Federal Health IT Spending Expected to Jump to $6.5B by 2016

Investments in health IT systems and services by federal government agencies will increase from $4.5 billion this year to roughly $6.5 billion in 2016, according to a report from enterprise software firm Deltek.

The spike in health IT spending stems from the HITECH Act and the Patient Protection and Affordable Care Act, which place a large emphasis on federal investment of health IT, according to the report. Additionally, rising healthcare costs, an aging population and high unemployment will keep the federal government involved in the healthcare supply chain.

The report also found that federal agencies' EHRs are "overly ripe for major transformation," and since the federal government is the single largest payor of healthcare in the United States, it must adjust its health IT model in the short term to trim costs and improve population health outcomes.

Related Articles on Federal Health IT:

Congress Sets Aside $1.4B for Military Health IT in 2012

ONC Publishes Final Rule on ONC-Approved Accreditor Discipline Process

Health IT Standards Committee Seeks Comments on Nationwide Health Information Network

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