with the following information: your full name, company
name, title, telephone number, fax number and e-mail address. Upon receipt of
the above information, an overview will be sent to you via e-mail.
Background
Frost & Sullivan, a global growth consulting company, has been partnering
with clients to support the development of innovative strategies for more
than 40 years. The company's industry expertise integrates growth consulting,
growth partnership services and corporate management training to identify and
develop opportunities. Frost & Sullivan serves an extensive clientele that
includes Global 1000 companies, emerging companies, and the investment
community, by providing comprehensive industry coverage that reflects a
unique global perspective and combines ongoing analysis of markets,
technologies, econometrics, and demographics.
Media Contacts:
Europe:
Radhika Menon Theodore
Corporate Communications
P: +91-(044)-4204454
E: rmtheodore@frost.com
Americas:
Melina Trevino
Corporate Communications
P: +1-210-247-2440
F: +1-210-348-1003
E: melina.trevino@frost.com
India:
Surbhi Dedhia
Corporate Communication
P: +91-22-2832-4705 Ext: 131
E: sdedhia@frost.com
Asia Pacific:
Jasminder Kaur
Corporate Communications
P: +65-68900937
E: jkaur@frost.com
Australia:
Sharmin Jassal
Corporate Communications
P: +61-2-8247-8900
F: +61-2-9252-8066
E: sjassal@frost.com
Keywords: Germany, German healthcare IT, healthcare IT, integrated
healthcare IT, diagnosis-related groups, DRGs, Lander, electronic patient
cards, healthcare professional cards, e-prescription, electronic patient
records, Information Technology Society Germany 2006, picture archiving and
communications systems, radiology information systems, PACS, RIS, electronic
medical records, EMR
SOURCE Frost & SullivanPosted by cmayaud at 07:04 PM | Permalink| Comments (0)
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